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    CLSK
    Earnings call· Jun 2026(Q3 FY26)

    CLEANSPARK Q3 FY26 earnings call CLSK

    Aug 6, 2026 Source

    Executive summary

    CleanSpark Q3 FY26 — Pivoting to AI Digital Infrastructure with $6.6B Contracted Revenue

    CleanSpark is strategically transitioning from Bitcoin mining to a diversified digital infrastructure platform, highlighted by a significant 20-year triple-net lease for its Sandersville campus, securing substantial contracted revenue. The company is leveraging its balance sheet and Bitcoin holdings to fund this expansion without equity dilution, despite a temporary delay in ERCOT approvals for its Texas projects. This pivot positions CleanSpark to monetize its power portfolio at an institutional scale, focusing on high-margin, predictable cash flows from AI data centers.

    Highlights

    5

    • Secured a 20-year triple-net lease for Sandersville campus with a high investment-grade global technology company, representing $6.6 billion in contracted revenue, with potential to scale to $11.6 billion over 30 years.

    • Expected average annual Net Operating Income (NOI) of approximately $330 million from the Sandersville lease, with near 100% NOI margin due to triple-net structure.

    • Fully funded the equity portion of the Sandersville project, with plans for project-based debt financing exceeding 90% loan-to-cost, avoiding equity dilution.

    • Maintained strong liquidity of $917 million as of June 30, including $200 million cash and almost 14,000 Bitcoin, providing "dry powder" for future accretive opportunities.

    • Q3 FY26 revenue increased to $138 million, up 1% QoQ, despite a 5% decrease in average revenue per Bitcoin mined.

    Concerns

    5

    • GAAP net loss for Q3 FY26 was $240 million, primarily driven by unfavorable mark-to-market adjustments on Bitcoin balances of $133 million.

    • Gross margin in Q3 FY26 decreased to 38% from 40% in Q2 FY26 due to a modest increase in power prices.

    • Adjusted EBITDA was negative $113 million in Q3 FY26, though positive $20 million when normalized for non-cash mark-to-market adjustments.

    • ERCOT's Batch 0 determinations for Texas sites are delayed beyond August 7, with a key milestone on August 20, introducing timing uncertainty.

    • Austin County adopted a temporary countywide moratorium on AI data centers on July 27, potentially impacting the Sealy site, though management expects a positive resolution.

    Guidance & targets

    5
    CategoryTargetConfidence
    Sandersville Lease Annual Net Operating Income (NOI)
    $330 million
    high materiality
    High
    Sandersville Project Cost per Critical IT Megawatt
    $10 million to $12 million
    medium materiality
    High
    Sandersville First Data Hall Ready for Service (RFS)
    Q4 CY27
    high materiality
    High
    Sandersville Project Total CapEx
    $1.75 billion to $2.1 billion
    high materiality
    High
    Sandersville Project Loan-to-Cost Target
    above 90%
    high materiality
    High

    Operational metrics

    14
    Revenue growth
    1%QoQ increase
    Q3 FY26

    Compared to the preceding second quarter.

    Average revenue per Bitcoin mined
    $72,0005% decrease from $76,000 in Q2
    Q3 FY26
    Gross margin
    38%compared to 40% in Q2 FY26
    Q3 FY26
    Unfavorable mark-to-market adjustments on Bitcoin balances
    $133 millioncompared to $263 million in Q2 FY26
    Q3 FY26

    Primary driver of GAAP net loss.

    Adjusted EBITDA
    -$113 million
    Q3 FY26
    Adjusted EBITDA (normalized)
    $20 million
    Q3 FY26
    Cash generated from digital asset management
    $8.6 million$25.8 million fiscal year-to-date
    Q3 FY26

    Net positive cash returns from digital asset management activities.

    Bitcoin sales premium
    7%greater than spot
    Q3 FY26

    Achieved through digital asset management team efforts.

    Total liquidity
    $917 million
    as of June 30, 2026

    Includes cash and Bitcoin holdings.

    Cash and investments balance
    $200 million
    as of June 30, 2026

    Component of total liquidity.

    Bitcoin balance
    almost 14,000
    as of June 30, 2026

    Part of total liquidity, viewed as flexible capital.

    Undrawn Bitcoin-backed lines of credit
    $400 million
    as of June 30, 2026

    Available capital.

    Contracted capacity
    1.8 GWgrowing beyond 2.1 GW in the near term
    today

    Reflects current and near-term expected capacity across the portfolio.

    Projects actively under analysis and development
    6.5 GW or 7 GW
    current

    Refers to projects being evaluated by Duncan's team.

    Industry KPIs

    3
    MetricValueDetails
    Capacity CAPEX175 megawattsMW
    Revenue growth$138 millionUSD
    Rpo current rpo$6.6 billionUSD

    Orderbook & backlog

    1
    Contracted Revenue (Sandersville Lease)$6.6 billionpost Q3 FY26 close

    Initial term of 20 years; potential to scale to $11.6 billion over 30 years with two 5-year extensions.

    Deals & partnerships

    3
    High investment-grade leading global technology company20-year triple-net lease for Sandersville, Georgia campus$6.6 billion20 years (initial term), potential for 30 years with extensions

    Covers 250 megawatts gross capacity and 175 megawatts critical IT load. Includes two 5-year extension options to scale to $11.6 billion total.

    High investment-grade leading global technology companyExclusivity agreement for entire Texas portfolio (Sealy and Brazoria campuses)exclusivity window

    Exclusivity agreement remains intact despite ERCOT review delays. Management views this as a potential for future lease announcements similar to Sandersville.

    Vertically integrated mechanical, electrical and plumbing manufacturer and design builderPartnership for commercial growth

    Partner with proven track record and domestic manufacturing capability, derisking supply chain for data center builds.

