CleanSpark on Thursday reported Q2 revenue growth of 122% year-on-year to $10 million, missing Street estimates by $0.2 million. Both the Energy and Digital Agency segments contributed to the revenue growth. Shares were up 6.5% at the closing bell.
CleanSpark (CLSK), a provider of innovative software and control technology solutions, reported that gross margin expanded from 14.9% to 21.1%.
Additionally, non-GAAP net loss per share for Q2 improved by 56%, from $1.17 to $0.52. The FY20 GAAP net loss per share improved by 61%, from $6.25 to $2.44, beating analyst expectations by $0.10.
During the quarter, the company completed the acquisition of cash flow-positive technology solution companies, GridFabric and p2klabs, to expand their growth potential across newer verticals.
CleanSpark and ReJoule won a $2.9 million grant from the California Energy Commission, supported by Ford Motor for second-life EV battery deployments. It also partnered with the International Land Alliance to provide microgrid power solutions to over 400 unique residential resort properties.
The company expects to generate revenue of $20 million from its existing business segments and at least $8 million in additional Bitcoin-based revenue from the ATL Data Center acquisition in FY21.
The stock has gained 229% year-to-date and is trading at a discount of close to 5% to its 52-week high. (See CLSK stock analysis on TipRanks)
On Dec. 11, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on Cleanspark with a price target raised from $18 to $24. The average price target of $24 implies an upside potential of 36.4% to current levels.
The Dec. 10 acquisition of bitcoin mining operator ATL Data Centers led to the hike in the price target in anticipation of new revenue and margin contribution from bitcoin mining activity.
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