Company: CLSKW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000950170-25-067219
Chunk: 5

Company: CLEANSPARK, INC.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 3
Chunk 5
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The following discussion about the Company’s market risk exposures involves forward-looking statements. Actual results could differ materially from those discussed in the forward-looking statements.

Market Price Risk of Bitcoin. The Company holds a significant amount of bitcoin; therefore, we are exposed to the impact of market price changes in bitcoin on its bitcoin holdings. This exposure would generally manifest itself in the following areas:

•The Company accounts for its bitcoin holdings at fair value and records changes in fair value throughout the periods being reported.

•Declines in the fair market value of bitcoin will impact the cash value that would be realized if the Company were to sell its bitcoin for cash, therefore having a negative impact on its liquidity.

At March 31, 2025, the Company held approximately 11,869 bitcoins and the fair value of a single bitcoin was approximately $82,537, meaning that the fair value of its bitcoin holdings on that date was approximately $980 million. A 10% increase or decrease in the fair value of bitcoin as of March 31, 2025, would have increased or decreased the total cash value that could be realized if the Company were to sell its bitcoin for cash by approximately $98.0 million.