Cleanspark, Inc. · NASDAQ:CLSK
Cleanspark — Investor Presentation (September 2023)
38 slides from Cleanspark's investor presentation, September 2023
Slide 1: Investor Presentation September 2023
Investor Presentation September 2023 NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark
Slide 2: Disclaimer
Disclaimer CleanSpark cautions you that statements in this presentation that are not a description of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on CleanSpark’s current beliefs and expectation
Slide 3: CleanSpark is America's Bitcoin Miner
CleanSpark is America's Bitcoin Miner™ Transformational Industry-leading Exceptionally strong infrastructure operational track record balance sheet1 88,217 150,000 $115.9M $92.4M Revenue FYTD Cash balance1 Miners Miners at full deployed2 deployment 55% 1,677 9.3 EH/s 16 EH/s MRQ bitcoin mining Bitco
Slide 4: With a Proven Track Record of Strategic Growth
With a Proven Track Record of Strategic Growth Proven Track 47% 210% Record of YoY YoY Growth Revenue Growth1 Hashrate Growth2 Market- 1.5¢ $21/TH driven Power rates as low Called the bottom of the Strategies as3 market for XPs4 1. From June 30, 2022, to June 30, 2023. 2. From July 31, 2022, to July
Slide 5: A Track Record of Never Letting a Bear Market Go to Waste
A Track Record of Never Letting a Bear Market Go to Waste 210% Increase in Hashrate1 ACQUIRED NEW DALTON, 4 EH/S GA, FACILITY FROM $70.000 September 2022 MAKERSTAR June 2023 PURCHASED 10,000 S19J PRO MINERS 1,000TH BITCOIN MINED September 2022 PURCHASED 12,500 $60.000 October 2021 ANTMINER S19 XP MI
Slide 6: A Track Record of Pragmatically Growing our Bitcoin Balance
A Track Record of Pragmatically Growing our Bitcoin Balance HODL vs BTC Price Bitcoin is a strategic part of $50.000 our capital strategy. We are 1.800 bullish on bitcoin and believe $45.000 it plays an important role in 1.600 our growth plans. $40.000 1.400 $35.000 1.200 Bitcoins in Treasury Price
Slide 7: A Track Record of Being a Top Bitcoin Producer
A Track Record of Being a Top Bitcoin Producer 18 1,871₿ 2000 16 16 1,624₿ 1800 1,530₿ 1600 14 1,227₿ 1400 Quarterly Bitcoin Mined 12 Hashrate (EH/s) 1200 10 964₿ 889₿ 1000 8 9.3 660₿ 800 6 6,6 6,7 6,2 600 4 4,08 400 2 2,84 200 2,3 1,69 0 0 Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 Q1 FY2023 Q2 FY2023
Slide 8: Bitcoin is a Superior Form of Money
Bitcoin is a Superior Form of Money Durable Divisible Fungible Portable Verifiable Scarce Track Record Gold Bitcoin Fiat Currency Gold has the Gold and Gold has a Both gold and longest track While all are bitcoin are Gold is scarce, high value-to- fiat currency record of money physically Physical go
Slide 9: Best Operators in the Industry
Best Operators in the Industry Leading efficiency Proprietary infrastructure Extraordinary people Energy expertise Massive scale NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark | 8
Slide 10: Leaders in Efficiency
Leaders in Efficiency Efficiency of Fleet: We mine more bitcoin while using less power • Current fleet efficiency: 28.7 J/TH1 We are one of the • Expected fleet efficiency at 16 EH/s: 25 J/TH2 most efficient Efficiency of Operations: We run our own facilities operators in the industry • Highest hash
Slide 11: Building Proprietary Infrastructure
Building Proprietary Infrastructure Predictability “Owning our infrastructure makes us more efficient, predictable, and reliable. This strategy has made us Reliability one of the top operators in the industry.” Efficiency Zach Bradford, CEO We own 3.2 million sq. ft. 82% Owned & Operated of real est
Slide 12: Best-in-Class Teams
Best-in-Class Teams Best Mining Technicians: We have a team of experts who deeply understand Bitcoin technology with extensive knowledge of mining equipment, safety protocols, and the latest technological advancements in the field. Best Repair Teams: They are the heartbeat of our mining operations.