    Capital programs

    1
    Sandersville Data Center Build-outunderway$1.75 billion to $2.1 billion
    Spent to date: equity portion fully funded; long lead items ordered and prepaid
    Funding: Project-based debt financing (targeting >90% loan-to-cost); equity portion already funded.
    Start: Q3 FY26

    Benefit: 175 megawatts of critical IT load

    Project advancing according to plan on a 122-acre greenfield parcel. Collaboration with tenant's preferred EPCM firm and general contractor derisks supply chain.

    Risks & headwinds

    4
    ERCOT Batch 0 determination delaysNear term (beyond August 7, with August 20 as key date)

    Final Batch 0 determinations will be delayed beyond August 7; next key milestone is August 20 PUCT open hearing.

    Mitigation: CleanSpark's campus quality, disciplined site selection, and project readiness remain unchanged. Anticipates similar opportunities might develop in Texas due to capital constraints of other projects. Exclusivity agreement for Texas sites remains intact.

    Austin County temporary moratorium on AI data centersTemporary

    Countywide moratorium adopted on July 27.

    Mitigation: Management expects positive resolution, noting that many local zoning attempts have been overturned in court. Engaged constructively with the community.

    Unfavorable mark-to-market adjustments on Bitcoin balancesQ3 FY26

    $133 million unfavorable adjustment in Q3 FY26.

    Mitigation: Management views Bitcoin balance as a flexible capital source, not a passive position, used for cash generation (e.g., covered calls) and to fund accretive opportunities, avoiding equity dilution.

    Increased power pricesQ3 FY26

    Modest increase of $0.01 over prior quarter.

    Mitigation: Impacted gross margin (38% vs 40% QoQ), but company's efficient fleet allowed operation in a historically difficult period for Bitcoin mining.

    What to watch in Q4 FY26

    5

    ERCOT Batch 0 Determinations for Texas Sites

    Next quarter (following August 20 PUCT hearing)
    CurrentDelayed beyond August 7, next key milestone August 20 PUCT hearing.
    TargetFinal determination on baseload status for Sealy and Brazoria Phase 1.

    Why it matters

    Crucial for advancing the Texas data center projects and converting exclusivity agreements into definitive leases, impacting future revenue and capacity.

    ERCOT has notified large load applicants that final Batch 0 determinations will be delayed with the next key milestone, the August 20 PUCT open hearing.

    Q&A highlights

    7

    Inquired if the $10M-$12M/MW CapEx for Sandersville benefits from existing infrastructure and how it compares to Texas greenfield costs.

    Harry Sudock clarified that Sandersville is a true greenfield build on a newly acquired 122-acre parcel, so the CapEx is comparable to other greenfield projects. The only modest benefit is the existing substation, which was key for commercialization.

    “really important for our strategy for developing in Sandersville was to procure the 122-acre parcel a little bit down the road so that we could build out the data center as a true greenfield development. So when we think about all of the data center costs associated with the build out, those are really apples-to-apples versus any greenfield project in our mind.”

    asked by Paul Golding · answered by Harry Sudock

    2 min read6 chapters

    Detailed Narrative

    01

    Sandersville Lease Details

    The company secured a 20-year triple-net lease for its Sandersville, Georgia campus with a high investment-grade global technology company. This agreement covers 250 megawatts of gross capacity and 175 megawatts of critical IT load, representing $6.6 billion in contracted revenue, with options to scale to $11.6 billion over 30 years. The triple-net structure means the tenant covers taxes, insurance, and maintenance CapEx, resulting in an expected near 100% net operating income margin and an average annual NOI of $330 million.

    02

    Texas Portfolio Exclusivity

    CleanSpark's entire Texas portfolio, comprising 718 acres and up to 885 megawatts of secured and planned capacity across its Sealy and Brazoria campuses, is under exclusivity with the same counterparty as the Sandersville lease. This reflects the counterparty's interest in a growth path measured in gigawatts and a multi-decade relationship, despite the Texas ERCOT review process introducing some uncertainty.

    03

    ERCOT Review and Market Opportunity

    Governor Abbott's directive for an audit of data center projects seeking grid connection in Texas has delayed ERCOT's Batch 0 determinations. While this creates short-term uncertainty, CleanSpark views it as an opportunity, anticipating that projects lacking capital support or operational rigor may become available, allowing CleanSpark to leverage its strong balance sheet and disciplined site selection.

    04

    Bitcoin Mining as a Strategic Asset

    The legacy Bitcoin mining business is described as a strategic advantage, enabling rapid monetization of megawatts (within 90 days) for utilities and providing a flexible capital source. The HODL balance of nearly 14,000 Bitcoin is seen as "dry powder" for accretive opportunities, allowing the company to fund its platform and protect shareholders without equity dilution, especially when equity valuation is deemed unfavorable.

    05

    Capital Strategy and Funding

    CleanSpark has fully funded the equity portion of the Sandersville project and plans to use project-based debt financing for the vast majority of the $1.75 billion to $2.1 billion CapEx, targeting over 90% loan-to-cost. The company's $917 million in total liquidity as of June 30, including cash and Bitcoin, supports this strategy, aiming to unlock shareholder value through consistent, predictable cash flows from the new AI infrastructure business.

    06

    Operational Rigor and Supply Chain

    The Sandersville project is advancing on schedule, with site preparation underway on a 122-acre greenfield parcel. The company is collaborating with the tenant's preferred EPCM firm and general contractor, which also manufactures key components, derisking the supply chain and accelerating the build process by shifting construction from field to factory. Long lead items for the first data hall (RFS Q4 CY27) have been ordered and prepaid.

    AI-generated summary of the company’s earnings call. Not investment advice.