CleanSpark Reduces 2023 Hashrate Forecast by Approximately 30%
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CleanSpark Brings About Reduction in its Hashrate
Earlier this year, CleanSpark signed a cooperation agreement with energy technology firm Lancium for the first 200 megawatts (MW) of power capacity in west Texas, or 6.6 EH/s of hashrate, with an opportunity for an incremental 300MW in the future.
According to a statement, Lancium told CleanSpark that financial limitations have made it difficult for the company to fulfill its obligations. The miner decreased its projection since the anticipated completion deadlines have been pushed out to late 2023 or perhaps later.
Negative Impact of Crypto Winter
Due to the collapse in the price of bitcoin, which eliminated their earnings, the current crypto winter has had a negative impact on cryptocurrency miners. Their costs have increased as a result of the rising cost of electricity.
In addition to lowering its forecast, CleanSpark reported that its fourth-quarter sales increased by 235% compared to the same time frame last year. According to the company's statement, its net loss increased by 683% year over year, mostly because of the depreciation of goodwill and bitcoin holdings as well as non-cash liabilities from changing equity instruments.
Fall in Shares
In after-hours trading on Wednesday, shares of the miner decreased by around 2% as the bitcoin price marginally increased. In comparison to other miners like Core Scientific (CORZ) and Marathon Digital (MARA), whose shares have fallen over 80% this year, CleanSpark's shares have performed marginally better, down roughly 76% this year.