Cleanspark, Inc. · NASDAQ:CLSK
Cleanspark — Investor Presentation (May 2023)
30 slides from Cleanspark's investor presentation, May 15, 2023
Slide 1: Investor Presentation May 2023
Investor Presentation May 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 within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on CleanSpark’s current beliefs and expectations. The incl
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 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 miner
Slide 7: Key Indicators
Key Indicators* Current Hashrate 6.7 EH/s BTC Mined Calendar Year to Date 2,395 BTC Machines Operating 67,700+ *As of May 10, 2023 Projected Hashrate (By 12/31/23) 16 EH/s Machines to be Delivered 62,000
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: Corporate Social Responsibility
Corporate Social Responsibility EMPLOYMENT TYPE Regular Full Time Manager Full Time Executive Full Time Regular Full Time Temporary Full Time 64.2% 20.0% 7.4% 7.4% 1.0% DEMOGRAPHICS White Black Two or More Races Hispanic Asian 31.6% 28.4% 10.5% 9.5% 9.5% Other 10.5% ENERGY MIX Clean Energy Carbon-Ba
Slide 11: 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 12: 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 13: Current and Future Performance
Current and Future Performance
Slide 14: 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 15: Bitcoin Mined and Hashrate Growth (Historical & Projected)
Bitcoin Mined and Hashrate Growth (Historical & Projected) Hashrate Total Bitcoin Mined Total Bitcoin Mined PROJECTED BEGINNING OF YEAR (OCT. 1, 2022) 42,000+ Operational Miners 4.16 EH/s 140 MW Operational ~150,000 Operational Miners 16 EH/s ~450 MW Operational PROJECTED END OF YEAR (DEC. 31, 2023)
Slide 16: Capital Expenditures
Capital Expenditures* *As of May 10, 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 to m
Slide 17: Our Facilities
*As of May 10, 2023 Facility College Park Norcross Washington Sandersville Co-Locations Under Review Total Type Owned Owned Owned Owned Hosted Operating Hashrate 1.25 EH/s 0.5 EH/s 1.1 EH/s 2.23 EH/s 1.62 EH/s 6.7 EH/s Expected Hashrate 1.25 EH/s .5 EH/s 2.9EH/s 8.53 EH/s 1.62 EH/s 1.2 EH/s 16 EH/s
Slide 18: Key Indicators
Key Indicators 899 BTC 1,871 BTC Q2 FY22 Q2 FY23 Bitcoin Mined 23,000 63,700+ Mar 31, 2022 Mar 31, 2023 Machines Operating 2.3 EH/s 6.7 EH/s Mar 31, 2022 Mar 31, 2023 Hashrate $19.6M $12.7M Mar 31, 2022 Mar 31, 2023 Adj. EBITDA $41.6M $42.6M Mar 31, 2022 Mar 31, 2023 Revenue 31.7 W/TH 31 W/TH Dec 31
Slide 19: 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 (April 2023) Source: Most recently available company filings (April 2023) Source: MinerMag, April 2023 Bitcoin Hashrate Realization
Slide 20: 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 North American miner in terms of hashrate, sustainability, efficiency, & profitability. Current daily BTC production average of 17.47 with a rapidly expanding hashrate of 6.74 EH/s, about 2%
Slide 21: Appendix
Appendix
Slide 22: 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 23: Income Statement Q1-23 and Q2-23
Q1-23 December 31, 2022 Q2-23 March 31, 2023 YTD-23 March 31, 2023 Revenue, Net Bitcoin mining revenue, net $ 27,746 42,488 $ 70,234 Other services revenue 73 58 131 Total revenue, net $ 27,819 42,546 $ 70,365 Costs and Expenses Cost of revenues (exclusive of depreciation and amortization shown belo
Slide 24: Income Statement and Adjusted EBITDA (cont'd)
Q1-23 December 31, 2022 Q2-23 March 31, 2023 YTD-23 March 31, 2023 Income (loss) before income tax (expense) or benefit (30,488) (18,166) (48,654) Income tax expense - - - Loss from continuing operations $ (30,488) $ (18,116) $ (48,654) Discontinued operations Loss from discontinued operations $ 1,4
Slide 25: Income Statement FYE22
Q1-22 December 31, 2021 Q2-22 March 31, 2022 Q3-22 June 30, 2022 Q4-22 September 30, 2022 FYE-22 September 30, 2022 Revenue, Net Bitcoin Mining Revenue, Net $ 36,975 $ 36,965 $ 30,942 $ 26,118 $ 131,000 Other Services Revenue 150 233 86 56 525 Total Revenue, Net $ 37,125 $ 37,198 $ 31,028 $ 26,174 $
Slide 26: Income Statement FYE22 (cont'd)
Income Statement FYE22 (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 FYE-22 September 30, 2022 Income (loss) before income tax (expense) or benefit $ 15,644 $ 2,032 $ (16,236) $ (41,529) $ (40,0
Slide 27: Balance Sheet
Balance Sheet ($ in thousands, except per value and share amounts) March 31, 2023 September 30, 2022 Assets Current assets Cash and cash equivalents $ 10,345 $ 20,463 Accounts receivable, net 47 27 Inventory 746 216 Prepaid expense and other current assets 8,702 7,931 Bitcoin 5,267 11,147 Derivative
Slide 28: Balance Sheet (cont'd)
Balance Sheet (cont’d) ($ in thousands, except per value and share amounts) March 31, 2023 September 30, 2022 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 31,334 $ 24,662 Operating lease liability 119 113 Finance lease liability 216 260 Continge
Slide 29: 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 30: CleanSpark: America's Bitcoin Miner
CleanSpark<+ America’s Bitcoin Miner™ NASDAQ: CLSK +