CleanSpark Reports $378M Loss on Bitcoin Price Decline

Bitcoin miner CleanSpark posted a $378.3 million net loss for its fiscal second quarter ended March 31, 2026, driven by a sharp decline in Bitcoin prices and significant non-cash charges, according to the company’s earnings filing released on May 11. Revenue from Bitcoin mining fell 24.9% year-over-year to $136.4 million, down from $181.7 million in the same period a year earlier. The company’s stock declined 0.77% in after-hours trading following the announcement.

Non-Cash Charges Drive Headline Loss

The headline loss was driven largely by a $224.1 million non-cash hit tied to the fair value of Bitcoin held on CleanSpark’s balance sheet. Under current GAAP accounting standards, companies holding digital assets must mark them to market each quarter, exposing earnings to significant volatility even when coins are not sold.

CleanSpark CFO Gary Vecchiarelli addressed the impact during the company’s earnings call, noting that the quarter’s net loss “includes unfavorable non-cash charges of approximately $263 million related to GAAP mark-to-market adjustments on Bitcoin balances.” On a per-share basis, CleanSpark reported a loss of $1.52 per basic share, compared with a $0.49 loss in the year-ago quarter. Analysts polled by Zacks Investment Research had expected a loss of roughly $0.25 per share, making the miss substantial.

Adjusted EBITDA deteriorated to negative $241.2 million, compared with negative $57.8 million a year earlier, reflecting both the mark-to-market adjustments and rising depreciation and amortization charges of $115.9 million.

Operational Metrics Show Growth Despite Financial Headwinds

Despite the financial setback, CleanSpark pointed to continued operational progress. The company increased its average monthly hashrate by 18% and grew Bitcoin holdings by 14% compared with the prior-year period. It also doubled its contracted megawatts year-over-year, including 585 MW of ERCOT-approved capacity.

Gross margins fell to roughly 40% from 47% in the prior quarter, according to the filing.

Balance Sheet and Strategic Positioning

The firm ended the quarter with $260.3 million in cash, $925.2 million in Bitcoin, and total current assets of $1.1 billion, maintaining what it described as a strong liquidity position to weather continued market turbulence. CleanSpark signaled a broader strategic shift toward digital infrastructure and data center development, joining a growing number of Bitcoin miners exploring diversification into high-performance computing and AI workloads.