CleanSpark $433M Bitcoin Loss Exposes Sandersville Funding Gap

CleanSpark posted a $239.8 million GAAP loss for the fiscal third quarter after a swing in Bitcoin valuations of roughly $433 million. The company had reported a $257.4 million profit in the same quarter a year earlier.

Revenue for the three months ended June 30 was $138.0 million, down 30.5% from $198.6 million a year earlier.

Two valuation lines drove most of the earnings reversal. A $268.7 million fair-value gain a year earlier became a $116.3 million loss this quarter, a $384.9 million reversal. A $31.4 million gain on Bitcoin collateral became a $16.5 million loss, a $47.9 million reversal. Those two shifts totaled $432.8 million, about 87% of the net-income change by magnitude. The valuation items are reported pre-tax, and other expenses and taxes changed between periods.

CleanSpark used $409.3 million in cash from operations in the first nine months of its fiscal year. Its March filing showed $297.0 million of operating cash use through six months, implying the fiscal third-quarter increment was about $112.3 million. The company recognizes mined Bitcoin as noncash revenue and records proceeds from later Bitcoin sales in investing activities, so operating cash use does not capture cash generated when mined coins are subsequently sold.

At June 30, CleanSpark held $202.6 million in cash, $920.8 million in current assets, $155.8 million in current liabilities and $1.78 billion in long-term debt. The company’s internally defined HODL value was $814.9 million, which included $592.1 million of current Bitcoin, $122.2 million of noncurrent Bitcoin and a $100.6 million collateral receivable.

The Sandersville contract is a 175-megawatt, 20-year lease tied to the company’s AI strategy. Phased deliveries are expected to begin in the fourth quarter of 2027. The quarterly filing noted the project’s “anticipated equity portion” was fully funded. The filing added the company “still needs substantial additional capital and expects significant added indebtedness, potentially alongside equity or equity-linked financing.” The company has not disclosed a rent-commencement schedule or timing for full delivery.

Long-term debt was $1.788 billion at March 31 and $1.780 billion at June 30, indicating most of the existing long-term debt predated the July lease agreement. The filings do not specify sources or schedules for the additional capital and debt the company expects to raise as it moves forward with Sandersville.