Bitcoin (BTC) mining firm CleanSpark is planning to continue its strategy of scooping up distressed mining company assets this year.
The Bitcoin miner released its fiscal Q1 earnings presentation on Feb. 9, with the company saying it remained optimistic about the coming year and continued growth.
Chief financial officer Gary Vecchiarelli said CleanSpark has seen “explosive growth” in the last 12 months and feels very comfortable with its plans. He added that its growth would continue into 2023 through mergers and acquisitions.
“With respect to our strategy regarding M&A, we have been one of the most active miners to date in acquiring infrastructure and machines, and we will continue to be active.”
“We are still buyers in this market, and our strategy has not changed,” he added, before stating that “we don't feel compelled to go out and have to do M&A. But obviously, if we see a good deal, we'll take advantage of that.”
Our earnings call is about to go live. Just a reminder, we’re a 9/30 year end, so this is our Q1 ‘23 filing. Hope you’ve got a moment to join in and listen. Rough year all over—-@CleanSpark_Inc #bitcoin pic.twitter.com/1uWmZpTLJO— S Matthew Schultz (@smatthewschultz) February 9, 2023
He said that smaller mining operations could potentially be in trouble. Hence the company wants to be in a position to be able to “pick off infrastructure and assets at good deals” similar to what it has done previously.
In November last year, the firm snapped up more than 3,840 Antminer S19J Pro mining machines at below-market prices.
Months before, in September, the firm acquired Mawson's Bitcoin mining facility in Sandersville, Georgia for $33 million as well as a 36-megawatt facility in the same state for $16.2 million.
The company also purchased thousands of Bitcoin miners for a "substantially discounted price” over June and July.
Related: BTC miner CleanSpark scoops up thousands of miners amid ‘distressed markets’
In early 2023, the company continued these expansion plans.
In January, CleanSpark announced that it was further expanding operations in the state of Georgia. A new 50-megawatt Bitcoin mining facility in the city of Washington is expected to be completed in late spring.
According to its fiscal Q1 earnings report, CleanSpark reported that it had mined 1,531 BTC for the period, a 132% increase over the same prior year period.
However, revenue had decreased 25% from the same period last year, falling to $27.8 million. Its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased to $1.4 million.
Despite the positive outlook, company stock (CLSK) fell 5.2% on the day to $3.13 in after-hours trading.