Company: CLSKW
Filing Date: 2025-11-25
Form Type: 10-K
Source: 0001193125-25-297510
Chunk: 36

Company: CLEANSPARK, INC.
Filing Date: 2025-11-25
Form: 10-K
Item: Item 6
Chunk 36
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 growing treasury management and hedging activities.The table below reconciles the Company’s derivative income to its related proceeds from DAM activities for the period presented:

     For the Year Ended

      ($ in thousands)
     September 30, 2025

     Loss on derivative securities, net
     $
     (1,546
     )

     Add: Fair value in excess of strike price on settled written DAM Options
      
     3,204

     Add: Loss on value assigned to costless Bitmain contract option
      
     6,850

     Add: Loss on other non-DAM Investments
      
     1,247

     Proceeds from premiums
     $
     9,755

   These activities provided approximately $12.1 million of proceeds from premiums and incremental Spot+ trading during the fiscal year, supplementing operating cash flows from bitcoin mining. Management views DAM activities as an integrated component of its treasury strategy and liquidity management, rather than as speculative trading. The Company expects to continue its Spot+ and yield strategies at measured levels relative to its total bitcoin balance and operating requirements. The Bitmain options are bitcoin-linked derivatives but were not a result of the Company’s DAM strategy and are not included in DAM activity. The Company had no DAM derivative positions open as of September 30, 2025.The table below presents the Company’s DAM derivative activity for the year ended September 30, 2025, which supports the proceeds reconciliation above:

     Average BTC Price at Contract Date
      
     Average BTC Strike Price
      
     BTC Equivalent Contracts
      
     Proceeds from Premiums ($000's)
      
     Effective Sales Price to Spot
      
     Annualized Premium Yield

     Spot+ Calls
     $
     110,573
      
     $
     112,630

     1,100
      
     $
     734

     102.5
     %
      
     —

     Yield Calls
      
     113,055

     121,181

     4,025
      
     $
     1,973

     —

     12.0
     %

     Yield Puts
      
     116,173

     107,833

     260
      
     $
     69

     —

     8.0
     %

     Bitmain options hedge
      
     116,265

     111,000

     690