Small cryptocurrency miner CleanSpark (NASDAQ: $CLSK) reported first-quarter financial results that disappointed Wall Street, causing its stock price to decline.
Bitcoin (cryptocurrency: $BTC) mining company reported a net loss of $378.3 million for the quarter ended March 31, a significant increase compared to the $138.8 million loss reported for the same period last year.
A loss of $1.52 per share, more than triple the analyst expectation of a $0.41 loss.
The underperformance was primarily due to a $224.1 million fair value loss on Bitcoin, reflecting the volatility of the cryptocurrency market.
Quarterly revenue totaled $136.4 million, a 25% decline from $181.7 million in the same period last year and below the market consensus expectation of $154.3 million.
On a positive note, CleanSpark stated that it expanded its infrastructure, doubling the megawatts (MW) covered by its contracts.
Management emphasized on the earnings call with analysts and media that CleanSpark is transitioning toward leasing computing power and AI data centers.
Company executives also heavily promoted that the company's Bitcoin holdings increased by 14% year-over-year in the first quarter to $925.2 million.
As of the end of the quarter, CleanSpark had $260.3 million in cash, total assets of $2.9 billion, and long-term debt of $1.8 billion.
CleanSpark has a market capitalization of $3.66 billion, placing it in the small-cap category, which includes any security with a market capitalization below $10 billion.
CLSK stock fell 7% after announcing its latest earnings report on May 12. Over the past 12 months, the company's stock has risen 38% and is currently trading at $13.28.