CleanSpark, a Bitcoin miner, experienced a significant increase on Thursday following its impressive quarterly performance driven by the rising prices of Bitcoin. The company reported earnings of 58 cents per share, a major improvement from a loss of 23 cents per share the previous year. Additionally, revenue surged by 163% to $11.8 million, exceeding expectations and marking the third consecutive quarter of triple-digit growth.
The price of Bitcoin also saw a slight rebound on Thursday, ending a four-day streak of declines. During the quarter, CleanSpark expanded its operational capacity by over 60%, leading to the revenue growth according to CEO Zach Bradford. Margins also increased compared to the first quarter due to the rise in Bitcoin prices. At the end of the quarter, the company had $358 million in Bitcoin and $323.1 million in cash.
CleanSpark also announced plans to purchase two Bitcoin mining locations in Wyoming with 75 megawatts of power for $18.75 million in cash. The acquisition is expected to be completed in 45 days, and once operational, the sites will add four exahashes per second of processing power. CleanSpark intends to start construction on the facilities shortly after closing, with a possibility of expanding the sites by an additional 55 megawatts.
In terms of stock performance, CLSK stock initially surged by 6% and settled for a 1.3% gain on Thursday, closing just below its 10-day line. Shares continued to rise by 1.6% in after-hours trading