CleanSpark DD

Copy forwarding the DD of ntidwell98 CleanSpark, The Future of Energy Management $CLSK ---- Bitcoin, Solar, EV, Green Energy

What is CleanSpark?

CLSK provides advanced energy software and control technology that allows energy users to obtain resiliency and economic optimization. The software is uniquely capable of enabling a microgrid to be scaled to the user's specific needs and can be widely implemented across residential, commercial, industrial, military, agricultural and municipal deployments. What is a Microgrid?

A localized group of electricity sources and storage batteries that normally operate connected to the traditional grid. A microgrid can also disconnect to “island” away from the traditional grid as economic or physical conditions dictate. CleanSpark’s software models and directs the microgrid’s operations. THE ONLY THING CERTAIN ABOUT THE UTILITY GRID IS THAT IT WILL FAIL. The events that took place in Texas recently are a prime example. CleanSpark’s proprietary solution helps large power users and residents sustainably lower costs by actively managing their generation, storage and load. Microgrid - Combining Solar and Storage mVSO

mVSO interface mVSO delivers flexible system optimization using advanced programming and big data principles to provide the ideal mix of distributed energy benefits customers care about: Cost Savings / Revenue Generation Energy Security / Resiliency Sustainability / GHG Reduction Outputs are your customized guide to maximizing your energy projects ROI. State-of-the art data analytics account for real costs, precise utility rate models, equipment performance, actual energy consumption and outlines what type of energy resources are to be built, what it will cost, and how it will perform once deployed. Regardless of your location or your utility rate, mVSO will deliver the optimal configuration of Solar PV, and Energy Storage to meet your objectives. The results are game changing for: Commercial and Industrial Campuses Retail Shopping Center Multi-Family Developments Neighborhoods Communities ​

mPulse CleanSpark's Distributed Energy Resource Management Software Solution

mPulse is a technology agnostic energy management and supervisory control software platform that is capable of managing a wide array of energy assets including Solar, Wind, Generators, Building Management and Energy Storage solutions to deliver the lowest cost energy with the highest level of resiliency. It includes the capability of forecasting energy consumption and weather data utilizing its Patented Forecasting solution. Analysis of the system's available resources and the user's needs determines how to manage the immediate and future energy needs. mPulse leverages standard communication protocols and interfaces such as Modbus RTU&TCP, DNP3, CAN and REST to name a few. It also supports plug and play protocols such as Sunspec and also is capable of participating in Demand Response programs using ADR 2.0. The system is designed to be technology agnostic and capable of integrating with a wide array of energy resources and management systems. Cyber-physical security is built into all levels of CleanSpark’s technology. ​

Switchgear CleanSpark Critical Power Equipment

CleanSpark can provide systems utilizing a variety of operating modes to meet a wide range of single or multiple-generator applications. Single-generator applications can operate in open or closed transition modes. Multiple- generator applications can be in an isolated bus or utility paralleled modes. Utility paralleling with soft loading onsite enables customers and utility power companies to parallel generators with the utility power grid for peak shaving and demand/load-side management of electrical power. CleanSpark offers synchronizing equipment in both low and medium voltage configurations ​

CleanSpark OpenADR Solutions

CleanSpark previously acquired GridFabric, a leading provider of OpenADR implementation and certification. GridFabric’s products allow companies to implement OpenADR on their platforms and gain certification with the OpenADR alliance, faster and more cost effectively than doing it themselves. With two product lines Plaid (Client) and Canvas (Server) - which together facilitate communication between power consuming, internet connected products and utilities or load aggregators, respectively. Canvas and Plaid do not both need to be present for successful programs: both products will be able to add value individually or together in any demand response or load shifting program that implements OpenADR. Canvas: Canvas implements a Virtual Top Node (VTN), the server side of the OpenADR protocol. It is used by Grid Operators and Aggregators to administrate load shifting programs. Plaid: Plaid implements a Virtual End Node (VEN), the client side of the OpenADR protocol. It is used by controls and IoT product companies to participate in load shifting programs. Entered into the Electric Vehicle (EV) charging station market through a new initiative focused on providing OpenADR software solutions to aid in load management for EV charging stations and balancing the impact the increased power demand has on the traditional grid. CleanSpark's GridFabric Completes OpenADR Certification for EV Charging Company, KIGT ​

p2kLabs

Feb. 06, 2020 announced the acquisition of all of p2klabs, Inc. a design and innovation consulting firm that specializes in applying design, technology, and business process methodologies to create intuitive digital experiences and journeys that help transform and grow businesses. ​

