FY2024 Second Quarter Revenue of $111.8 million, net income of $126.7 million and Adjusted EBITDA of $181.8 million Revenue grows 163% YoY  Current hashrate surpasses 17 EH/s  LAS VEGAS, May 9, 2024 /PRNewswire/ -- CleanSpark, Inc. (NASDAQ:CLSK) (the "Company"), America's Bitcoin Miner™, today reported financial results for the three months ended March 31, 2024. The Company will hold its earnings call today at 1:30 p.m. PT / 4:30 p.m. ET. "We've achieved remarkable milestones this past quarter, ultimately becoming what we believe to be the top operator at scale in the industry, as we increased our operational capacity by over 60%, extended our footprint with new facilities in Mississippi and Georgia, and bolstered our total capacity to over 17 EH/s," said Zach Bradford, CEO. "These efforts have driven a significant rise in our revenue, underscoring the effectiveness of our strategic initiatives and targeted growth. As we press ahead, our focus remains on innovation, measured growth, and strengthening our unique position in the market to deliver sustained value to our shareholders. Our commitment is not only to today's success but to fostering a resilient and thriving future for all our stakeholders." "The second quarter was record breaking and historic for CleanSpark, as we recognized approximately $112 million of revenue," said Gary A. Vecchiarelli, CFO. "Our margins have also increased over the preceding first quarter which were helped by the rise in bitcoin prices and expanded margins. At our wholly owned sites, we experienced wholesale power costs as low as 1.3 cents per kilowatt hour, and a very favorable all-in power cost of 4.3 cents per kilowatt hour. We also ended the quarter with almost $700 million in cash and bitcoin, and virtually no debt, which put us in a strong position for the halving and will allow us to take advantage of opportunities the halving presents." Q2 Financial Highlights Financial Results for the Three Months Ended March 31, 2024 The Company increased its quarterly revenues to $111.8 million, an increase of $69.3 million, or 163% from $42.5 million for the same prior year period. Net income for the three months ended March 31, 2024, was $126.7 million or $0.59 basic income per share compared to a loss of ($18.5) million or ($0.23) loss per share for the same prior year period. Adjusted EBITDA1 increased to $181.8 million, increasing from $12.7 million in the same prior year period. Balance Sheet Highlights as of March 31, 2024 Assets Cash: $323.1 million Bitcoin: $358.0 million Total Current assets: $687.8 million Total Mining assets (including prepaid deposits & deployed miners): $623.1 million Total Assets: $1.54 billion Liabilities and Stockholders' Equity Current Liabilities: $55.0 million Total Liabilities: $74.4 million Total Stockholders' Equity: $1,462.9 million The Company had working capital of $632.7 million and $12.8 million of debt as of March 31, 2024. Investor Conference Call and Webcast The Company will hold its second quarter FY2024 earnings presentation and business update for investors and analysts today, May 9, 2024, at 1:30 p.m. PT / 4:30 p.m. ET. Webcast URL: https://investors.cleanspark.com.  The webcast will be accessible for at least 30 days on the Company's website and a transcript of the call will be available on the Company's website following the call. About CleanSpark CleanSpark (NASDAQ:CLSK) is America's Bitcoin Miner™. We own and operate data centers that primarily run on low-carbon power. Our infrastructure responsibly supports Bitcoin, the world's most important digital commodity and an essential tool for financial independence and inclusion. We cultivate trust and transparency among our employees and the communities we operate in. Visit our website at www.cleanspark.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this press release, forward-looking statements include, but may not be limited to, statements regarding the Company's expectations, beliefs, plans, intentions, and strategies. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "forecasts," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: strategic targets of management; the risk that the electrical power available to our facilities does not increase as expected; the success of its digital currency mining activities; the volatile and unpredictable cycles in the emerging and evolving industries in which we operate; increasing difficulty rates for bitcoin mining; bitcoin halving; new or additional governmental regulation; the anticipated delivery dates of new miners; the ability to successfully deploy new miners; the dependency on utility rate structures and government incentive programs; dependency on third-party power providers for expansion efforts; the expectations of future revenue growth may not be realized; and other risks described in the Company's prior press releases and in its filings with the Securities and Exchange Commission (SEC), including under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023, and any subsequent filings with the SEC. Forward-looking statements contained herein are made only as to the date of this press release, and we assume no obligation to update or revise any forward-looking statements as a result of any new information, changed circumstances or future events or otherwise, except as required by applicable law. Non-GAAP Measure The Company presents adjusted EBITDA, which is not a measurement of financial performance under generally accepted accounting principles