Company: CLSKW
Filing Date: 2025-01-22
Form Type: DEF 14A
Source: 0000950170-25-007763
Chunk: 56

Company: CLEANSPARK, INC.
Filing Date: 2025-01-22
Form: DEF 14A
Chunk 56
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| Capital Stewardship       |
| Cash Flow                 |
| Financial Transparency    |
| Financial Performance     |
| Corporate Culture         |
| Industry Leadership       |
| Stock Price               |

Bitcoin Mining Metrics

Our Bitcoin Mining Metrics are comprised of the following:

Operating Hashrate, which we define as the total hashrate produced across our datacenters;

Operating Datacenter Capacity, which we define as the total power infrastructure and the associated datacenters that power our operations;

Fleet efficiency, which we define as the blended joules per terahash efficiency of our total mining fleet;

Uptime, which we define as the percentage of available mining hours in the year that our Operating Hashrate and Operating Datacenter Capacity is utilized;

Power cost per BTC mined, which we define as the marginal all-in energy expense per bitcoin mined;

ASIC ROI, which we define as the time it takes to recover the capital expenditure (“ CapEx ”) spend per terahash; and

Infrastructure ROI, which we define as the time it takes to recover the CapEx spent for a megawatt of Operating Data Center Capacity

Management is measured by the Compensation Committee based on its ability to improve or maintain performance based on each of these measures on an ongoing basis. Many of these metrics are subject to market conditions and therefore remeasured frequently by both management and the Board. These metrics capture the direct performance of the mining business, but also indirectly capture other critical activities such as sourcing efficient energy for datacenter projects, cost effective development, supply chain management with ASIC vendors, internal technology and operational processes, and capital market activities making them strong criteria by which management can be assessed.

Revenue and Adjusted EBITDA

Revenue and Adjusted EBITDA serve as a critical reflections of executive financial performance, particularly when considering their alignment with the Company’s executive compensation structure designed to incentivize operational excellence. For executives whose compensation is intricately tied to specific performance metrics, revenue growth can be a direct indicator of their success in enhancing the Company’s operational prowess and market competitiveness. For instance, by effectively managing energy efficiency and uptime, executives can optimize operational costs and increase production, leading to improved revenues and margins.

An increase in revenue, a tangible outcome of strategic decision and operational improvements, justifies the performance-based component of executive compensation, ensuring their remuneration is closely aligned with the Company’s growth and operational success. Thus, the revenue figures not only represent the Company’s financial achievements but also mirror the effectiveness of its leadership in steering the organization towards operational excellence.

#### CleanSpark412025