Company: CLSKW
Filing Date: 2025-01-22
Form Type: DEF 14A
Source: 0000950170-25-007763
Chunk: 40

Company: CLEANSPARK, INC.
Filing Date: 2025-01-22
Form: DEF 14A
Chunk 40
---
 EH/s, outperforming guidance, and raised capital to achieve 50 EH/s during the first half of fiscal year 2025.

Target 3: Maintain a strong balance sheet and liquidity position. For fiscal year 2024, the Company ended with $431.7 million in liquid assets and $66.0 million in total debt, preparing the Company to achieve expansion targets set for fiscal year 2025.

Target 4: Preserve or enhance gross margin, or enhance energy efficiency. The Company reported mining bitcoin at a 56% gross profit margin, representing an increase from fiscal year 2023 due to mining fleet efficiency improvements, enhanced energy pricing, increased bitcoin prices, and sustained economies of scale from growth. The Company also significantly improved its energy efficiency and achieved 19.05 joules per terahash in fiscal year 2024.

Target 5: Increase bitcoin mining production. The Company reported 7,092 bitcoin mined during fiscal year 2024, net of mining pool fees, a 3% increase over the 6,903 bitcoin mined in fiscal year 2023.

Target 6: Increase hashrate as a percentage of global hashrate. For fiscal year 2024, the Company increased its global hashrate market penetration from approximately 2.3% to 4.4%, putting the Company among the largest miners in the world.

Long-Term Incentives

Long-term incentives are provided to executives as equity compensation in the form of RSUs granted under the 2017 Incentive Plan. They are awarded and vest in two different ways–time and performance. Time-based vesting is designed to retain high-performing executives who remain in anticipation of future rewards and incentivize the executive award recipient to increase the Company’s stock price through continued, consistent performance. Time-based awards granted by the Company generally vest evenly over a three-year period following the grant date. Stock awards such as RSUs also fall subject to our Insider Trading Policy, which prohibits hedging and restricts any unauthorized trading on the margin or pledging of Company stock by the Company’s executives. Performance-based vesting is also designed to focus executive attention on targets that the Company believes are likely to drive stockholder value. The Company has deployed two types of performance-based awards. They include achieving 1) operational targets, which are tied to the achievement of specific growth goals related to the Company’s hashrate, and 2) market targets, which are tied to creating sustainable stock-price appreciation.

OTHER COMP