Slide 13: Our Energy Expertise Drives Sophisticated Power Management
Our Energy Expertise Drives Sophisticated Power Management Q3-23 Power Cost “By running at max operating power when electricity costs are lowest, and 7% 58% 8% Wholesale Electricity $0.024 optimizing when electricity costs are higher, we have been able to achieve Transmission & Distribution $0.011 2
Slide 14: Positioned to Accumulate Rapid Gains as We Scale
Positioned to Accumulate Rapid Gains as We Scale Quarterly Gross Bitcoin Price Margin at 16 EH/s (in Millions) $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 300 EH/s $50m $71m $92m $113m $134m $155m $177m 5.3% CLSK Share of Global Hashrate 325 EH/s $43m $63m $82m $102m $121m $141m $160m 4.
Slide 15: Bitcoin Mining Data Centers
Bitcoin Mining Data Centers Dalton, Georgia Norcross, Georgia Massena, New York .8 EH/s .5 EH/s 1.5 EH/s Washington, Georgia 3 EH/s Sandersville, Georgia College Park, Georgia 2.2 EH/s 1.3 EH/s *Hashrate as of August 31, 2023. NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark | 14
Slide 16: Georgia: (Actually) the Best State to Mine Bitcoin
Georgia: (Actually) the Best State to Mine Bitcoin Why We Love Georgia: Legend Best State for Business CleanSpark Bitcoin 9 years in a row – Area Development, 2022 Mining Facility Competitive Fiscal and Tax Structure Nuclear Power Plant Ranked 8 for corporate tax climate – Tax Foundation, 2023 Unive
Slide 17: Community Impact
Community Impact • $145+ million in capital commitments over five years in Gwinnett county • $2.5+ million in local sales tax across Georgia (FYTD) • Supporting renewable generation with Georgia's Flex REC program • Chamber Memberships: Georgia, Washington-Wilkes, Washington, Las Vegas, Henderson •
Slide 18: Our Facilities
Our Facilities* Facility Hashrate No. of Machines MW Uptime Square Footage Utility Provider MEAG/Georgia College Park 1.3 EH/s 12,049 38 98.53% 261,360 Power Norcross .5 EH/s 4,287 17.7 85.61% 317,988 Georgia Power Washington 3 EH/s 25,792 82 98.05% 1,176,120 MEAG Sandersville 2.2 EH/s 23,520 72 94.
Slide 19: Investment Highlights
Investment Highlights Infrastructure First Operational Leader Clean Balance Sheet, Average Hashrate Realization (Jan-23 to Aug-23) Low Leverage 95% 94% 92% 90% 90% 87% 87% 86% Total Assets Total Debt 82% 80% 82% 78% 75% 75% 64% $653m $18m Owned & Operated Co-L ocated 18% BITF HIVE CLSK BTBT MIGI GRE
Slide 20: Appendix
Appendix NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark | 19
Slide 21: Glossary
Glossary Word Definition CY Abbreviation for calendar year; refers to the timeframe of January 1, 2023, through December 31, 2023. EBITDA Abbreviation for earnings before interest, taxes, depreciation, and amortization; is a widely-used, non-GAAP measure of a company’s financial health. EH/s Abbrevi
Slide 22: Leaders of Teams and Industries
Leaders of Teams and Industries Natasha Betancourt Taylor Monnig Isaac Holyoak Gary A. Vecchiarelli Zach Bradford S. Matthew Schultz Scott Garrison Joni McMillan Chief of Staff VP, Mining Technology Chief Communications Officer Chief Financial Officer CEO & President Executive Chairman VP, Business
Slide 23: Other Resources
Other Resources What is Bitcoin? ESG & Corporate Responsibility Report 2023 Facility Locations NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark | 22
Slide 24: Bitcoin & Traditional Assets ROI
Bitcoin & Traditional Assets ROI Source: Creative Planning Bitcoin Gold NASDAQ 100 S&P 500 2014 -58% -2% 19% 14% 2015 35% -11% 10% 1% 2016 125% 8% 7% 12% 2017 1331% 13% 33% 22% 2018 -73% -2% 0% -4% 2019 95% 18% 39% 3% 2020 301% 25% 49% 18% 2021 66% -4% 27% 29% 2022 -66% -1% -33% -18% 2023 YTD 89% 7%
Slide 25: Income Statement YTD23
Income Statement YTD23 ($ in thousands, except per value and share amounts) Q1-23 Q2-23 Q3-23 YTD-23 December 31, 2022 March 31, 2023 June 30, 2023 June 30, 2023 Revenue, Net Bitcoin mining revenue, net $ 27,746 $ 42,488 $ 45,427 $ 115,661 Other services revenue 73 58 96 227 Total revenue, net $ 27,
