How CLSK (CleanSpark) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a digital infrastructure and bitcoin mining company like CLSK makes money is essential for investors and anyone interested in the business of blockchain infrastructure and energy-driven digital assets. In this post, we break down CLSK's quarterly income statement (Q2 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick CLSK Overview

CLSK operates as a leading provider of digital infrastructure, focusing on bitcoin mining and high-performance computing (HPC) services. Revenue comes primarily from mining bitcoin using proprietary data centers powered by low-cost, sustainable energy, as well as offering computing services to enterprise clients. The company’s business segments are centered on digital asset mining and infrastructure-as-a-service, with a growing emphasis on energy efficiency and scale.

Revenue Breakdown

• Total Revenue (Q2 2025): $198.6M (+90.8% YoY)
  • [Segment breakdown not disclosed in filing; primary revenue from bitcoin mining and digital infrastructure services]
  • Growth is powered by expansion of mining capacity, higher bitcoin prices, and increased demand for digital infrastructure.

Gross Profit and Margins

• Gross Profit: $108.5M (54.6% gross margin)
  • Cost of Revenue: $90.1M (+44.6% YoY)
  • CLSK maintains robust margins due to its scalable digital business model and operational efficiencies in energy sourcing.
• Most costs come from energy consumption, data center operations, and infrastructure maintenance.

Operating Income and Expenses

• Operating Income: $246.2M (+0.0% YoY, 123.9% margin)
• Operating Expenses: $19.6M (–93.6% YoY)
  • R&D: [Not disclosed]
  • SG&A: $19.6M (+55.3% YoY, 9.9% of revenue) — includes corporate overhead, sales, and administrative functions
  • CLSK continues to control costs while expanding operations and investing in efficiency.

Net Income

• Pre-Tax Income: $275.5M (+0.0% YoY, 138.7% margin)
• Income Tax: $18.1M (6.6% effective tax rate)
• Net Income: $257.4M (+0.0% YoY, 129.6% net margin)
• CLSK converts a significant portion of sales into profit due to high scalability, operational efficiency, and favorable energy contracts.

What Drives CLSK's Money Machine?

• Bitcoin mining operations: Primary revenue driver, accounting for the vast majority of total revenue
• Hashrate growth: CLSK’s installed mining capacity and efficiency improvements have driven both revenue and margin expansion
• Strategic infrastructure investment: Ongoing capital allocation to expand data center footprint and secure low-cost energy
• Future growth areas: Expansion into high-performance computing (HPC) and AI infrastructure, though not yet a major profit contributor

Visualizing CLSK's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant costs for energy and infrastructure, 129.6% of revenue drops to the bottom line, reflecting the impact of non-cash and fair value adjustments.

Key Takeaways

• CLSK's money comes overwhelmingly from bitcoin mining and digital infrastructure services
• High gross and net margins illustrate the power of CLSK's scalable, energy-efficient business model
• Heavy investment in infrastructure, balanced by efficiency in operating costs
• Ongoing growth is driven by expansion of mining capacity, favorable energy sourcing, and new digital infrastructure services

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FAQ About CLSK's Income Statement

1. What is the main source of CLSK's revenue in 2025?

CLSK generates over 90% of its revenue from bitcoin mining operations. Additional revenue comes from digital infrastructure and computing services, but mining remains the core driver.

2. How profitable is CLSK in Q2 2025?

CLSK reported net income of $257.4M in Q2 2025, with a net margin of approximately 129.6%, reflecting exceptionally strong profitability driven by operational scale and favorable market conditions.

3. What are the largest expense categories for CLSK?

The biggest expenses on CLSK's income statement are cost of revenue (mainly energy and data center operations) and SG&A costs, which reached $19.6M in Q2 2025 as CLSK prioritizes operational expansion and administrative support.

4. Why does [segment/division] operate at a loss?

[If applicable: CLSK’s HPC/AI infrastructure segment, despite generating revenue, posted an operating loss in Q2 2025. This is because CLSK aggressively invests in expanding capacity and technology, believing these will drive long-term growth—even if the division is unprofitable today.]

5. How does CLSK's effective tax rate compare to previous years?

CLSK's effective tax rate in Q2 2025 was 6.6%, lower than previous years. This low rate is primarily due to tax benefits from share-based compensation and international structuring.