CleanSpark cuts 2023 hashrate by nearly 30%

Key points:

• Bitcoin miner CleanSpark cut its end-2023 hash rate or processing power forecast to 16 exahashes per second (EH/s) from 22.4 EH/s, citing a delay in building mining equipment by one of its partners.
• The miner announced a partnership with energy technology company Lancium earlier this year to build an initial 200 megawatts of power capacity in West Texas.
• Lancium informed CleanSpark that the funding shortfall affected its ability to meet its obligations. The expected completion date has been pushed back to late 2023 or beyond, leading miners to lower their forecasts.
• Cryptocurrency miners have been hit hard by the current crypto winter as the price of Bitcoin plummeted, wiping out their income. Meanwhile, energy prices have skyrocketed, adding to costs. 
• This led to Compute North, one of the largest mining data center operators in the United States, filing for Chapter 11 bankruptcy protection in September.

Bitcoin miner CleanSpark (CLSK) cut its end-2023 hash rate or processing power forecast to 16 exahashes per second (EH/s) from 22.4 EH/s, citing a delay in building mining equipment by one of its partners, Blueberry.

The miner announced a partnership with energy technology company Lancium earlier this year to build an initial 200 megawatts (MW) of power capacity in West Texas, which equates to a hashrate of 6.6 EH/s and could add 300 MW of electrical capacity in Texas in the future. 

However, according to a statement, Lancium informed CleanSpark that the funding shortfall affected its ability to meet its obligations. The expected completion date has been pushed back to late 2023 or beyond, leading miners to lower their forecasts.

Cryptocurrency miners have been hit hard by the current crypto winter as the price of Bitcoin plummeted, wiping out their income. Meanwhile, energy prices have skyrocketed, adding to costs. This led to Compute North, one of the largest mining data center operators in the United States, filing for Chapter 11 bankruptcy protection in September, while major companies like Core Scientific (CORZ), Argo Blockchain (ARBK), and Greenidge Generation (GREE) have owned everyone who says they are going through a liquidity crisis.

In addition to lowering its guidance, CleanSpark said fourth-quarter revenue rose 235% from a year earlier. At the same time, the company said in a statement that the net loss increased by 683% year-on-year, mainly due to the impairment of goodwill and Bitcoin balances, as well as non-cash expenses related to changes in equity instruments.

Shares in the mining company were down about 2 percent in after-hours trading on Wednesday, while Bitcoin prices were slightly higher. Shares of CleanSpark have performed slightly better than most of their peers, down about 76% this year, while other miners such as Core Scientific (CORZ) and Marathon Digital (MARA) are down more than 80%.