Slide 26: Income Statement YTD23 (cont'd)
Income Statement YTD23 (cont’d) ($ in thousands, except per value and share amounts) Q1-23 Q2-23 Q3-23 YTD-23 December 31, 2022 March 31, 2023 June 30, 2023 June 30, 2023 Income (loss) before income tax (expense) or benefit (30,488) (18,166) (14,117) (62,771) Income tax expense - - - - Loss from con
Slide 27: Income Statement FYE22
Income Statement FYE22 ($ in thousands, except per value and share amounts) Q1-22 Q2-22 Q3-22 Q4-22 FYE-22 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 September 30, 2022 Revenue, Net Bitcoin Mining Revenue, Net $ 36,975 $ 36,965 $ 30,942 $ 26,118 $ 131,000 Other Services Revenu
Slide 28: Income Statement FYE22 (cont'd)
Income Statement FYE22 (cont’d) ($ in thousands, except per value and share amounts) Q1-22 Q2-22 Q3-22 Q4-22 FYE-22 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 September 30, 2022 Income (loss) before income tax (expense) or benefit $ 15,644 $ 2,032 $ (16,611) $ (41,154) $ (40,0
Slide 29: Balance Sheet
Balance Sheet ($ in thousands, except per value and share amounts) June 30, 2023 September 30, 2022 Assets Current assets Cash and cash equivalents $ 21,833 $ 20,463 Accounts receivable, net 100 27 Inventory 1,037 216 Prepaid expense and other current assets 8,343 7,931 Bitcoin 13,925 11,147 Derivat
Slide 30: Balance Sheet (cont'd)
Balance Sheet (cont’d) ($ in thousands, except per value and share amounts) June 30, 2023 September 30, 2022 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 29,634 $ 24,662 Operating lease liability 194 113 Finance lease liability 168 260 Current p
Slide 31: Facility: College Park
Facility: College Park CleanSpark's first ever bitcoin mining facility is in College Park, Georgia. It sits on six acres near the Hartsfield-Jackson Atlanta International Airport and features at its heart 48 new 1.3 12,049 38 generation air-cooled pods enclosed by a Department of Transportation soun
Slide 32: Facility: Norcross
Facility: Norcross An 87,000-square-foot data center in Norcross was purchased and transformed into CleanSpark's second Bitcoin mining facility. Situated on over seven acres, the immersion- .5 4,287 17.7 cooled site participates in Georgia’s Flex REC program and is 100% net carbon-neutral. Hashrate
Slide 33: Facility: Washington
Facility: Washington Nestled between Augusta and Athens, the historic town of Washington is home to CleanSpark’s third bitcoin mining facility. It was purchased during the summer 2022 bear 3 25,792 82 market from another bitcoin miner as an already-operational site. Bitcoin mining machines operate i
Slide 34: Facility: Sandersville
Facility: Sandersville CleanSpark’s fourth bitcoin mining site (and second to be purchased during the summer 2022 bear market) is the largest facility in our portfolio. The turnkey operation in 2.2 23,520 72 Sandersville was acquired from another bitcoin miner with room to almost triple its Hashrate
Slide 35: Facility: Dalton
Facility: Dalton Dalton marks CleanSpark's fifth campus in Georgia. We collaboratee closely with the local utility, which is owned and operated by the City of Dalton. This campus is unique, being .8 5,901 20 made of two separate sites a few miles from each other. Hashrate (EH/s) No. of Machines Mega
Slide 36: Facility: Co-locations
Facility: Co-locations Most of CleanSpark’s hashrate comes from the bitcoin mining locations that we own and operate. However, we also co-locate some of our machines at Coinmint in Massena, New 1.5 16,668 York. The facility runs on hydroelectric power—a prime example of bitcoin mining with Hashrate
Slide 37: Non-GAAP Measures
Non-GAAP Measures Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States (“GAAP”). Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company's
Slide 38: NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark
NASDAQ: CLSK All Rights Reserved. Copyright 2023 CleanSpark