Cleanspark, Inc. · NASDAQ:CLSK
Cleanspark — Investor Presentation (February 2023)
29 slides from Cleanspark's investor presentation, Feb 16, 2023
Slide 1: Investor Presentation February 2023
Investor Presentation February 2023 ®
Slide 2: Forward-looking statements
CleanSpark cautions you that statements in this presentation that are not a description of historical facts are forward-looking statements. These statements are based on CleanSpark’s current beliefs and expectations. The inclusion of forward-looking statements should not be regarded as a representat
Slide 3: What is Bitcoin Mining?
v What is Bitcoin Mining? A bitcoin mining company uses specialized computers to verify transactions on the bitcoin blockchain. Bitcoin is the reward miners earn for performing this service. Without mining, there would be no bitcoin. Mining is very energy intensive, so maintaining this increasingly
Slide 4: What Do Miners Do?
Bitcoin wallet transaction CleanSpark & other decentralized miners support the network by verifying and securing transactions. Bitcoin wallet transaction What Do Miners Do?
Slide 5: What are Block Rewards?
What are Block Rewards? 21,000,000 BTC mined by 2140 Block rewards are reduced by half every 210,000 blocks (roughly every four years) until all 21M bitcoin are mined. When will that be? Sometime around 2140. 1 block every 10 min. 2140 2024 6.25 BTC per block 900 BTC per day Today
Slide 6: Vision: Top North American Bitcoin Miner
Vision: Top 5 North American Bitcoin Miner Hashrate Our total computational power; when understood in the context of global hashrate, it determines how much bitcoin we are able to mine. Efficiency We determine efficiency by starting with our power costs and dividing it by our hashrate. Efficient min
Slide 7: Monthly Production Key Indicators
Monthly Production January 697 BTC Key Indicators* Current Operational Power 200 MW Daily Production High 24 BTC Projected Hashrate Current Hashrate 6.6 EH/s 16 EH/s BTC Mined FYTD 2,228 BTC Machines to be Delivered Machines Operating 66,750+ 3,680 *As of February 9. 2023 200 MW Planned Expansion
Slide 8: What Makes CleanSpark Different?
What Makes CleanSpark Different? Leave the world better than we found it. Build the infrastructure of the future. Value growth for the greater good.
Slide 9: Environmental, Social, Governance
Competitive wages substantially above industry average with clear career paths Full suite of employee benefits, including PTO, health insurance, and 401K plan Reinvesting in the communities we operate in through scholarships and other philanthropic commitments Targeting 100% renewable and low-carbon
Slide 10: How We Allocate Opportunity
How We Allocate Opportunity Current mix: 3/4th owned-and-operated Hybrid approach of using co-location partnerships for scalability and wholly-owned locations to secure our future Infrastructure first; we balance how & when we acquire machines ASIC ecosystem is ripe for disruption—faster, better, ne
Slide 11: Value Growth for the Greater Good
We use capital transparently because securing the bitcoin blockchain is a privilege and a responsibility we take to heart. Bitcoin is a store of value and medium of exchange. We combine it with the wise stewardship of our equity and the responsible deployment of debt to grow our business in the best
Slide 12: Current and Future Performance
Current and Future Performance
Slide 13: Bitcoin Mined and Hashrate Growth (Historical)
Bitcoin Mined and Hashrate Growth (Historical) Hashrate Total Bitcoin Mined Total Bitcoin Mined College Park Norcross Washington Sandersville Co-locations
Slide 14: Bitcoin Mined and Hashrate Growth (Projected)
Bitcoin Mined and Hashrate Growth (Projected) Hashrate Total Bitcoin Mined Total Bitcoin Mined College Park Norcross Washington Sandersville Co-Locations Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 New Opportunities PROJECTED BEGINNING OF YEAR (OCT. 1, 2022) 42,00
Slide 15: Capital Expenditures
