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SEC filingBitcoin mining revenue fell 25% QoQ due to lower BTC price and global hashrate share, while AI/HPC costs drove a net loss.
For the three months ended March 31, 2026, CleanSpark reported bitcoin mining revenue of $136.4 million, a 25% decrease from $181.7 million in the prior-year period. The decline was driven by a lower average bitcoin price ($75,989 vs $92,870) and fewer bitcoin mined (1,795 vs 1,957), as global hashrate growth outpaced the company's hashrate increase, reducing its network share. Cost of revenues (exclusive of depreciation) decreased 4% to $81.7 million, primarily due to slightly lower energy costs ($81.6 million vs $82.7 million). However, energy expense as a percentage of bitcoin mining revenue rose to 59.9% from 46.0%, reflecting the lower revenue base. The direct cost to mine one bitcoin (including energy only) was $45,411, up from $42,667, and when including miner depreciation, it reached $103,440, well above the average revenue per bitcoin of $75,827. Net loss widened to $378.3 million from $138.8 million, largely due to a $224.1 million loss on fair value of bitcoin (vs $127.7 million loss) and a $38.8 million loss on bitcoin collateral. Adjusted EBITDA was negative $241.2 million versus negative $57.8 million.
Bitcoin mining remains the sole revenue-generating segment, with no revenue from AI and HPC hosting yet. The company is actively developing sites for AI/HPC, incurring higher professional fees ($9.7 million, up 224%) and payroll expenses ($24.9 million, up 63%) related to these initiatives. The mining fleet's average hashrate was 47.3 EH/s, up from 42.4 EH/s, but its share of global hashrate fell to 4.66% from 5.08%. The company held 11,920 bitcoins as of March 31, 2026, with a fair value of $813.2 million.
Management expects to continue increasing computing power through 2026 and beyond, expanding infrastructure at owned sites and pursuing regional expansion. The company launched a Digital Asset Management (DAM) treasury strategy, generating $4.0 million in proceeds from premiums during the quarter. No formal guidance was provided, but the company believes existing cash and bitcoin will satisfy anticipated requirements for the next 12 months. The shift toward AI/HPC hosting is a strategic priority, though no revenue timeline was given.
As of March 31, 2026, CleanSpark reported cash and cash equivalents of $260.3 million, a significant increase from $43.0 million at September 30, 2025. This was primarily driven by $1.13 billion in proceeds from debt issuance, net of fees, partially offset by $460.0 million used for share repurchases. The company's bitcoin holdings, classified as current and non-current, totaled $813.2 million (11,920 bitcoin) at fair value, down from $1.19 billion at the prior year-end, reflecting a net loss on fair value of bitcoin of $470.9 million for the six-month period. Total assets stood at $2.91 billion. Total debt, net of discounts and issuance costs, was $1.79 billion, up from $821.2 million, driven by the issuance of $1.15 billion in 0% convertible senior notes due 2032. Stockholders' equity decreased to $986.2 million from $2.18 billion, primarily due to a net loss of $757.1 million and $463.2 million in treasury stock purchases.
Unconditional contractual future obligations not recorded on the balance sheet totaled $56.4 million as of March 31, 2026. The largest components were $34.7 million for construction in progress and $17.0 million for modular immersion data centers. The timing of these obligations is heavily weighted toward the near term, with $49.2 million due within one year. The company also disclosed a contingent liability related to U.S. importation tariffs. Invoices from U.S. Customs and Border Protection assert Chinese origin import tariffs on certain miners, with a potential total liability of approximately $130.0 million, not including interest. The company is contesting these claims and has not recorded a provision, as a loss is not deemed probable.
Capital allocation during the period was dominated by a significant debt issuance and share repurchase program. In November 2025, the company issued $1.15 billion in 0% convertible senior notes due 2032, using approximately $460.0 million of the net proceeds to repurchase 30.6 million shares of its common stock in privately negotiated transactions. A one-time deemed dividend of $30.0 million was paid to holders of Series A Preferred Stock following an amendment to extinguish their quarterly dividend feature. Investing activities included $89.3 million in combined payments for miners, mining equipment, and fixed assets, alongside $62.1 million for asset acquisitions in Texas. Proceeds from the sale of bitcoin and option settlements provided $342.8 million in cash from investing activities.
The company operates as a single operating and reportable segment focused on bitcoin mining. The Chief Executive Officer serves as the chief operating decision maker and uses consolidated net (loss) income to evaluate performance and allocate resources. All of the company's long-lived assets are located in the United States. Revenue is entirely derived from bitcoin mining, with one mining pool operator, Foundry Digital, representing 100% of revenue for the six months ended March 31, 2026.