Here are my thoughts on the most recent CleanSpark (CLSK) earnings
On Dilution
Lots of controversy and FUD around CLSK diluting
Here is how I would frame the dilution: If you could buy one BTC for 16k, would you dilute / leverage your personal balance sheet to acquire more BTC?
CleanSpark dilutes their equity to better fund operations, keep a healthy balance sheet (and not take on too much debt)
CLSK cost to mine 1 BTC is 16K. This is the lowest out of all miners out there
Their dilution allows them to acquire more BTC at post FTX blow-up prices. If this isn’t bullish…
I’ve mentioned this previously, but historically, when BTC enters up only mode, dilution really doesn’t matter
Overall thoughts on earnings
CleanSpark is leading the industry with their ability to operate and execute. I’ve mentioned this before and it remains true.
This is all reflected with their low cost to mine one BTC. They have:
99.87% uptime for miners (vs. 85% for industry average). This means:
Ability to underclock vs. overclock their miners
Overclocking means to work their machines slightly harder (more hash) when energy is cheap
Underclocking means to work their machines less hard (less hash) when energy is expensive
As a result, energy efficiency is through the roof. They use up to 37% less energy to mine 1 BTC compared to their peers
Their balance sheet is very healthy, they hold a lot of cash and have very little debt
As a result, they have the ability to think strategically mergers & acquisitions
Lots of smaller miners verging on bankruptcy going into the halvening
Distressed buying equipment/facilities is a play that Cleanspark is actively watching for
They’ve also mentioned they are open to M&A opportunities with similar sized miners
They announced a strategy where they will only sell BTC to cover their expenses (16K for 1 BTC mined) and hodl the rest
Their BTC holdings went from 1194 -> 2575 this past quarter
They mined 1877 (record high) BTC this quarter as well
Conclusion
Nothing has changed really
I remain bullish, my miner thesis still holds, and CLSK is very undervalued relative to the existing miners out there