CleanSpark reports $138M revenue, misses $140M estimate

CleanSpark shares dropped 5.5% on Thursday after the Bitcoin miner reported $138 million in quarterly revenue, narrowly missing Wall Street’s consensus estimate of $140 million. The stock slid to $12.40 in after-hours trading, adding to a 20% decline over the past month as investors reassess crypto mining stocks amid rising operational costs and lower Bitcoin prices.

The miss reflects broader challenges in the sector. CleanSpark, which operates mining facilities across the U.S., has expanded aggressively in recent years, buying up distressed assets and securing cheap power deals. But rising energy prices, higher interest rates, and a 20% drop in Bitcoin’s price this quarter have squeezed margins. The company’s strategy of scaling up quickly now faces scrutiny as revenue growth struggles to keep pace with costs. Analysts had expected CleanSpark to benefit from the Bitcoin halving in April, which typically reduces mining rewards and boosts efficiency for well-capitalized firms. Instead, the event coincided with weaker-than-expected performance.

CleanSpark reported revenue of $138 million for the quarter ended June 30, down 12% from the previous quarter. Net income fell to $18 million from $32 million, hurt by higher electricity expenses and depreciation from new hardware. The company still added 3.3 exahashes of mining capacity during the period, but revenue per exahash declined as Bitcoin’s price slipped below $60,000. CEO Matt Schultz defended the results, calling the quarter “a period of strategic investment.” Still, investors aren’t convinced. CleanSpark’s stock is down nearly 40% year-to-date, underperforming peers like Riot Platforms and Marathon Digital.

What happens next may hinge on Bitcoin’s price and CleanSpark’s ability to cut costs. The company plans to further consolidate its operations by shutting down older, less efficient mining machines. It’s also betting on power cost advantages in states like Georgia and Texas, where energy prices remain relatively low. Analysts at JPMorgan recently downgraded CleanSpark, warning that without a sustained Bitcoin rally, the stock could face more pressure. For now, the market is signaling that scale alone isn’t enough—profits matter more.