CleanSpark, Inc.

Good afternoon. My name is Jeannie and I will be your conference operator today. At this time, I would like to welcome everyone to the CleanSpark fiscal year third quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. 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. If you would like to withdraw your question, press star 1 again. Thank you. Harry, you may begin your conference.

Thanks, Jeannie. And thank you for joining us today for the third quarter fiscal year financial results for CleanSpark, America's Bitcoin miner, covering the period April 1st, 2025 through June 30th, 2025. Our press release was issued about 30 minutes ago and is available on our website at www.cleanspark.com. Additionally, the 10-Q will be filed shortly. 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 Vaccarelli, 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 and 10-Q. 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's my pleasure to turn the call over to Zach.

Thanks, Harry, and good afternoon. I'm pleased to welcome you to our call reviewing CleanSpark's fiscal third quarter 2025 performance. This quarter was our most successful to date across a multitude of metrics and reaffirms the strength of our strategy. The stage is set for continued growth supported by world-class operations, a strong balance sheet, and supportive macro and policy tailwinds. We'll sustain Bitcoin's strength with a contributing factor. Our performance is grounded in strategic discipline and the tireless efforts of our entire team. Behind our record-setting revenue and earnings per share of $0.90 is billions of dollars of investments across four states, over one gigawatt of contracted power, and at today's price, approximately $1.5 billion worth of Bitcoin. As America's Bitcoin miner, we operate with high standards and set aggressive yet achievable targets. Our achievement of 50x a hash of operational hash rate was a key contributor to our outstanding results. and a milestone made possible only through disciplined execution. Our third quarter revenue was nearly $200 million, up 94% compared to the same period last year, and more than 9% over our prior quarter. We achieved earnings per basic share of 90 cents thanks to healthy gross margins of 54.6%. Importantly, we produced 2,012 Bitcoin, and our treasury grew in value to approximately $1.08 billion by the end of the quarter, an increase of more than $100 million since last quarter. This was driven by both production and Bitcoin price appreciation, all with self-funding operations, further validating our prudent accumulation strategy. Our total Bitcoin in treasury stood at 12,608 at the close of the quarter, demonstrating our escape velocity. allowing us to scale without relying on a single share of equity funding since early November 2024. June 30th marked the highest quarterly close for Bitcoin in its history, driven by global adoption, rising institutional investment, and the maturation of the asset class. Additionally, we remain the only large-scale holder to have mined every Bitcoin we hold in Treasury. We do this because we can generate Bitcoin below spot market rates. Our cost for Bitcoin in the third quarter was $44,806, which was far below the average spot price of approximately $98,500 during the same period. Turning to our fully self-operated infrastructure, our team met our 50th to hash target on June 24th. We were the first publicly traded company to reach that milestone exclusively with American infrastructure. Our fleet's average power efficiency was just over 16 joules per terahash at quarter's end, and we have continued to improve that figure. This further cements our fleet as one of the most efficient in the world. When our scale and fleet efficiency are paired with our flexible operating model, This enables us to manage towards profitability, not arbitrary power costs. Our fully contracted power portfolio comprises over one gigawatt. Importantly, we are currently utilizing about 80% of that total, leaving over 200 megawatts available for immediate expansion. In fiscal third quarter, our all-in cost per kilowatt hour is 5.6 cents, nearly half a cent lower than in the second quarter. This decrease reflects an easing of seasonal power prices as we transition from winter to spring. We also energized additional sites in our power portfolio, further improving our average power cost and demonstrating the benefits of our diversified and flexible energy strategy. Just as our fleet efficiency has improved over time, our goal remains to reduce power costs across the portfolio and growth pipeline, always with an eye towards profitability. As I mentioned, we reached 50x a hash in June, a major milestone in the history of our company. It reflects years of focused strategy, disciplined execution, and a relentless commitment to doing things the CleanSpark way. This growth wasn't accidental. It's the result of building and operating our own infrastructure from the ground up, giving us the control, resilience, and scalability to lead the industry. but we have never pursued growth for its own sake. Every new megawatt and every additional exahash has been developed with the intention of delivering long-term shareholder value and advancing our vision of becoming the global leader in Bitcoin mining, built, owned, and operated in rural America. Consider the speed at which we achieve this goal. At the end of fiscal 2024, our operational hash rate stood at 27.6 exahashes. In just nine months, we nearly doubled that figure to 50, while improving fleet efficiency and the overall operational performance. Here's how we did it. Tennessee became our second largest source of hash rate. Thanks to two