CleanSpark Files 2024 10-K: Financials & Operations Detailed

TL;DR

CLSK filed its 2024 10-K. Shows financials, acquisitions, and credit agreements. Check it out.

AI Summary

CleanSpark, Inc. filed its 10-K for the fiscal year ending September 30, 2024, reporting on its financial performance and business operations. The company, formerly known as SmartData Corp, is incorporated in Nevada and operates in the finance services sector. Key financial events and agreements mentioned include the Western Alliance Bank Credit Agreement and the Tennessee Acquisition. The filing also details various equity securities and their associated periods.

Why It Matters

This 10-K filing provides investors and stakeholders with a comprehensive overview of CleanSpark's financial health, strategic initiatives like acquisitions, and potential risks for the fiscal year 2024.

Risk Assessment

Risk Level: medium — The filing details various financial instruments, acquisitions, and credit agreements, which inherently carry financial and operational risks for a company in the finance services sector.

Key Numbers

• 2024-09-30 — Fiscal Year End (Reporting period for the 10-K)
• 2023-10-01 — Fiscal Year Start (Beginning of the reporting period)

Key Players & Entities

• CleanSpark, Inc. (company) — Filer of the 10-K
• 2024-09-30 (date) — Fiscal year end
• SmartData Corp (company) — Former company name
• Western Alliance Bank Credit Agreement (company) — Financial agreement
• Tennessee Acquisition (company) — Business acquisition

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share CLSK The Nasdaq Stock Mar
• $165.24 — of common stock at an exercise price of $165.24 per whole share CLSKW The Nasdaq St

Filing Documents

• clsk-20240930.htm (10-K) — 5022KB
• clsk-ex4_1.htm (EX-4.1) — 46KB
• clsk-ex19_1.htm (EX-19.1) — 128KB
• clsk-ex21_1.htm (EX-21.1) — 39KB
• clsk-ex23_1.htm (EX-23.1) — 3KB
• clsk-ex23_2.htm (EX-23.2) — 4KB
• clsk-ex31_1.htm (EX-31.1) — 14KB
• clsk-ex31_2.htm (EX-31.2) — 14KB
• clsk-ex32_1.htm (EX-32.1) — 12KB
• img108987122_0.jpg (GRAPHIC) — 213KB
• 0000950170-24-132565.txt ( ) — 22414KB
• clsk-20240930.xsd (EX-101.SCH) — 2867KB
• clsk-20240930_htm.xml (XML) — 4542KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 38 Item 1C. Cybersecurity 38 Item 2.

Properties

Properties 39 Item 3.

Legal Proceedings

Legal Proceedings 39 Item 4. Mine Safety Disclosures 39 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40 Item 6. [Reserved] 41 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 59 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 60 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 63 Item 9A.

Controls and Procedures

Controls and Procedures 63 Item 9B. Other Information 65 Item 9C. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 65 PART III Item 10. Directors, Executive Officers and Corporate Governance 66 Item 11.

Executive Compensation

Executive Compensation 66 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 66 Item 13. Certain Relationships and Related Transactions, and Director Independence 66 Item 14. Principal Accountant Fees and Services 66 PART IV Item 15. Exhibit and Financial Statement Schedules 67 2

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains certain statements that are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements may include terminology such as "aim," "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would," and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or comparable terminations. These forward-looking statements include, but are not limited to, statements regarding future operating results, potential risks pertaining to these future operating results, future plans or prospects, anticipated benefits of proposed (or future) acquisitions, dispositions and new facilities, growth, the capabilities and capacities of business operations, the remediation of the material weaknesses in our internal control over financial reporting, any financial or other guidance, expected capital expenditures and all statements that are not based on historical fact, but rather reflect our current expectations concerning future results and events. These forward-looking statements are based on management's current expectations, estimates, forecasts, and projections about our business and the industry in which we operate, as well as the economy, trends and other future conditions, are subject to significant risks and uncertainties, and are subject to changes based on various factors, some of which are beyond our control. Therefore, we can give no assurance that the results implied by these forward-looking statements will be realized. Furthermore, the inclusion of forward-looking statemen

Business

Item 1. Business As used in this Annual Report on Form 10-K, the terms "we," "us," "our," the "Company," "CleanSpark, Inc." and "CleanSpark" mean CleanSpark, Inc. and its consolidated subsidiaries, unless otherwise indicated. Dollar amounts presented in this Annual Report on Form 10-K are presented in thousands, except per share amounts, bitcoin price, and information set forth under the heading "Bitcoin Mining Operations". Overview CleanSpark is a bitcoin mining company. We independently own and operate a large portfolio of data centers across the United States with locations in Georgia, Tennessee, Mississippi and Wyoming. As of October 31, 2024, we have with 676 megawatts ("MW") of developed capacity and has 50 MWs of hosted machines in New York, which supports approximately 31.5 exahash per second ("EH/s") of bitcoin mining computational power. We are currently developing an additional 211.5 MW across the portfolio, which is expected to support approximately 50 EH/s of mining capacity. We do not host miners for any other companies. A partner in Massena, NY, hosts 1.5 EH/s for us. However, following a non-renewal, the agreement governing such hosting of our miners is scheduled do expire on January 1, 2025 and we plan to move all operational capacity to wholly owned sites to maximize operational efficiency. We design our proprietary data center infrastructure to operate at high uptime and efficiency in support of bitcoin, the world's most important digital commodity and an essential tool for financial independence and inclusion. Through CleanSpark and our wholly owned subsidiaries, we have operated in the bitcoin mining sector since December 2020. Business Activity Bitcoin mining is our principal revenue generating business activity. As of September 30, 2024, we operated approximately 188,500 bitcoin mining machines, with a hashrate capacity of approximately 27.6 EH/s and a fleetwide efficiency of 21.94 joules per terahash ("J/TH"). In fiscal year 2024,

View Full Filing

View this 10-K filing on SEC EDGAR