CleanSpark , Inc. (NASDAQ:CLSK), a Nevada-based company specializing in finance services, announced today the appointment of BDO USA, P.C. as its new independent registered public accounting firm. This change comes into immediate effect following the dismissal of the former auditor, MaloneBailey, LLP.
The Audit Committee of CleanSpark's Board of Directors approved the transition on Wednesday, July 3, 2024. The company's consolidated financial statements for the years ending September 30, 2023, and 2022, audited by MaloneBailey, did not contain any adverse opinions or disclaimers. Additionally, there were no disagreements on accounting principles or practices, financial statement disclosures, audit scope, or procedures that would have led to a mention in MaloneBailey's report.
However, CleanSpark's Annual Report for the fiscal year ended September 30, 2023, identified a material weakness in the company's internal control over financial reporting. This weakness pertained to general information technology controls over third-party systems and applications relevant to financial statement preparation.
MaloneBailey has been provided with CleanSpark's disclosure in response to the auditor change and has been requested to furnish a letter to the SEC stating their agreement or disagreement with the company's statements. The said letter from MaloneBailey is attached as Exhibit 16.1 to the filing.
During the fiscal years ended September 30, 2023, and September 30, 2022, and the interim period up to July 3, 2024, CleanSpark did not consult BDO on any accounting principles or transactions, nor on any auditing or financial reporting issues that could have influenced the company's decision-making processes. Furthermore, there were no disagreements or reportable events between CleanSpark and BDO during this period.
In other recent news, CleanSpark Inc. continues to make strides in the Bitcoin mining industry. The company's June operations update showed a significant growth in mining operations and power acquisition efforts, leading Cantor Fitzgerald to increase its shares price target to $28.00. CleanSpark reported a 13.5% month-over-month increase in its hashrate and mined 445 Bitcoins, up from 417 in May. The company's power acquisition strategy was notably active, acquiring five sites in Georgia and 400 MW of capacity in Tennessee, expanding its power capacity pipeline to over 1 GW.
CleanSpark's Q2 revenue for fiscal year 2024 reached a record-breaking $111.8 million, a 163% increase from the previous year, with an adjusted EBITDA of $181.8 million. The company also reported a net income of $126.7 million for the recent quarter, a substantial turnaround from the net loss of $18.5 million from the previous year. Furthermore, CleanSpark has been active in mergers and acquisitions, with plans to finalize the acquisition of a site in Wyoming.
Cantor Fitzgerald has given CleanSpark an Overweight rating, highlighting the company's efficient mining fleet and strong liquidity position. The firm anticipates that once CleanSpark has fully deployed its mining capacity, the average fleet efficiency will improve to below 20 J/TH. These recent developments reflect CleanSpark's ongoing growth and operational enhancements.
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