acquisitions and a 60-megawatt greenfield development, it was the fastest state-level ramp-up in our history. Our growth in the state demonstrates our land and expand strategy in action. We also launched two sites in Wyoming, a state with low cost, reliable energy, and supportive leadership at the local, state, and federal levels. Leaders who understand the value of our business can deliver to their communities. While our operations in Wyoming are currently smaller than Georgia and Tennessee, we have the opportunity to evaluate hundreds of additional megawatts in the region. We also continue to optimize and expand our operations in Mississippi and Georgia. with Georgia contributing significantly to reaching our 50 exahash milestone. I want to take the time to spotlight an example of rapid execution. We closed on a new plot of land in rural Georgia in mid-May, and just five weeks later, we had immersion-cooled mining live and hashing at the site. That kind of speed to revenue is made possible by tight collaboration across our construction, deployment, operations, and growth teams. This project exemplifies our relentless focus on speed to revenue. This is just one example of how we set the industry standard every day and embody the values and mission of CleanSpark. This is CleanSpark at its best, disciplined, fast, and unified. Our team is our greatest asset, and when they execute our battle-tested playbook, we're nearly unstoppable. Looking forward. We will apply our years of experience to drive our next phase of mining and power expansion. As we shared on our last call, we moved away from time-based exahash guidance. Instead, we're focused on capturing a greater share of global hashrate as a key metric, which we believe is a more meaningful measure of our market competitiveness. At the end of fiscal 2024, we held 4.3% of global hashrate with 27.6 exash. When we hit 50 in June, our share rose to 5.6%, reflecting our ability to outpace the broader mining landscape and earn more Bitcoin over time. And we are not slowing down. We are taking steps to rapidly deliver an additional 10x a hash of operational hash rate on a cost-effective timeline. All miners required for this growth have already been secured. Nearly half of the necessary infrastructure is in place. and we are finalizing plans for the remainder. At today's difficulty, this expansion would represent approximately a 1% increase in global hash rate, further expanding our competitive position and demonstrating continued execution at scale. Now, a core tenet of Bitcoin is its decentralized nature. Mining is broadly distributed by design, ensuring no single participant dominates the network's hash rate. With 5.8% of global hash rate at 50x a hash, CleanSpark is amongst the largest miners in the world. An excellent position for us and a healthy signal for the Bitcoin ecosystem overall. We have ample room to grow while remaining responsibly sized within the decentralized landscape. The scarcity of Bitcoin is also by design, and there are a limited amount of Bitcoin available to miners each day. This is why we are laser focused on responsibly delivering the proof of work required to grow our share of the network, supporting the world's hardest money on behalf of our shareholders. We have multiple proven pathways to capture additional market share. Develop new power pipeline capacity to expand our infrastructure portfolio. Optimize our mining fleet to extract more hash rate from existing resources. Build new sites through greenfield development. and acquire capacity through opportunistic M&A. These strategies are not theoretical. We have executed each of them at scale. Together, they form the foundation of our growth playbook as we continue driving long-term value. We have consistently focused on being the best pure play, vertically integrated Bitcoin mining company in the industry by design. While alternative compute models like AI and HPC have drawn attention, repurposing a mining infrastructure for these applications is far more complex than it may appear. Operators must navigate higher capital intensity, customer uncertainty, and a rapidly evolving hardware environment that can threaten project ROI. By contrast, Bitcoin mining remains a proven and scalable business model. especially in today's constructive market environment that we have optimized unlike any other company. Thanks to this focus, CleanSpark stands apart as the only large-scale pure-play Bitcoin miner with wholly self-operated infrastructure, a position earned through deliberate strategy, not rigid ideology. We have followed this course because up to this point, we have determined that our power contracts and land assets are being put to their optimal use in our mining operations. That said, we have always understood that power has value, no matter how it's used. We have always viewed our real estate portfolio, power contracts, and geographic positioning as assets that hold significant value independent of their utilization for Bitcoin mining. Some sites, both in our current operational footprint and in our pipeline, have potential or alternative value to other use cases. To the extent that certain sites, due to location, infrastructure, or proximity to metro centers, can return superior value, we remain flexible and open to evaluating monetization options that enhance shareholder value. Today, CleanSpark has a significant power pipeline that can fuel continued growth. We are currently evaluating approximately 1.2 gigawatts of potential near-term power opportunities, primarily in areas where we have already operated or with proven partners we have successfully scaled with in the past. The value proposition for