Bitcoin Mining Operations Leveraging Energy Savings to Drive Profits



CleanSpark, Inc. (CLSK) is a software and services company providing advanced energy software and control technology that enables a plug-and-play and end-to-end enterprise energy solution in microgrid and distributed energy resource (DER) settings as well as hardware systems, specifically switch gear and energy storage solutions. The company also engages in bitcoin mining.

Central to the energy software and control technology business is an integrated software suite comprised of mPulse and mVSO, with the core function of enabling a user to accurately model and intelligently manage a complex microgrid. CleanSpark’s software solutions can be widely implemented across commercial, industrial, military, and municipal organizations. In terms of revenue breakdown, although the hardware business accounts for the bulk (~48% as of 1Q21) of the company’s revenue, it carries low margins (~10%) while the software solutions and the newly launched bitcoin mining operation carry exceptional margins of ~80%. It is expected that in 2Q21 and in future periods, the higher margin revenues will begin to exceed 50-80% of total revenue.

Bitcoin mining is central to the bitcoin ecosystem. It is a process that verifies transactions and provides security to the bitcoin blockchain, and it is how new bitcoins enter circulation. CleanSpark entered into this rapidly growing market through its acquisition of ATL Data Centers in December 2020.


Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.

WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...