CleanSpark, Inc.

Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to our conference call. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question, again, press star one. Thank you. And at this time, I would like to turn the floor over to Brittany Moore, Director of Investor Relations.

Thank you, Krista, and welcome to CleanSpark's fiscal full-year financial results call covering the period October 1st, 2023 through September 30th, 2024. Our press release was issued about 30 minutes ago and is available on our website at cleanspark.com. Today's call is also being webcast and a replay and transcript will be available on our website. On the call with me are Zach Bradford, our Chief Executive Officer, and Gary Beccarelli, our Chief Financial Officer. Keep in mind that some of the statements we make today are forward-looking and based on our best view of the world and our business as we see them today. The statements and information provided remain subject to the risk factors disclosed in our most recently filed annual report. We will also discuss certain non-GAAP financial measures concerning our performance during today's call. You can find the reconciliation of non-GAAP financial measures in our press release, which is available on our website. And with that, it is my pleasure to turn the call over to Zach.

Thank you, Brittany, and good afternoon, everyone. We appreciate your interest in our company as we share the results of a pivotal and transformative year for CleanSpark. The year marked the culmination of several years of strategic planning, preparation, and execution to fully leverage the halving event. We emerged with an optimal combination of power contracts, infrastructure, mining fleet, Bitcoin hodl, and organic growth pipeline as we enter the next phase of the cycle. Our financial performance this year reflects a sustained growth trajectory. with more than 378.9 million in revenue generated. That's a substantial increase from the 164.8 million reported last fiscal year. This year-over-year growth, over 125%, demonstrates our precise execution of plan before and after the halving that occurred midway through our fiscal year. Our adjusted EBITDA of 245.8 million for the year also showed impressive growth. That's an increase of 220.8 million or 882% growth over last year, underscoring the success of our infrastructure-first expansion strategy and its focus on fleet efficiency and operational excellence. As a result, we produced our strongest year of financial performance to date, solidifying a track record of effective execution and keeping promises to shareholders. Reflecting on the past year, our growth aligns closely with the clear strategic priorities and objectives that we've articulated since our pivot to Bitcoin mining. CleanSpark has prioritized infrastructure at its core foundation, putting us in the best position to source miners to optimize fleet efficiency and deploy new hash rate into production in the most capital efficient manner. A clear example of this strategy was the Bitmain order that we placed in January 2024. That order included 60,000 units and a strategic option to purchase another 100,000 units at the same low fixed price. This cost certainty allowed the team to focus on building and acquiring the underlying infrastructure that supported our targeted growth. Between our delivery schedule and growth in operational hash rate, the plan worked seamlessly. and allowed us to reach 27.6 exahash per second at the end of September and 33.5 exahash where we stand today. This keeps us on a path to achieve our next milestone of 37 exahash per second this month. I want to discuss the way that we grew our infrastructure to support this incredible volume. There are three distinct infrastructure growth engines. Greenfield development, organic expansion, and opportunistic acquisitions. Each pathway presents unique opportunities and challenges, yet our team has repeatedly proven its ability to achieve or exceed our goals across this strategy. I'd like to elaborate on these three drivers and emphasize their crucial role in advancing our strategic vision, positioning CleanSpark as the industry's leading operator. Our goal is to establish the CleanSpark way as the benchmark of excellence across every dimension. Growth, scale, efficiency, capital stewardship, community engagement, and employee satisfaction, uptime, and more. We aim to set CleanSpark apart as a name synonymous with innovative and cutting edge performance across all measures that flow through to the bottom line. Over the past 12 months, a rapid expansion has evolved our initial footprint into a robust portfolio of geographically diverse mining assets in Georgia, Wyoming, Tennessee, Mississippi, and New York. This regional structure maximizes operational efficiency, creating momentum in each local market, and disperses our mining assets in such a way as to harden us against extreme weather, price volatility in energy markets, and grid instability. Moreover, we've taken the front door approach of directly engaging with the communities in which we work and live that we templated in Georgia and tailored it to other rural communities that we call home. Allow me to highlight some other milestones we've reached over the past year. We've added over 425 megawatts to our operational power capacity. bringing our total portfolio to over 726 megawatts as of today. This expansion aligns with a threefold increase in our total hash rate, which now stands at more than 33 exahash per second, and putting us well on our way to achieve the goal of 37 exahash per second this month. This is a substantial leap from last year, when we were celebrating surpassing just 9.6 exahash per second. Our track record of execution and focus on delivering on our commitments has been instrumental in driving this performance, and we expect to repeat it in 2025 as we look to exceed one gigawatt of contracted capacity across our portfolio. With our infrastructure first approach to growth, we prioritize resource allocation across our three primary growth engines. We optimize every aspect of our operations through cutting edge technology upgrades, and ensure every new facility aligns with the exacting standards of our vertically integrated business model of wholly owned, self-operated sites. Emblematic of this commitment, I'd like to remind everyone that our coin mint contract is scheduled to expire shortly, making Cleanspark's operations 100% owned and operated by the end of next quarter. Our growth trajectory has been remarkable, but what I'm most proud of is that we achieve this expansion with the highest levels of efficiency. At the core of our approach is a philosophy that extends beyond achieving the lowest tools per terahash metric for our fleet or the best kilowatt hour price. It represents a commitment to integrity, operational