utilities in these areas is clear. In tight power markets, flexible customers like us help balance demand and improve grid resiliency. In addition to our near-term pipeline, we are also exploring an additional 1.7 gigawatts of long-term power opportunities. These longer horizon projects would require utility-level infrastructure investments. This layered pipeline ensures we have a long-term access to scalable, low-cost power and gives us the opportunity to execute with precision, speed, and capital efficiency when the time is right. As our pipeline moves from evaluation to project implementation, we will execute our growth plans to best utilize these opportunities to continue delivering operational excellence at every point of the growth cycle. Our track record speaks for itself. We know how and when to pull the trigger on high return opportunities. This discipline allows us to grow with speed and efficiency while keeping capital stewardship at the heart of every decision. The good news for us and for the broader Bitcoin ecosystem is that we are now enjoying significant regulatory tailwinds, both in Washington, D.C. and in state capitals across the country. On July 18th, I was honored to attend a White House ceremony where President Trump signed the Genius Act into law. This legislation, championed in the U.S. Senate by Senator Bill Hagerty of Tennessee, establishes a clear regulatory framework for U.S. dollar-backed stablecoins. That clarity is expected to drive increased demand for both U.S. Treasuries and Bitcoin. Earlier that same week, the U.S. House of Representatives passed another milestone bill, the Clarity Act. This bipartisan legislation would establish a comprehensive federal framework for non-stablecoin digital assets like Bitcoin. It further solidifies Bitcoin's treatment as a commodity, potentially unlocking trillions in capital flows and paving the way for deeper integration with mainstream financial markets. Beyond Washington, momentum is building at the state level as well. Senator Cynthia Loomis of Wyoming continues to be one of our industry's strongest champions, advocating for the creation of a federal strategic Bitcoin reserve. Both Texas and New Hampshire have already taken steps to establish similar reserves at the state level. And just today, we saw a new executive order on the president's desk making Bitcoin a qualified asset in 401k accounts. Together, these developments reflect the growing recognition of Bitcoin's role in U.S. innovation, energy policy, and monetary resilience, and they represent real tailwinds for CleanSpark's continued growth. Progress in this sector isn't limited to Washington. Wall Street and capital markets are increasingly providing tailwinds for Bitcoin adoption. One emerging trend we're watching closely is the rise of Bitcoin treasury companies, public companies that accumulate Bitcoin on a balance sheet for direct purchases rather than production. These entities represent a growing cohort of capital activity competing for a scarce resource, and their participation is helping drive spot prices higher. As this dynamic unfolds, CleanSpark's business model becomes even more valuable. We generate Bitcoin below market rates through our mining operations. And unlike treasury companies, we don't have to compete for coins in the open market. We produce them ourselves, efficiently, at lower cost and spot prices, and at scale. In a market where the race to accumulate Bitcoin is accelerating, we believe that mining remains the most strategic and scalable path to long-term value. And Bitcoin is not a passive asset on our balance sheet. We have a dedicated digital asset management team operating an institutional-grade trading desk to support our operations and generate responsible risk-adjusted yield. Since inception, our approach has been measured and disciplined. In late May, the team executed our first derivatives trade. June marked the first full month of trading activity, and we treated it as a proof of concept focused on execution quality, counterparty betting, and operational security. This crawl, walk, run approach is designed to build a sustainable strategy that responsibly harnesses Bitcoin's natural volatility while preserving our capital and protecting shareholder value. While the program is still in its early stages, I'm pleased to report that our initial results were strong and aligned with our expectations. We will measure success over quarters and cycles. not single months, while maintaining tight feedback loops to ensure continuous learning and improvement. Before I hand the call over to Gary, I want to highlight a few foundational concepts that continue to drive our performance and define who we are. Our four strategic pillars, energy, Bitcoin, operational excellence, and capital stewardship, anchor everything we do. We focus on the KPIs that matter most, percentage of global hash rate, operational hash rate, fleet efficiency, marginal cost of mine, uptime, and Bitcoin and treasury. These are the real drivers of scale, performance, and long-term business health. We call this disciplined approach the CleanSpark way, which is executed through the everyday grit of our team. It's more than a philosophy. It's embedded how we work and how we win. This quarter, that combination of strategy, execution, and culture came together to deliver record-setting results, our strongest quarter in company history. I want to thank every member of our team for embracing this vision and driving CleanSpark to its position as the leading publicly traded Bitcoin miner in the world. With that, I'll now turn the call over to our CFO, Gary Beccarelli, for a closer look at the financials. Gary, over to you.