CleanSpark is accelerating its transformation from a Bitcoin mining company into a broader digital infrastructure platform after signing a 20-year, $6.6 billion triple-net lease for its Sandersville data center development with a high investment-grade tenant. The company has also fully funded the anticipated equity portion of the project and prepaid for the long-lead equipment required to meet its targeted ready-for-service date.
The agreement represents a significant step in CleanSpark’s strategy to commercialize its power and data center portfolio beyond Bitcoin mining. Management said the Sandersville lease is designed to provide long-term, durable cash flows while reducing project-level economic risk.
CleanSpark controls a portfolio of more than 1.8 GW of power, land and data centers across the U.S. The company is positioning those assets for opportunities spanning Bitcoin mining, high-performance computing and artificial intelligence infrastructure, giving it multiple potential ways to monetize its access to grid-connected power.
The pivot is occurring against a challenging environment for Bitcoin mining. Fiscal third-quarter revenue declined 30.5% year-over-year to $138 million, while CleanSpark reported a net loss of $239.8 million compared with net income of $257.4 million a year earlier. Adjusted EBITDA was negative $113 million compared with positive $377.7 million in the prior-year quarter.
A significant portion of the earnings volatility came from the company’s Bitcoin holdings. CleanSpark recorded a $116.3 million loss on the fair value of Bitcoin during the quarter, compared with a $268.7 million gain a year earlier. It also recorded a $16.5 million loss related to Bitcoin collateral.
Despite the weaker mining results, CleanSpark ended June with $202.6 million in cash and $814.9 million in Bitcoin. Total assets were $2.7 billion, working capital was $761 million, and long-term debt totaled approximately $1.8 billion.
The Sandersville project therefore represents an important diversification initiative for CleanSpark. By converting a portion of its power infrastructure into a long-duration leased data center asset, the company is seeking to establish cash flows that are less directly exposed to Bitcoin prices and mining economics.
KEY QUOTES:
“We continue to successfully execute on our strategic evolution to a diversified digital infrastructure platform. Our recently announced Sandersville lease offers an ideal combination of long-term, durable cash flows and de-risked economic returns for our shareholders.”
Matt Schultz, CEO and Chairman of CleanSpark
“By fully funding our anticipated equity commitment for Sandersville and securing the long-lead equipment required to meet the project ready-for-service schedule, we have materially de-risked execution while preserving balance sheet flexibility.”
“Despite currently challenging bitcoin mining economics, we have a portfolio of scarce, grid-connected power assets and multiple pathways to commercialization.”
Gary Vecchiarelli, President and CFO of CleanSpark
