CleanSpark's Q3 Earnings Call Centers on Sandersville AI Lease

CLSK Anchors Pivot With Sandersville Lease

CEO and chairman Matt Schultz said that the 20-year Sandersville lease covers nearly 250 megawatts and 175 megawatts of critical IT load. The initial term represents $6.6 billion of contracted revenues.

Schultz said that the triple-net structure places taxes, insurance and maintenance capital expenditure with the tenant, supporting near-100% net operating income conversion and average annual NOI of about $330 million.

Schultz added that the first data hall remains on track for ready-for-service in the fourth quarter of calendar 2027. CleanSpark has ordered and prepaid all long-lead data center items required for that schedule.

CleanSpark Funds Build Without New Equity

President and CFO Gary Vecchiarelli said that Sandersville's expected capital requirement is $1.8-$2.1 billion, based on project costs of $10-$12 million per critical IT megawatt.

Vecchiarelli said that CleanSpark plans to finance the vast majority with project-based debt and is targeting a loan-to-cost above 90%. The anticipated equity portion is already funded, and management does not plan to issue equity or equity-linked instruments for Sandersville.

A Keefe, Bruyette & Woods analyst pressed management on lender appetite. Vecchiarelli said that financing above 90% loan-to-cost has been common in recent transactions and management remains confident in its target.

CLSK Waits on Texas as Exclusivity Holds

Schultz said that up to 885 megawatts across Sealy and Brazoria remain under exclusivity with the Sandersville counterparty. The discussions continue despite the ERCOT review and delay in final Batch 0 determinations.

A Needham analyst asked which Texas capacity still requires approvals. Chief business officer Harry Sudock said that Sealy and the first 300 megawatts at Brazoria received Batch 0 go status but still require final ERCOT determinations.

Schultz identified the Aug. 20 PUCT hearing as the next milestone, while acknowledging uncertainty beyond that meeting. Management said that it continues investing in both sites without changing anticipated energization timelines.

CleanSpark Keeps Bitcoin as Capital Lever

Schultz said that bitcoin mining remains useful because it can monetize power before data centers are completed and bring load online quickly when utilities need it.

Vecchiarelli described the bitcoin treasury as a strategic capital asset. As of June 30, the company had nearly 14,000 bitcoin and approximately $400 million of undrawn bitcoin-backed credit capacity.

A Maxim Group analyst asked whether digital asset management remains a priority. Vecchiarelli said that the company continues selling most production to fund operations, using covered-call strategies to generate cash and retaining the option to deploy bitcoin toward infrastructure opportunities.

CLSK Mining Economics Stay Under Pressure

Vecchiarelli said that fiscal third-quarter revenues rose 1% sequentially even as average revenue per bitcoin mined declined 5% to approximately $72,000. Higher uptime and hash rate offset the lower realized revenues per coin.

The gross margin fell to about 38% from 40% in the fiscal second quarter. Adjusted EBITDA was negative $113 million, although Vecchiarelli said that normalizing for the bitcoin mark-to-market adjustment produced $20 million.

When a Maxim Group analyst asked about weaker future mining economics, Vecchiarelli said that the company is prioritizing capital deployment toward AI data centers while viewing bitcoin mining as the means to support that transition.

CleanSpark's Focus Stays on Powered Land

Management's posture after the fiscal third quarter centered on converting grid-connected power into long-duration data center cash flows while using mining and the bitcoin balance sheet to bridge the development cycle.

Schultz and Sudock also emphasized disciplined site selection and project readiness as CleanSpark evaluates additional infrastructure opportunities across the United States.

CLSK's Zacks Signals Remain Weak

CLSK currently carries a Zacks Rank #3 (Hold), with a Value Score of D and a Growth, Momentum and VGM Score of F. Under the Zacks Style Scores framework, A and B are stronger grades, while the VGM Score combines value, growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The current mix sits outside the strongest Zacks Rank and Style Score combinations, which center on Zacks Rank #1 or #2 (Buy) stocks paired with A or B scores. The Zacks Rank can change as earnings estimates are revised following the just-reported results.

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