CleanSpark, Inc. (NASDAQ:CLSK) Q1 2023 Earnings Call Transcript

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Brian Dobson: Thanks very much for taking my question. So I guess, taking a little bit of a longer-term view, how are you positioning the company ahead of the 2024 happing And how do you see that impacting the competitive landscape?

Zach Bradford: Yes. Our positioning is to always increase the efficiency of our miners. So you’ll see in the 10-Q, we identified that a year ago, our average fleet efficiency was about 35 watt or tools per terahash, and we’ve improved that to close to 31%, and we plan to continue to improve that. So always staying in a place where you’re upgrading and improving the efficiency is really step one. Step 2, this is where we think investing and building our own infrastructure matters. It’s a onetime long-term investment that puts us in a position where those long-term cost of operating are lower. That will give us a better advantage into happing. And then lastly, it’s making sure we’re pulling every single string we can on the technology side to be in the right position because I think from a competitive landscape, there’s going to be a lot of hashrate that drops off when it occurs for the low performing or the least efficient miners.

And it’s important that we are not only just the most efficient at the time as we can be, but we are deploying technologies, as I mentioned, to both underclock and overclock. And when you underclock, you can actually take a machine, bring down attach rate a little bit, that add significantly more efficiency than it did remove hashrate. And so making sure we’re on the cutting edge of all three of those factors is what’s going to be really, really important.

Gary Vecchiarelli: Brian, I just want to add a few things to that, too. We talked about our base case this year is executing that 16 exahash. But 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. But really looking and having if bitcoin is not at, call it, close to $40,000, we think that there’s going to be a lot of smaller miners and potentially private miners that can’t access the capital markets. They’re going to have trouble. So we really want to position the company to be able to pick off infrastructure and assets at good deals similar to what we’ve done in the last six months or so. So really from a positioning standpoint, we really are looking forward to some opportunities right around having of some other companies that want to get out of the game.

Brian Dobson: Excellent. That’s very helpful, and I look forward to having you at the conference next month.

Gary Vecchiarelli: Thank you.

Isaac Holyoak: All right. I’d like to thank you for your questions and for joining us today. We wish everyone listening a good afternoon and a good evening. Back to you, Audra.

Operator: Thank you. Ladies and gentlemen, with that, we’ll conclude today’s conference. We thank you for attending. You may now disconnect your lines.

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