Capital Expenditures* *As of February 9, 2023 **Based on current pricing and dependent on miner model mix ***Planned infrastructure capex for Sandersville & Washington (200MW @ $350k/MW) Deployed 66,768 Ready for Deployment Miners on Hand 3,680 70,448 Miners to be purchased 75,000 - 95,000 Hashrate
Slide 16: Our Facilities
*As Feb 5, 2023 **Percentage indicates energy mix comprised of non-carbon producing energy sources, including solar, wind, hydro, and nuclear, based on publicly reported energy mix data and/or data provided directly by utilities. Wholly-owned locations includes renewable credits; co-location data as
Slide 17: Key Indicators
Key Indicators 660 BTC 1,531 BTC Q1 FY22 Q1 FY23 Bitcoin Mined 18,800 63,700+ Dec 31, 2021 Dec 31, 2022 Machines Operating 1.9 EH/s 6.2 EH/s Dec 31, 2021 Dec 31, 2022 Hashrate 66.5MW 200MW Dec 31, 2021 Dec 31, 2022 MW Operational 2 4 Dec 31, 2021 Dec 31, 2022 Wholly-owned Facilities
Slide 18: Performance Landscape: Top of Pack for Hashrate, BTC Mined, & Efficiency
Performance Landscape: Top of Pack for Hashrate, BTC Mined, & Efficiency BTC Mined In EH/s BTC Mined Hashrate Efficiency Source: Most recently available company filings (January 2023) Source: Most recently available company filings (January 2023) Source: MinerMag, January 2023 Bitcoin Hashrate Reali
Slide 19: CleanSpark is America's Bitcoin Miner
CleanSpark is America's Bitcoin Miner™ Our vision is to build the infrastructure of the future by being a Top 5 North American miner in terms of hashrate, sustainability, efficiency, & profitability. We have 206 MW operational, a daily BTC production average of 22.4 per day, and a rapidly expanding
Slide 20: Appendix
Appendix
Slide 21: Management Team
Management Team Natasha Betancourt CHIEF OF STAFF Taylor Monnig VP, MINING TECHNOLOGY Isaac Holyoak CHIEF COMMUNICATIONS OFFICER Gary A. Vecchiarelli CHIEF FINANCIAL OFFICER Zach Bradford CEO & PRESIDENT S. Matthew Schultz EXECUTIVE CHAIRMAN Rachel Silverstein SVP, COMPLIANCE & GENERAL COUNSEL Scott
Slide 22: Income Statement Q1-23
Q1-23 December 31, 2022 YTD-23 December 31, 2022 Revenue, Net Bitcoin mining revenue, net $ 27,746 $ 27,746 Other services revenue 73 73 Total revenue, net $ 27,819 $ 27,819 Costs and Expenses Cost of revenues (exclusive of depreciation and amortization shown below) 20,416 20,416 Professional fees 2
Slide 23: Income Statement Q1-23 (cont'd)
Q1-23 December 31, 2022 YTD-23 December 31, 2022 (Loss) Income before income tax (expense) or benefit (30,488) (30,488) Income tax expense - - Loss from continuing operations $ (30,488) $ (30,488) Discontinued operations Loss from discontinued operations $ 1,457 $ 1,457 Net (loss) income $ (29,031)
Slide 24: Income Statement FY22
Q1-22 December 31, 2021 Q2-22 March 31, 2022 Q3-22 June 30, 2022 Q4-22 September 30, 2022 FY-22 September 30, 2022 Revenue, Net Bitcoin Mining Revenue, Net $ 36,975 $ 36,966 $ 30,942 $ 26,117 $ 131,000 Other Services Revenue 150 86 86 203 525 Total Revenue, Net $ 37,125 $ 37,052 $ 31,028 $ 26,320 $
Slide 25: Income Statement FY22 (cont'd)
Income Statement FY22 (cont’d) ($ in thousands, except per value and share amounts) Q1-22 December 31, 2021 Q2-22 March 31, 2022 Q3-22 June 30, 2022 Q4-22 September 30, 2022 FY-22 September 30, 2022 Income (loss) before income tax (expense) or benefit $ 15,644 $ 1,018 $ (16,236) $ (40,515) $ (40,089
Slide 26: Balance Sheet
Balance Sheet ($ in thousands, except per value and share amounts) December 31, 2022 September 30, 2022 Assets Current assets Cash and cash equivalents $ 2,061 $ 20,463 Accounts receivable, net 30 27 Inventory 392 216 Prepaid expense and other current assets 6,069 7,931 Bitcoin 3,863 11,147 Derivati
Slide 27: Balance Sheet (cont'd)
Balance Sheet (cont’d) ($ in thousands, except per value and share amounts) December 31, 2022 September 30, 2022 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 27,927 $ 24,662 Operating lease liability 260 113 Finance lease liability 218 260 Conti
Slide 28: Non-GAAP Measures
Non-GAAP Measures Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States (“GAAP”). Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's
Slide 29: CleanSpark - America's Bitcoin Miner
CleanSpark + America’s Bitcoin Miner ™