Case Studies

Rams Hill Client: Rams Hill Golf Club Location: Borrego Springs, California Completion: 2015 CleanSpark designed a behind-the-meter 12 kV scalable microgrid for customer savings. The infrastructure enables true plug and play capibility for future distributed energy resource deployment. Camp Pendleton Client: Camp Pendleton Location: San Diego, California Completion: 2013 Critical Power Fractal Grid (CPFD) With demand management enabled by CleanSparks mPulse software this CPFD is able to curtail non-critical energy demand in response to current or predicted conditions of the microgrid or utility grid. In addition the system can peak shave by supplying virtually instantaneous energy to cover sudden usage spikes and reduce energy costs. The grid architecture also incorporates cyber-physical security, a high value feature sought by the D.O.E. ​

Costa Rica/Tesla

Located on an industrial equipment retail facility in San Jose, Costa Rica, the project utilizes CleanSpark's patented mPulse controller to coordinate all aspects of the system and improve overall performance. The microgrid will consist of a 222-kW PV solar system, and a Tesla 111-kW/223kWh Powerpack provided by CleanSpark. The system is integrated with standby diesel generation for use in the event of a sustained power disruption. This will be one of the first Tesla battery systems deployed in Costa Rica. On Sept. 21st 2020, CLSK announced the commissioning of its software on a new solar plus storage microgrid project in Central America. CleanSpark is providing its patented mPulse controls with market-based forecasting and operation. The Company has also procured and will incorporate the Tesla (Nasdaq:TSLA) PowerPack 2 battery energy storage system which will provide 558kW/1115kWh storage. Additionally, the project's solar installation includes 480kW AC, 531kW DC of PV (photovoltaic) solar panels. This represents the second microgrid located in Costa Rica with an mPulse controller paired with a Tesla energy storage solution. ​

US Embassy

On Sept. 23rd announced that it received a contract to provide intelligent switchgear upgrades and support for a US Embassy located on the African continent. According to the agreement, CleanSpark will service the paralleling switchgear controls at the Embassy for a term of 5 years including upgrades to the equipment. Additionally, the Company will provide technical and online support to Embassy personnel. ​

mVoult

Taking Orders Spring 2021 mVoult is a smart power system that provides a single solution for resilient, reliable, and cost-effective energy for residential properties of all sizes. The systems are configured to your individual needs upon installation with flexibility for future expansion. The essential components included with the purchase of an mVoult power system include a Residential Optimized Smart Controller and Mobile App. Add-on the following Clean Energy Sources: Energy Storage (Battery), Generator, Solar Array, and more… The system is fully configurable according to your needs. You can start small and expand the modular system without significant design changes as your goals or requirements grow. mVoult can be integrated with a brand new or existing system including Solar, Wind, Generators, and Energy Storage solutions to deliver the lowest cost energy with the highest level of resiliency. Track your mVoult power supply and cost savings with our mobile App which is included with the system. An easy to understand dashboard gives insight into the system through multiple features such as energy usage, cost savings, or energy forecast. Our expert consultants can help you to choose the system that is right for you. Our professional team or certified partners will install your system in a clean and efficient manner with minimal disruptions. mVoult stores energy when the cost of energy is cheap, and it expends stored energy when the cost of energy is expensive. ​

BITCOIN MINING OPERATION (ATL Data Center)

On December 10, 2020 CleanSpark acquired ATL Data Centers, LLC ("ATL") for up to $19.4 million in shares of the Company's common stock. 5 Acres land / perimeter fencing 48,000 sq. ft. facility Dual GA Georgia Power Grid Feeds Two 3000 AMP Services 20 MW committed, Power expandable up to 80 MW This transaction represents the first strategic acquisition as part of a larger growth plan following CleanSpark's recent $40M institutional investment. ATL creates a unique business opportunity as a full-scale, profitable demonstration facility for the Company. As part of the first phase, the Company has contracted with the local municipality to expand the power to the facility from 20MW to 50MW. It is expected that this expansion will begin promptly and be completed in April 2021. 315 Ph/s, 30 MW or 2.2 BTC/per day beginning on Feb. 22nd 2021. Estimating $100,000 per day @ ~$50,000 ~1.3 Eh/s, 50 MW by July 2021 which will result in 6-9 BTC per day $115 million-$150 million annual revenue from BTC mining after July 2021 expansion is complete. THIS IS ONLY THE FIRST STRATEGIC ACQUISITION. This will increase the projected ~1.3 Eh/s, 50 MW mining capacity significantly. IN LATE STAGE TALKS with other possible acquisition targets. Announcements coming in weeks/months. Private/Public mining companies have expressed interest in Energy management solutions Possible further expansion to the ATL Data Center campus. Mined 100th BTC on Feb. 17th 2021. Their Bitcoin Mining team has deep connections within the space and 8+ years experience in cryptocurrency mining. 50/50 BUY SELL RATIO on all mined BTC. VERY BULLISH on Bitcoin in the long term. To quote the CEO "holding slightly more than selling". Looking to run ATL Data Center and other BTC mining operations 100% GREEN ENERGY, emphasis on Nuclear Energy. ​

