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The call conveyed a constructive strategic narrative: CleanSpark is transitioning from a mining-focused company into a digital infrastructure and AI/HPC developer with substantial contracted power (1.8 GW), clear site milestones (Sandersville live + acreage, Sealy and Brazoria approvals), strong liquidity (~$1.2B) and evolving commercial and modular construction capabilities. At the same time, near-term financials remain challenged—revenues fell ~25% QoQ driven by a ~24% drop in average Bitcoin price, the company reported a large GAAP net loss (~$378M) driven by ~ $263M of noncash mark-to-market charges, and adjusted EBITDA remains materially negative. Execution risk (lease signings, build timelines), potential asset impairments during conversion, and market volatility for DAM are notable short-term headwinds. Overall, the strategic positives and balance-sheet strength provide meaningful optionality to execute the AI/HPC transition, but near-term financial results and execution risks persist.
CleanSpark’s guidance emphasized disciplined, capacity‑driven growth: the company has 1.8 GW of currently contracted capacity (and a >5 GW pipeline), Sandersville’s 250 MW is live and an additional 122‑acre parcel was acquired, Metro Atlanta added 25 MW last month, Sealy has 285 MW approved with just over 200 MW slated to energize in H1 2027, and Brazoria totals 600 MW (300 MW ERCOT‑approved; second 300 MW progressing). Management reiterated conservative capital deployment (a “couple hundred million” deployed at Sandersville to date, current site spend in the millions not tens of millions until lease), expect 14–18 months from lease signing to delivery, plan modular factory builds that can cut on‑site labor by up to 70%, and see constructive financing markets (recent data‑center financings 5–6x oversubscribed, pricing just over 6%, $400M of Bitcoin credit capacity available). Operational and financial metrics driving the guidance included Q2 average Bitcoin ~$76k (down 24% QoQ from ~$100k), revenue down ≈$45M (≈25%) to ~$136M, mined 1,799 BTC (22 fewer QoQ), gross margin >40% (vs 47% prior quarter), net loss ≈$378M (includes ≈$263M non‑cash BTC mark‑to‑market), adjusted EBITDA −$241M (improved from −$295M), liquidity ≈$1.2B (cash $260M + 13,561 BTC valued $925M at Mar 31; HODL ≈$1.1B post‑quarter), and DAM cash generation ~$4M this quarter ($17.2M fiscal YTD).
1.8 gigawatts of currently contracted capacity across the portfolio, with a broader pipeline of greater than 5 gigawatts of potential capacity beyond contracted assets, providing optionality for HPC and AI deployments.
All 250 megawatts at Sandersville are live; company closed on an additional 122-acre parcel to support full greenfield data center build and is progressing with a lead prospective (high-credit-quality) tenant in active commercial negotiations.
Sealy: 285 MW approved with just over 200 MW scheduled to energize in H1 2027 and substation construction underway. Brazoria: 600 MW in two phases with ERCOT approval received for the first 300 MW and the second 300 MW progressing through review.
As of March 31 the company reported approximately $1.2 billion of liquidity (about $260 million cash + 13,561 BTC valued at $925 million at quarter end). Since quarter end the HODL value rose to ~ $1.1 billion and the company has $400 million capacity available on Bitcoin-backed lines of credit.
Mined 1,799 Bitcoin in the quarter—only 22 less than the prior quarter—indicating stable operational uptime. Power costs improved to $0.052/kWh (from $0.056 prior quarter and $0.06 year-ago). New immersion miners and contracted equipment expected to lower energy intensity from ~16 J/TH, with management forecasting hashrate/production to trend higher later in the year.
Maintained a gross margin >40% for the quarter (vs. 47% prior quarter) despite lower BTC prices. Adjusted EBITDA improved sequentially to negative $241 million from negative $295 million in the prior quarter.
Company added 25 MW of contracted capacity in Metro Atlanta last month; emphasizes long-duration leases with portfolio offerings and factory-based modular construction that can reduce on-site labor by up to 70%, aiming to compress build timelines and repeatable delivery.
DAM generated approximately $4 million net positive cash returns this quarter and $17.2 million fiscal YTD while activating <40% of Bitcoin/DM strategies, validating ability to generate supplemental cash in volatile environments.
Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to CleanSpark's Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] Harry, you may begin your conference.
Thanks, Krista, and thank you for joining us today to review the second quarter 2026 Financial Results for CleanSpark. We encourage you to review our earnings results press release, which was filed today and is available on our website. A webcast replay and transcript of today's call will be added to our website as well once available. On the call today, I'm joined by Matthew Schultz, our Chairman and Chief Executive Officer; and Gary Vecchiarelli, our President and Chief Financial Officer. Some of the statements we make today will be forward looking based on our best view of the world and our business as we see them today. The statements and information provided remain subject to the risk factors disclosed in our 10-K. We will also discuss certain non-GAAP financial measures concerning our performance during today's call. You can find the reconciliation of non-GAAP financial measures in our press release, which is available on our website.
And with that, it's my pleasure to introduce Matt Schultz.
Thank you, Harry, and thank you, everyone, for joining us this afternoon. This quarter represents continued meaningful progress in CleanSpark's evolution into a digital infrastructure and data center development company. One that utilizes our heritage as energy natives, builds on the strength of our mining operations and ult...