All You Need To Know About CleanSpark
Is rideshare a safe industry to bet on? Or perhaps one of the on-demand economy companies could yield better returns in the long run? And what about green-solution firms?
These are questions posed by most new entrants in the stock market. And we are about to throw a new name into the mix - CleanSpark!
After making inroads into the Bitcoin mining space, the company seems to be in the news more than ever. It has suddenly become a lucrative pick for retail and high net worth investors. Moreover, hedge funds sound cautiously optimistic about the energy company’s future.
We won’t tell you whether you should invest in CleanSpark. But there’s enough in this blog post to give you an idea about the company’s operations and prospects.
What Is the Organization All About?
As the name suggests, CleanSpark aims to deliver better energy solutions. It does this by using various on-grid and off-grid optimization techniques. They own many proprietary software solutions that help in achieving their goal of better energy.
Take the mPulse software, for instance. It can manage the immediate and future energy needs by analyzing available resources and user needs.
What happens when there is a power outage? Their Intelligent ATS SwitchGear shifts to an alternate power source when the primary one fails. A $2-million order from a big corporation came as a reaffirming move for all stakeholders. Rest assured, this technology could be a gamechanger in the energy management space.
The microgrid systems continue to be its flagship product.
An overview of CleanSpark’s Primary Offerings -
Solutions for energy systems that aim to achieve more savings and an easily accessible control mechanism
Modeling microgrids using big data and programming techniques to pass on the benefits of distributed energy to consumers
Facilitating seamless communication between IoT products, load aggregators, and power consumers
Consultancy services to help businesses design, transform, and scale their processes
How Is It Performing?
CleanSpark’s Wall Street debut came in 2016 at $35 a share. It stirred investor interest and skyrocketed to $92 at one point before settling down at lower levels.
The stock’s Beta values suggest the volatility to be pretty high. But they do not account for all the latest information about the company. The recent acquisitions and new ventures come with a lot of promise.
In their most recent financial disclosure, CleanSpark reported a profit of $2 million. And they drastically reduced debt obligations from $3 million to a mere $500K.
The top management is making decisions with the future in mind. This forward-thinking, in turn, keeps big investors like Goldman Sachs, The Vanguard Group, and Morgan Stanley interested. It’s worth remembering they are an organization of just 50 people, and the best is probably yet to come.
Why Bitcoin Mining?
Amidst everything else, CleanSpark managed to mine at least 31 Bitcoins in two months. That contributed $873K or 9% to their annual revenue. While few are skeptical, most pundits opine that the company is moving in the right direction.
It acquired the ATL Data Center in Atlanta and brought about a paradigm shift in its objectives. Instead of scaling the mining operations, CleanSpark tried to make it cheaper to extract Bitcoins. More importantly, it serves as a “full-scale test bed” for all new energy software.
CEO Zach Bradford set his eyes on a 30-megawatt energy expansion in the mining farm. He states that renewable sources like solar cells will get added without disrupting the core operations.
Mining Bitcoins on a farm-scale requires lots of hardware, consuming millions of kilowatts every year. That became CleanSpark's opportunity to demonstrate its efficient mechanisms to cut energy costs.
The firm’s Bitcoin division spends $6,000 to extract a single coin, and this number could come down by at least 30%. With profit margins like this, CleanSpark’s mining activity could become its cash cow.
Now, you know why the markets have been abuzz with speculations about its future.
What Lies Ahead?
Its partnerships galore for the energy company!
CleanSpark and ReJoule secured a massive $2.9 million joint-grant from Ford Motor Company. The deal aims to bolster the repurposing of used EV-batteries in microgrids. ReJoule will handle battery management and CleanSpark’s software will provide the master control.
More recently, it acquired Solar Watt Solutions, one of its oldest partners. CFO Lori Love calls this a chance for them to explore more territories with critical energy requirements. The well-received move tripled its revenue projections for the following year.
A partnership with Symmetric aims at opening up the Northern California market for CleanSpark. The company has an opportunity to optimize energy storage for a solar PV clientele. The project has already taken off with the joint-venture branding it as a ‘peace of mind’ solution for customers.
Remember ‘microgrids’ - a buzzword for the future! A Navigant Research study suggests that the alternative-grids business is all set to compound at a rate of 28% annually. Once CleanSpark capitalizes on this opportunity, we’ll see the dark horse turn into a unicorn!
Talking about clean, at Drover Rideshare, we are all about energy-efficient mobility. If you’re wondering ‘if rideshare is safe,’ find out why there’s no reason to fret - here.
