Earnings Call Insights: CleanSpark, Inc. (CLSK) Q4 2025
Management View
- CEO S. Schultz stated, “I’m so excited to have stepped back into the role of CEO of CleanSpark this past August after serving as Executive Chairman for the past 5 years,” and highlighted a renewed focus on CleanSpark’s evolution into a digital infrastructure platform. Schultz described CleanSpark’s strategic direction as “serving a wide range of compute opportunities,” including AI workloads, grid balancing through Bitcoin mining, and high-performance computing.
- Schultz noted, “2025 was the year CleanSpark achieved escape velocity, reaching 50 exahash per second in operational hash rate with 100% U.S.-based infrastructure,” and emphasized record revenues and capital stewardship by not issuing new shares during the year.
- Schultz outlined a major strategic shift: “We’re in the process of deploying the 19,000 S21 XP Immersion units,” and the company secured a 285-megawatt site in Texas “with the explicit intent of building an AI factory for a high-quality tenant.”
- He also revealed, “we completed our largest financing ever with a $1.15 billion upsized 0% convertible note” and a $460 million stock buyback, reducing outstanding shares by more than 10%.
- President & CFO Gary Vecchiarelli reported, “Our revenue grew more than 100% year-over-year to $766.3 million with almost 8,000 Bitcoin produced,” and added, “Our full year gross margin was 55%.”
Outlook
- Schultz indicated, “we expect that process to be complete in calendar Q1 of ’26” regarding the 19,000 S21 XP Immersion unit deployment and said the focus is “securing tenants for Sandersville and Houston, which will then drive efforts to take the projects from commercialization to commissioning.”
- Vecchiarelli stated, “Going forward, we do expect that our professional fees, payroll and G&A line items will increase as we execute on our AI strategy,” and projected that the AI data center business “comes with stable cash flows and high margins, both of which will help CleanSpark through the peaks and valleys of Bitcoin mining economics.”
- Schultz described the company’s goal as “to deliver each megawatt to its optimal use case” and said, “it is not a matter of if but when we will have our first customer” for AI data centers.
Financial Results
- Vecchiarelli highlighted, “Our revenue increased by approximately $25 million or 13% in Q4 versus Q3 and our margins increased 2 points to 56.5%.”
- The company reported a “slight net loss compared to the third quarter,” attributed to a larger gain on fair value of Bitcoin in Q3 and noncash tax adjustments in Q4.
- Adjusted EBITDA, excluding noncash mark-to-market adjustments, was $97 million for Q4, up from $78 million in Q3, translating to normalized margins of 43% and 39%, respectively.
- The digital asset management (DAM) operation generated $9.3 million in premiums during Q4, with an annualized yield of approximately 12% from covered call strategies, and $7 million of additional cash from monetizing a BITMAIN option.
- Vecchiarelli added, “In October alone, we traded more contracts than the total number of contracts traded during the entire fourth quarter. Additionally, we generated over $5 million in cash premiums for the month of October alone.”
- The $1.15 billion convertible note was used for a $460 million stock buyback, over $200 million to pay off lines of credit, and remaining proceeds to pursue land and power acquisitions for the AI data center strategy.
Q&A
- Brian Dobson, Clear Street LLC, asked about volatility and demand outlook for HPC-AI. Schultz responded, “we’ve had extensive conversations…there is, I don’t want to say a bidding war, but strong multiple layer inquiries about Sandersville specifically, and we’re starting to gain additional traction on the Sealy, Texas site.”
- Dobson also inquired about blending Bitcoin mining with HPC campuses. Schultz said, “So we see it as a dual-pronged strategy. And I think you’ll see a lot of our sites will serve both loads.”
- Michael Colonnese, H.C. Wainwright, asked about HPC milestones for 2026. Schultz cited speed to market and the Submer partnership as “a massive differentiator for us.”
- Colonnese followed up on Bitcoin mining expansion. Schultz said, “we’re at 50 exahash per second right now…between now and towards the end of Q1 ’26…you’ll see that additional 6 exahash come online.”
- Paul Golding, Macquarie Research, asked about the Bitcoin treasury and land bank buildout. Vecchiarelli emphasized, “we’ll continue to monetize the Bitcoin stack through yield strategies…and we’ve built this entire company and even the financial wherewithal on optionality.”
- Several analysts probed the economics and timelines of AI campus development, customer credit quality, and site flexibility with management providing detailed, measured responses and highlighting strong demand, particularly for the Sandersville and Sealy sites.
Sentiment Analysis
- Analysts were inquisitive and at times pressing, particularly on timelines for lease executions, economics of the AI transition, and credit quality of future tenants, but overall the tone was neutral to slightly positive given management’s detailed answers and the reported demand.
- Management’s tone in prepared remarks was confident and optimistic, frequently mentioning “escape velocity,” “record revenues,” and a “superior risk-adjusted profile.” In Q&A, Schultz and Vecchiarelli maintained confidence but were pragmatic regarding uncertainties, frequently referencing measured approaches, optionality, and capital discipline.
- Compared to the previous quarter, sentiment shifted from cautious optimism about exploring AI/HPC and maintaining mining focus to a more proactive, confident stance on AI data centers and diversified compute.
Quarter-over-Quarter Comparison
- The Q4 call reflected a substantive strategic evolution: the CEO transition from Zachary Bradford to S. Schultz, a formal pivot toward AI/HPC with specific land and power acquisitions, and more aggressive financial moves such as a $1.15 billion convertible note and $460 million buyback.
- Guidance language now emphasizes AI data center development, with management describing AI as a “new ecosystem” and outlining plans for exclusive AI campuses.
- Financially, revenue increased by about $25 million quarter-over-quarter, with gross margin and normalized EBITDA margin also improving. The previous quarter emphasized continued mining scale and pipeline growth, while Q4 highlights a dual focus on mining and AI/HPC, supported by new partnerships and expanded management.
- Analyst questions shifted from pipeline growth and mining M&A to detailed inquiries about AI campus economics, tenant timelines, and the integration of mining and HPC loads.
- Management’s tone became more outwardly ambitious on AI/HPC initiatives, while analysts pressed for execution details and timing.
Risks and Concerns
- Management acknowledged increased professional fees, payroll, and G&A expenses as the company pursues its AI strategy.
- There is execution risk around securing high-credit-quality tenants for new AI campuses, as well as capital allocation for large-scale infrastructure buildouts.
- Management discussed evolving customer profiles and the need to balance risk-adjusted returns, especially as it relates to the migration of mining operations and the economics of AI campus conversion.
- Analyst concerns focused on demand sustainability, speed to market for AI tenants, and the creditworthiness of future off-takers.
Final Takeaway
CleanSpark leadership presented a transformational quarter, marked by a decisive pivot into AI and HPC data center markets while maintaining a robust, self-funded Bitcoin mining operation. The company achieved record revenue and margins, completed significant financing and buyback actions, and unveiled a multi-gigawatt pipeline targeting both mining and next-generation compute workloads. Management emphasized operational flexibility, capital discipline, and a measured approach to risk, positioning CleanSpark as a diversified infrastructure platform ready to capitalize on the surging demand for AI compute, while leveraging its industry-leading mining efficiency and balance sheet strength to drive long-term shareholder value.