Cleanspark, Inc. · NASDAQ:CLSK
Cleanspark — Investor Presentation (December 2022)
33 slides from Cleanspark's investor presentation, Dec 23, 2022
Slide 1: Investor Presentation December 2022
Investor Presentation December 2022 ®
Slide 2: Forward-looking statements cautionary note
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 November 535 BTC Key Indicators* Current Operational Power 197.5 MW Daily Production High 21.7 BTC Projected Hashrate Current Hashrate 6 EH/s 16 EH/s BTC Mined FY22 3,750 BTC Machines to be Delivered Machines Operating 62,000 4,350 *As of December 21, 2022 34.5 MW Pending
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 clean ener
Slide 10: How We Allocate Opportunity
How We Allocate Opportunity Current mix: 2/3rds 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, n
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)
Hashrate Total Bitcoin Mined Total Bitcoin Mined Bitcoin Mined and Hashrate Growth (Historical) FY2023
Slide 14: Bitcoin Mined and Hashrate Growth (Projected)
Bitcoin Mined and Hashrate Growth (Projected) Hashrate Total Bitcoin Mined PROJECTED BEGINNING OF FISCAL YEAR (OCT. 1, 2022) 42,000+ Operational Miners 4.16 EH/s 140 MW Operational ~160,000 Operational Miners 16.0 EH/s ~510 MW Operational PROJECTED END OF CALENDAR YEAR (DEC. 31, 2023) Total Bitcoin
Slide 15: Capital Expenditures
Capital Expenditures *As of December 21, 2022 **Planned infrastructure capex for Sandersville & Washington (200MW @ $350k/MW) Deployed 62,000 Ready for Deployment Miners on Hand 700 62,700 Miners to be Delivered 4,350 Hash Rate to be Delivered 435PH Miner CapEx $0 Construction CapEx Total Current Ca
Slide 16: Our Facilities
*As of December 21, 2022 **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-locatio
Slide 17: Introducing Our Facility in Washington, GA
Introducing Our Facility in Washington, GA Facility Washington Type Owned Capacity 36 MW Operational 32 MW* Pending 4 MW Clean Energy* 70% *Percentage indicates energy mix comprised of non-carbon producing energy sources, including solar, wind, hydro, and nuclear, based on publicly reported energy m
Slide 18: Our Second Acquisition of the Year: Sandersville, GA
Our Second Acquisition of the Year: Sandersville, GA Facility Sandersville Type Owned Capacity 80 MW Operational 60 MW Pending 20 MW Clean Energy* 72% *Percentage indicates energy mix comprised of non-carbon producing energy sources, including solar, wind, hydro, and nuclear, based on publicly repor
Slide 19: Financial Performance: Revenue & Margins
NASDAQ: CLSK Financial Performance: Revenue & Margins Gross Profit $26.2m $31.0m $26.2m $22.9m $9.5m 36% $20.7m 67% $9.5m 36% $19.8m 87% Revenue
Slide 20: Financial Performance: Profitability
Financial Performance: Profitability $2.9m 11% $15.1m 49% ($42.3m) ($29.3m) ($42.3m) ($5.4m) $10.6m 46% Adjusted EBITDA Net Income/Loss $2.9m 11%
Slide 21: Key Indicators Year-over-year Comparison (FY21 & FY22)
Key Indicators Year-over-year Comparison (FY21 & FY22) 892 BTC 3,750 BTC FY2021 FY2022 Bitcoin Mined $49.4M $131.5M FY2021 FY2022 Revenue 10,161 42,000+ FY2021 FY2022 Machines Operating 1.01 EH/s 4.16 EH/s FY2021 FY2022 Hashrate 33MW 140MW FY2021 FY2022 MW Operational 2 4 FY2021 FY2022 Facilities Ow
Slide 22: 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 (November 30, 2022) Source: Most recently available company filings (November 30, 2022) Note: Companies’ June hashrate equals the a
Slide 23: 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 197.5 MW operational, a daily BTC production high of approximately 21.7 per day, and a rapid
Slide 24: Appendix
Appendix
Slide 25: 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 26: 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 Digital Currency Mining Revenue, Net 36,974,578 36,965,739 30,941,726 26,117,643 130,999,686 Other Services Revenue 297,181 86,282 86,055 55,241 524,759 Total Revenue, Net
Slide 27: Net Income and Adjusted EBITDA Reconciliation 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 Income (loss) before income tax (expense) or benefit 16,283,120 1,017,746 (16,236,076) (41,154,181) (40,089,393) Income tax (expense) or benefit - - - - - Income (loss) from continuing
Slide 28: Income Statement FY21
Income Statement FY21 Q1-21 December 31, 2020 Q2-21 March 31, 2021 Q3-21 June 30, 2021 Q4-21 September 30, 2021 FY-21 September 30, 2021 Revenue, Net Digital Currency Mining Revenue, Net 733,410 6,715,793 8,649,440 22,747,990 38,846,633 Other Services Revenue 381,326 425,662 402,628 379,230 1,588,84
Slide 29: Net Income and Adjusted EBITDA Reconciliation FY21
Q1-21 December 31, 2020 Q2-21 March 31, 2021 Q3-21 June 30, 2021 Q4-21 September 30, 2021 FY-21 September 30, 2021 Income (loss) before income tax (expense) or benefit (4,990,825) 9,588,462 (14,074,995) 3,600,347 (5,877,011) Income tax (expense) or benefit - - - - - Income (loss) from continuing ope
Slide 30: Balance Sheet
Balance Sheet September 30, 2022 September 30, 2021 Assets Current assets Cash and cash equivalents, including restricted cash $20,462,570 $18,040,327 Accounts receivable, net $27,029 $307,067 Inventory $216,404 $79,810 Prepaid expense and other current assets $7,930,614 $2,137,801 Digital currency
Slide 31: Balance Sheet (cont'd)
Balance Sheet (cont’d) September 30, 2022 September 30, 2021 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $24,661,860 $6,982,514 Operating lease liability $112,955 $104,131 Finance lease liability $260,387 $413,798 Acquisition liability - $300,000
Slide 32: 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 33: CleanSpark - America's Bitcoin Miner
CleanSpark + America’s Bitcoin Miner™