in the United States("GAAP"). The Company's non-GAAP "Adjusted EBITDA" excludes (i) impacts of interest, taxes, and depreciation; (ii) the Company's share-based compensation expense, unrealized gains/losses on securities, and, changes in the fair value of contingent consideration with respect to previously completed acquisitions, all of which are non-cash items that the Company believes are not reflective of the Company's general business performance, and for which the accounting requires management judgment, and the resulting expenses could vary significantly in comparison to other companies; (iii) non-cash impairment losses related to long-lived assets (including goodwill); (iv) realized gains and losses on sales of equity securities, the amounts of which are directly related to the unrealized gains and losses that are also excluded; (v) legal fees related to litigation and various transactions, which fees management does not believe are reflective of the Company's ongoing operating activities; (vi) gains and losses on disposal of assets, the majority of which are related to obsolete or unrepairable machines that are no longer deployed; (vii) gains and losses related to discontinued operations that would not be applicable to the Company's future business activities; and (viii) severance expenses. The Company previously excluded non-cash impairment losses related to digital assets and realized gains and losses on sales of bitcoin from our calculation of adjusted EBITDA, but has determined such items are part of the Company's normal ongoing operations and will no longer be excluding them from our calculation of adjusted EBITDA. Management believes that providing this non-GAAP financial measure that excludes these items allows for meaningful comparisons between the Company's core business operating results and those of other companies, and provides the Company with an important tool for financial and operational decision making and for evaluating its own core business operating results over different periods of time. In addition to management's internal use of non-GAAP adjusted EBITDA, management believes that adjusted EBITDA is also useful to investors and analysts in comparing the Company's performance across reporting periods on a consistent basis. Management believes the foregoing to be the case even though some of the excluded items involve cash outlays and some of them recur on a regular basis (although management does not believe any of such items are normal operating expenses necessary to generate our bitcoin related revenues). For example, the Company expects that share-based compensation expense, which is excluded from adjusted EBITDA, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, and directors. Additionally, management does not consider any of the excluded items to be expenses necessary to generate the Company's bitcoin related revenue. The Company's adjusted EBITDA measure may not be directly comparable to similar measures provided by other companies in our industry, as other companies in the Company's industry may calculate non-GAAP financial results differently. The Company's adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to operating (loss) income or any other measure of performance derived in accordance with GAAP. Although management utilizes internally and presents adjusted EBITDA, the Company only utilizes that measure supplementally and does not consider it to be a substitute for, or superior to, the information provided by GAAP financial results. Accordingly, adjusted EBITDA is not meant to be considered in isolation of, and should be read in conjunction with, the information contained in the Company's Consolidated Financial Statements, which have been prepared in accordance with GAAP.  CLEANSPARK, INC.CONSOLIDATED BALANCE SHEETS(in thousands, except par value and share amounts) March 31,2024 September 30,2023 (Unaudited) ASSETS Current assets Cash and cash equivalents, including restricted cash $ 323,052 $ 29,215 Accounts receivable, net — 5 Inventory 991 809 Prepaid expense and other current assets 4,134 12,034 Bitcoin (See Note 2 and Note 5) 357,981 56,241 Derivative investment asset 505 2,697 Investment in debt security, AFS, at fair value 784 726 Current assets held for sale 324 445 Total current assets $ 687,771 $ 102,172 Property and equipment, net $ 670,510 $ 564,395 Operating lease right of use asset 228 688 Intangible assets, net 3,736 4,603 Deposits on miners and mining equipment 161,309 75,959 Other long-term asset 5,718 5,718 Goodwill 8,043 8,043 Total assets $ 1,537,315 $ 761,578 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 43,632 $ 65,577 Current portion of operating lease liability 177 181 Current portion of finance lease liability 52 130 Current portion of long-term loans payable 7,686 6,992 Dividends payable 2,842 — Current liabilities held for sale 637 1,175 Total current liabilities $ 55,026 $ 74,055 Long-term liabilities Operating lease liability, net of current portion 431 519 Finance lease liability, net of current portion — 9 Loans payable, net of current portion 5,090 8,911 Deferred income taxes 13,851 857 Total liabilities $ 74,398 $ 84,351 Stockholders' equity Common stock; $0.001 par value; 300,000,000 shares authorized; 225,469,791and 160,184,921 shares issued and outstanding, respectively 225 160 Preferred stock; $0.001 par value; 10,000,000 shares authorized; Series A shares;2,000,000 authorized; 1,750,000 and 1,750,000 issued and outstanding, respectively 2