0001193125-26-039538
SEC filingBitcoin mining revenue rose 12% YoY to $181.2M, but net loss of $378.7M driven by $246.8M loss on bitcoin fair value.
For the three months ended December 31, 2025, CleanSpark reported bitcoin mining revenue of $181.2 million, a 12% increase from $162.3 million in the prior-year period. The growth was driven by a higher average bitcoin price of $99,697 (vs. $83,443), partially offset by a decrease in bitcoin mined to 1,817 (vs. 1,945). Cost of revenues (exclusive of depreciation) rose 36% to $95.6 million, primarily due to a 51% increase in energy costs to $95.5 million, reflecting expanded operations and higher average power prices ($0.056/kWh vs. $0.049/kWh). Energy expense as a percentage of bitcoin mining revenue increased to 52.7% from 40.4%. The company reported a net loss of $378.7 million compared to net income of $246.8 million in the prior year, largely due to a $246.8 million loss on fair value of bitcoin (vs. a $218.2 million gain) and a $103.6 million loss on bitcoin collateral. Depreciation and amortization increased 61% to $106.3 million, driven by a larger miner fleet. Adjusted EBITDA was negative $295.4 million versus positive $321.6 million in the prior year.
CleanSpark operates a single reportable segment: bitcoin mining. The company mined 1,817 bitcoin at owned facilities during the quarter, with an average cost to mine (direct energy cost) of $52,518 per bitcoin, up from $34,011 in the prior year. Including miner depreciation, the direct cost rose to $104,727 per bitcoin, exceeding the average revenue per bitcoin of $99,510. The company's average hashrate increased to 47.1 EH/s from 39.1 EH/s, while its share of global hashrate declined to 4.46% from 4.87%. The company exited hosted mining operations, with no bitcoin mined at hosted facilities in the current quarter (vs. 128 in prior year). AI and HPC hosting activities have not yet generated material revenue.
Management expects to continue increasing computing power through 2025 and beyond, expanding infrastructure at owned sites in Tennessee, Georgia, Mississippi, and Wyoming, and pursuing regional expansion opportunities. The company has acquired property in Texas and South Dakota for future development. It plans to continue its Digital Asset Management treasury strategy, including bitcoin-linked derivatives, to enhance liquidity and generate income. Management believes existing cash, bitcoin, and future bitcoin generation will be sufficient for the next 12 months, but may require additional capital for growth or acquisitions. No specific quantitative guidance was provided.
As of December 31, 2025, CleanSpark reported cash and cash equivalents of $458.1 million, a significant increase from $43.0 million at September 30, 2025. This increase was primarily driven by $1.13 billion in net proceeds from the issuance of the 2032 Convertible Notes, partially offset by $460.0 million used for share repurchases. The Company also holds $1.002 billion in bitcoin at fair value (11,452 BTC), of which $830.1 million is classified as current and $171.9 million as noncurrent. Total debt stood at $1.79 billion, net of $33.2 million in unamortized discounts and issuance costs, up from $821.2 million at fiscal year-end. The debt increase reflects the new $1.15 billion 2032 Notes and the existing $650.0 million 2030 Notes. Stockholders' equity decreased to $1.38 billion from $2.18 billion, primarily due to a net loss of $378.7 million and $463.3 million in treasury stock purchases.
The Company disclosed $144.4 million in unconditional contractual future obligations not recorded on the balance sheet as of December 31, 2025. The largest component is $68.9 million for the purchase of bitcoin miners, all due within one year. Construction in progress commitments total $54.1 million, with $49.9 million due within one year. Additionally, the Company has $17.0 million in commitments for modular immersion data centers and $3.4 million for software contracts. A significant contingent liability exists related to U.S. importation tariffs: CBP has asserted Chinese-origin tariffs on certain miners imported from April 2024 through June 2024. If CBP were to successfully assert these tariffs on all imported miners from April 2024 forward, total liability could reach approximately $185.0 million, excluding statutory interest. The Company believes the allegations are without merit and has not recorded a provision.
During the quarter, CleanSpark executed significant capital allocation actions. The Company issued $1.15 billion in 0% convertible senior notes due 2032, with net proceeds of approximately $1.13 billion. Of this, $460.0 million was used to repurchase 30.6 million shares of common stock in privately negotiated transactions. The Company also repaid $251.1 million in total debt principal during the quarter, including $250.5 million on lines of credit. Capital expenditures totaled $55.4 million, comprising $18.5 million in payments on miners and mining equipment (including deposits) and $36.9 million in purchases of fixed assets. No dividends were paid on Series A Preferred Stock during the quarter (compared to $5.1 million in the prior year period).
CleanSpark operates as a single reportable segment focused on bitcoin mining. All long-lived assets are located in the United States, with data centers in Georgia, Tennessee, Mississippi, and Wyoming, and additional properties under development in South Dakota and Texas. Bitcoin mining revenue, net, was $181.2 million for the quarter, up from $162.3 million in the prior year period. One mining pool operator, Foundry Digital, represented 100% of revenue. The Company had one significant supplier of bitcoin miners: 16287042 Canada Inc. represented 98% of purchases during the quarter, compared to Bitmain Technologies at 94% in the prior year period.
No Consolidated Statements of Cash Flows data supplied. Balance sheet indicates significant cash growth but source (operations vs financing) cannot be determined. Income statement shows large net loss driven by bitcoin fair value adjustments; working capital and tax items noted but unlinked to cash flows. Capex intensity and FCF coverage unavailable.