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SEC filingBitcoin mining revenue surged 91% QoQ driven by fleet expansion and higher bitcoin prices, though energy costs rose 133%.
For the three months ended June 30, 2025, CleanSpark reported bitcoin mining revenue of $198.6 million, a 91% increase from $104.1 million in the same period last year. The growth was driven by a 58% expansion in miners in service (241,227 vs 152,505) and a higher average bitcoin price ($98,736 vs $65,891). Cost of revenues (exclusive of depreciation) rose 99% to $90.1 million, primarily due to a 133% increase in energy costs to $89.9 million, reflecting higher power prices and increased operational scale. Net income was $257.4 million compared to a net loss of $236.2 million in the prior year, largely due to a $268.7 million gain on fair value of bitcoin (vs a $48.3 million loss). Adjusted EBITDA improved to $377.7 million from a loss of $12.7 million.
Owned facilities contributed all bitcoin mining revenue in Q3 FY2025, as hosted operations ceased. In owned facilities, bitcoin mined increased to 2,012 from 1,435, while energy cost per kWh rose to $0.056 from $0.048. The direct cost to mine one bitcoin (including energy and non-energy costs) was $44,806, up from $26,945, representing 45.4% of average revenue vs 40.8% in the prior year. Including miner depreciation, the cost was $86,428 per bitcoin (87.5% of revenue). Hosted facilities had no activity in Q3 FY2025; in Q3 FY2024, hosting fees were $6.5 million and profit-sharing fees $0.9 million.
Management expects to continue increasing computing power through 2025 and beyond, expanding infrastructure in Tennessee and evaluating strategic acquisitions. The company launched an institutional-grade trading function in April 2025 to balance monetization and long-term holdings, including derivative strategies. No specific quantitative guidance was provided.
As of June 30, 2025, CleanSpark reported cash and cash equivalents of $34.6M and restricted cash of $3.5M, a significant decrease from $121.2M and $3.1M, respectively, at September 30, 2024. The Company's most significant liquid asset is its bitcoin holdings, which totaled 10,075 BTC with a fair value of $1.08B. Of this, $877.1M is classified as current and $202.7M as noncurrent, reflecting a strategic decision to hold a portion of bitcoin long-term. The Company also holds a receivable from bitcoin collateral of $271.5M related to its Coinbase line of credit. Total debt stood at $820.3M, net of $14.8M in debt discounts, up from $66.0M at fiscal year-end, driven primarily by the issuance of $650M in 0% convertible senior notes due 2030 and draws on the expanded Coinbase line of credit. Stockholders' equity increased to $2.15B from $1.76B, bolstered by net income of $365.4M and equity offerings.
The Company has $57.7M in contractual future payments as of June 30, 2025. This includes $30.7M in open commitments for construction and development of new mining locations and $27.0M remaining on a $165M contract for modular immersion data centers. Additionally, the Company has outstanding deposits on miners and mining equipment of $196.2M recorded as long-term assets. A significant contingent exposure exists regarding U.S. import tariffs: the Company has begun receiving invoices from U.S. Customs and Border Protection asserting Chinese origin on certain miners imported from April 2024 through June 2024. If CBP were to successfully apply these tariffs to all imported miners from April 2024 forward, total liability could reach approximately $185M, excluding statutory interest. The Company believes the allegations are without merit and has not recorded a provision.
During the nine months ended June 30, 2025, CleanSpark deployed significant capital toward growth and shareholder returns. The Company invested $666.1M in property and equipment additions, primarily for miners ($544.4M). In connection with the $650M convertible note issuance, the Company used $145.0M to repurchase 11.8M shares of common stock in privately negotiated transactions. The Company also paid $90.4M for capped call transactions to reduce potential dilution from the notes. Preferred stock dividends of $10.7M were accrued during the period. Financing activities provided $696.5M, including $812.2M in loan proceeds (net of issuance fees) and $186.8M from equity offerings under the ATM program, partially offset by $58.5M in loan repayments.
The Company operates a single reportable segment: bitcoin mining. Revenue is entirely derived from bitcoin mining, with one mining pool operator (Foundry Digital) representing 100% of revenue for the nine months ended June 30, 2025 and 2024. For miner procurement, Bitmain Technologies supplied 97% of miners and Canaan U.S. Inc supplied 3% during the nine months ended June 30, 2025. The Company operates data centers across Georgia (14), Mississippi (5), Tennessee (12), and Wyoming (2) as of June 30, 2025, with recent acquisitions expanding its footprint in Tennessee and Georgia.