CleanSpark (CLSK) Q3 2026 earnings summary

Executive summary

• Signed a landmark 20-year triple net lease at Sandersville, Georgia, with a high investment-grade global technology company, representing $6.6 billion in contracted revenue, scalable to $11.6 billion with extensions, and fully funded the anticipated equity portion while pre-paying all long-lead items for project readiness.

• Expanded business strategy to include data center development, high-performance computing (HPC), and AI markets, transitioning from exclusive bitcoin mining and planning further expansion in Texas and other states.

• Maintains a strong position in the AI data center market, leveraging legacy bitcoin mining for capital flexibility and operational agility.

• Premium Texas assets are under exclusivity, with significant energy capacity and phased availability through 2029.

• No revenue yet from AI/HPC services as of June 30, 2026; bitcoin mining remains the sole revenue source.

Financial highlights

• Q3 revenue was $138.0 million, up 1% sequentially from Q2 but down 30.5% year-over-year from $198.6 million.

• Gross margin was 38%, compared to 40% in Q2, due to a modest increase in power prices.

• Net loss for Q3 was $239.8 million, improved from a $378.3 million loss in Q2, but down from net income of $257.4 million in the prior year.

• Adjusted EBITDA was negative $113.0 million, compared to $377.7 million in the prior year.

• Cash position at quarter-end was $202.6 million; bitcoin holdings valued at $814.9 million.

Outlook and guidance

• The Sandersville lease is expected to deliver near 100% net operating income margin, with an average annual NOI of $330 million.

• The first data hall is on track for service in Q4 of calendar 2027, with phased energy availability for Texas assets through 2029.

• Management expects to continue developing AI/HPC data center capacity, with the Sandersville lease as a cornerstone.

• Additional capital will be required to fund Sandersville and future data center projects; plans include project-based debt and potential equity financing.

• No anticipated changes to energization timelines for Texas sites despite regulatory reviews.