excellence, and cost management that drives every decision. Growth is not solely about increasing capacity, but consistently optimizing our hardware, processes, and infrastructure to maximize output while conserving resources, ultimately delivering higher returns on investment. Our current fleet efficiency now stands at 19 joules per terahash and is significantly lower than our fleet average of 28.4 joules per terahash from September of last year. This efficiency continues to improve as we transition into the next more methodical phase of our expansion. For us, Cost reduction goes beyond mere budgeting. It is a discipline that enables us to reinvest in growth while remaining competitive in an industry where success is designed to continually get even more difficult. Operational excellence converges with these elements, ensuring that every facet of our operations from power management to employee workflows performs to the highest standards. This commitment, allows us to pursue an ambitious growth plan without compromising on efficiency or our core values, firmly establishing CleanSpark as a leader in our field. We've achieved this level of growth through a balanced approach across our three growth avenues, greenfield development, organic expansion of existing sites, and strategic acquisitions. While our acquisition strategy may receive more attention, we remain deeply committed to greenfield development. identifying and building new sites with the talent and expertise we've developed, particularly at our newest markets. In Wyoming, we are currently contracted at 75 megawatts in 2025 and have the potential of adding several hundred more. On the M&A front, we are realizing the rewards of our early countercyclical capital allocation. As noted, we began preparations for the halving over 24 months ago. anticipating that less efficient operators would face stark choices about their future. This foresight allowed us to position ourselves to capitalize on acquisition opportunities, consolidating over 178 megawatts in private asset acquisitions, including nine sites acquired in September alone. Notably, after the end of the year in October, we closed the grid acquisition, which included 68 megawatts of developed infrastructure in Tennessee and over 400 megawatts of identified upside expansion opportunity. As we move forward, we are more committed than ever to our focus on Bitcoin mining and setting industry benchmarks in this rapidly evolving sector. Through deliberate prioritization, efficient infrastructure acquisition, and a reliable pipeline of state-of-the-art equipment through our purchase agreements, we've established a process that has paved a path to reach our target of achieving 37 exahash per second by year end. With access to both power and hardware secured and a rigorously vetted growth strategy, we have a strong track record of execution that aligns seamlessly with our vision for 2025 and beyond. This strategy, grounded in countercyclical investment and the use of multiple avenues for efficient growth depending on current market conditions, has laid the foundation for our next milestone. a 50x a hash per second in 2025, while insulating our growth plans from the cyclical nature of the industry. Having overcome the challenges of finding the right approach and developing a winning formula, we stand ready to sustain our growth, even as we've entered a bull market, which will have the potential to inflate industry asset prices and may lead our competitors to make decisions that could ultimately prove to be capital destructive. As a result, We may turn our focus away from additional consolidation and towards maximizing the organic growth potential within our existing portfolio, providing us with great confidence and visibility on our journey to 50x a hash per second and beyond. Our decision-making process will be guided by delivering ROI to shareholders as we evaluate the options available. Before I finish, I'll comment on the recent trends that dominate conversations about our sector. While some competitors have diversified into AI and high performance computing, we remain committed to Bitcoin mining as a vertically integrated pure play operation. As we stay focused on mining Bitcoin, we start generating revenue at Greenfield sites in as little as six months. By contrast, a move into the AI or HPC space could extend that timeline significantly. potentially up to three to four years before our investors would see comparable high-margin revenue. This shorter payback period to revenue in Bitcoin mining underlines the value in our commitment as we deliver returns to our shareholders above all else. We will evaluate new opportunities on a case-by-case basis, but we believe in remaining focused on our core strength, at least for now. This conviction stems from the fact of Bitcoin's finite supply. which we see as a long-term support for our disciplined approach. In our view, each dollar invested in non-core areas represents a potential distraction at this phase in our growth. As we rinse and repeat our playbook into the future, we strengthen our path towards a dominant position in the mining space. In summary, we are extremely pleased with the results achieved this quarter and fiscal year. As we look ahead, we are confident in our path to growth. We are on a track to surpass 50 ExaHash in 2025 with plans to continue growing and expanding our operations. Our vision goes beyond reaching this milestone. It encompasses building a business that is scalable, resilient, and repeatable. Our growth strategy is rooted in operational efficiency, driving strong margins and consistent performance. We've successfully delivered similar results before, And we are committed to achieving sustainable growth again. In 2025, we will focus on increasing our installed hash rate and boosting our monthly Bitcoin production and always look for any opportunities to drive revenue and margin expansion. As we look ahead, timing is everything. And we position ourselves to fully capitalize on the current bull market. We're uniquely positioned with our power assets and mining Bitcoin represents the best way to monetize them. especially in favorable market conditions like we see today. During this time, we'll continue to optimize cash flow and explore diverse sources of new capital to deliver value for our shareholders, but never at the expense of our core operations. Finally, I'd like to extend my heartfelt appreciation to the team at CleanSpark. Their relentless effort, creativity, and commitment are the engines behind all we achieve. Each success we celebrate is a direct result of their dedication, and it's a privilege to work alongside such inspiring professionals. With that, I'd now like to turn the time over to Gary to review the quarter and fiscal full-year financial results in greater detail.