FINANCIALS/ACCOMPISHMENTS

Current Price: $36.31 Market Cap: $880 million Outstanding Shares: 24.23 million Float: 22.54 million Short Interest: 6.28% Insider Holdings: 21.36% Institutional Holdings: 21.18% CleanSpark more than doubled its comparable quarterly revenues, with quarterly revenue of $2.26 million, an increase of 130% from $0.98 million for the prior year. $1.6 million from energy management solutions, $700k from BTC (only 21 days of operation was recorded for this number). CleanSpark has increased revenue by more than double every year since 2018 and is projecting a 300% increase this year. 2020: $10M , 2021: $30M (extremely conservative) Gross Margin increased to 41% to $0.92 million compared to 10% and $0.10 million to the prior year. Loss from operations increased to $6.2 million compared to $3 million for the prior year. Expecting profitability later this year. The Company decreased its revenue concentration risk, for the three months ended December 31, 2020 37% of its revenues were derived from a single customer as compared to 91% in the same year-ago period. Cash and cash equivalents totaled $25.6 million as of December 31, 2020, as compared to $3.1 million on September 30, 2020, an increase of $22.5 million. Entered into the Electric Vehicle (EV) charging station market through a new initiative focused on providing OpenADR software solutions to aid in load management for EV charging stations and balancing the impact the increased power demand has on the traditional grid. Implemented new sales and marketing initiatives resulting in increased revenues, contracted backlog, and proposal pipelines. Received a large switchgear order from a Houston, Texas developer in support of microgrids to be built for the nation's largest retail chain. The end-use customer is the world's largest retail chain, operating more than 11,500 locations worldwide. WALMART??? Google: "USA largest retail chain", Google: "How many stores does Walmart operate?" The CleanSpark team released a suite of usability enhancements to both their mPulse and mVSO products, including self-serve reporting of monthly and ad-hoc site telemetry as well as improvements in mVSO ease of use to allow developers to completed scenarios quickly and more efficiently. Updates to mPulse forecasting and control algorithms ensures optimal site operation aligned with pre-determined targets. CleanSpark continues to grow its software team with specialists in web and cloud development. Expect to see the strongest revenues related to our energy segments in our third and fourth fiscal quarters. Winter is the slow season. Bitcoin mining revenues contributed significant profitable revenue for the quarter, making up approximately 32% of our total quarterly revenues. This is especially meaningful considering our Bitcoin mining revenues consisted of only 21 full days of mining in December. CLSK backlog as of Feb. 12th remains strong at approximately $7.3 million, an increase of $0.8 million from December 2020. As stated, the goal is to mine Bitcoins at the lowest rates nationwide and we expect to achieve greater than 80% gross profit margin on our Bitcoin mining activities. MARKET

The Global Microgrid Market size was valued at USD 28.80 Billion in 2019 and is forecasted to reach USD 61.18 Billion by 2027 at a CAGR of 10.5%. After the recent events in Texas, I can see this number going higher than projected. As more similar events (Deep freeze, Heat waves, etc.) occur, the demand for microgrids will skyrocket. Blockchain technology is taking the world by storm. With popularity increasing, mining is one of the hottest emerging sectors today. The biggest hurdle in cryptocurrency mining is ENERGY. CLSK will be mining at a significantly lower cost than other mining operations. When word spreads that CLSK software can lower the overall costs to mine cryptocurrencies, they will flock. Energy is the main variable cost in mining so it would be dumb not to lower that cost. CONCERNS

Possible dilution to fund further development in products, software, and mining operation acquisitions/expansions. Lose focus of main business, energy management solutions, and become fixated on bitcoin mining. There was a recent short report by a no-name short seller, Culper Research. This report is completely baseless and has been addressed by both Chairman and CEO. The flood of ambulance chaser law firms have plastered CLSK's recent media pages and has caused a lot of fear and uncertainty amongst novice investors. CLSK has not be served any lawsuits despite what the flood of reports. SPECULATION

Recent presidential election and senate election have turned both the oval office and Congress in favor of democratic views. There is discussion the Biden Administration will give tax benefits/incentives to companies that are working towards a more sustainable future. Medicinal and Recreational marijuana are the MOST ENERGY INTENSIVE agricultural crops grown in the US. With a Blue senate and President, Marijuana legalization is inevitable. This will further increase the demand for microgrids and energy management solutions. This could be the next emerging market they will enter. OUTLOOK

I am very bullish on the outlook of CleanSpark. They are poised for tremendous growth and their management team has proven to be top-notch. 2020 proved to be a pivotal year after 3 beneficial acquisitions (GridFabric, p2kLabs, and ATL Data Center) and they are on track for a banner year in 2021. The revenue from bitcoin mining will help CLSK achieve profitability faster than anticipated previously and currently there is not much sign Bitcoin will slow down ($55,000 as I type this). They have set them up for great success and are positioned in several huge markets ( EV, Solar, Bitcoin).