# EDGAR Filing Document

**Accession Number:** 0000827876
**File Stem:** 0000000000-23-001189
**Filing Date:** 2023-2
**Character Count:** 34958
**Document Hash:** 9bd1085a2c079685717804c325eb7692
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-001189.hdr.sgml**: 20241001

**ACCESSION NUMBER**: 0000000000-23-001189

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230206

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CLEANSPARK, INC.
- **CENTRAL INDEX KEY:** 0000827876
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **IRS NUMBER:** 870449945
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** UPLOAD
- **SEC FILE NUMBER:** 001-39187

**BUSINESS ADDRESS:**
- **STREET 1:** 10624 S. EASTERN AVE.
- **STREET 2:** SUITE A - 638
- **CITY:** HENDERSON
- **STATE:** NV
- **ZIP:** 89052
- **BUSINESS PHONE:** (702) 941-8047

**MAIL ADDRESS:**
- **STREET 1:** 10624 S. EASTERN AVE.
- **STREET 2:** SUITE A - 638
- **CITY:** HENDERSON
- **STATE:** NV
- **ZIP:** 89052

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STRATEAN INC.
- **DATE OF NAME CHANGE:** 20141201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SMARTDATA CORP
- **DATE OF NAME CHANGE:** 19880120
**PUBLIC REFERENCE ACCESSION NUMBER**: 0000950170-22-026564

## Text-Extract

```

United States securities and exchange commission logo

                              February 6, 2023

       Gary A. Vecchiarelli
       Chief Financial Officer
       CleanSpark, Inc.
       2370 Corporate Circle
       Suite 160
       Henderson, NV 89074

                                                        Re: CleanSpark, Inc.
                                                            Form 10-K for the
Fiscal Year Ended September 30, 2022
                                                            File No. 001-39187

       Dear Gary A. Vecchiarelli:

              We have reviewed your filing and have the following comments. In
some of our
       comments, we may ask you to provide us with information so we may better
understand your
       disclosure.

              Please respond to these comments within ten business days by
providing the requested
       information or advise us as soon as possible when you will respond. If
you do not believe our
       comments apply to your facts and circumstances, please tell us why in
your response.

            After reviewing your response and any amendment you may file in
response to these
       comments, we may have additional comments.

       Form 10-K for the Fiscal Year Ended September 30, 2022

       General

   1.                                                   In future filings,
please provide disclosure regarding any significant crypto asset market
                                                        developments material
to understanding or assessing your business, financial
                                                        condition and results
of operations or share price. Consider each comment issued in our
                                                        January 20, 2023 letter
relating to your Post-Effective Amendment No. 2 to your
                                                        Registration Statement
on Form S-3 filed on December 15, 2022, and make the relevant
                                                        disclosures in future
filings. For additional guidance, please see the Division of
                                                        Corporation Finance   s
Sample Letter to Companies Regarding Recent Developments in
                                                        Crypto Asset Markets
issued by the Staff in December 2022.
   2.                                                   In future filings,
please include a comprehensive breakeven analysis for your bitcoin
                                                        mining operations or
any other crypto assets that you earn or mine that compares the cost
                                                        to earn or mine one
crypto asset with the value of the crypto asset.
 Gary A. Vecchiarelli
FirstName
CleanSpark,LastNameGary A. Vecchiarelli
             Inc.
Comapany6,NameCleanSpark,
February    2023           Inc.
February
Page 2 6, 2023 Page 2
FirstName LastName
Lines of Business, page 5

3.       In future filings, please disclose the percentage of your energy usage
that uses clean and
         renewable energy resources as well as the locations in which you use
these resources. In
         addition, please identify the types of    clean and renewable
energy sources you use and
         explain how you plan to increase your usage.
4.       In future filings, please disclose whether your data centers and
campuses support only
         your miners or whether you host miners for other companies.
5.       In future filings, to the extent that you plan to expand your mining
business to mine crypto
         assets other than bitcoin, please identify the crypto assets you plan
to mine, if known, and
         please disclose the procedures and policies related to selecting the
crypto assets. In
         addition, disclose the stage of any material strategic acquisitions
and an estimated time
         line, as well as the estimated costs, and the sources of capital for
any such planned
         acquisitions.
6.       In future filings, please disclose here whether you intend to hold or
monetize the
         mined bitcoin, and please disclose your policies related to the uses
for the mined bitcoin.
         Disclose here how you monetize your bitcoin, including any exchanges
you use, whether
         you have any agreements with any exchanges, and whether you store any
of your crypto
         asset holdings on any exchanges    platforms. In this regard, we note
your disclosure on
         page 21 that you exchange your bitcoins directly for U.S. dollars on
Coinbase. In
         addition, please disclose whether you hold any other types of crypto
assets. If so, please
         identify the types and amount of such crypto assets, and discuss the
purpose of holding the
         other types of crypto assets.
Working Capital Items, page 6

7.       In future filings, please disclose the range, mean and average age of
your miners, the
         average downtime attributed to scheduled maintenance and non-scheduled
maintenance as
         well as the average, mean and range of the energy efficiency of your
miners.
Distribution, Marketing and Strategic Relationships, page 7

8.       We note your disclosure on page 7 that Coinmint has agreed to house
and power the
         mining equipment in its facilities and that it has agreed to use
commercially reasonable
         efforts to mine bitcoin on your behalf. In future filings, please
disclose whether Coinmint
         contributes your computing power to a mining pool that it or another
third-party operates,
         and please identify the mining pool operator or operators. In this
regard, we note your
         disclosure regarding Foundry Digital on page 18. Also, please discuss
how mining pools
         operate more generally, and disclose whether the mining pools you use
provide services
         only for bitcoin mining or if they are multi-crypto asset mining
pools. Also disclose the
         fees associated with participating in the mining pools and whether the
payouts you receive
         from Coinmint, Foundry Digital and any other mining pools are limited
to only bitcoin. In
         addition, please disclose the processing power you contribute to each
mining pool you
 Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 3
         currently use.
Cybersecurity, page 10

9.       In future filings, please disclose your custody procedures and
arrangements by identifying
         all third-party custodians and the material terms of the agreements,
including:
             what portion of your bitcoin or other crypto assets, if any, are
held in hot wallets and
              cold wallets;
             the geographic location where crypto assets are held in cold
wallets;
             whether any persons (e.g., auditors, etc.) are responsible for
verifying the existence
              for the crypto assets held by the third party custodian(s);
             a description of your custodian   s insurance and the degree to
which those policies
              provide coverage for the loss of your crypto assets; and
             whether any insurance providers have inspection rights associated
with the crypto
              assets held in storage.
10.      In future filings, please describe the terms and provisions of any
insurance policies
         covering your crypto assets in the event of loss or fraud and any
insurance policies
         covering your miners, including the amount of coverage, term and
termination provisions,
         renewal options and limitations on coverage. To the extent that you do
not have insurance
         coverage for your crypto assets or miners, please add risk factor
disclosure.
The value of bitcoin has historically been subject to wide swings, page 17

11.      In future filings, please expand this risk factor to include
quantitative information
         regarding the wide swings of bitcoin prices.
If the SEC or another regulatory body consider bitcoin to be a security, page
28

12.      In future filings, please confirm whether you mine crypto assets other
than bitcoin or have
         plans to mine crypto assets other than bitcoin. If so, please identify
the relevant assets
         and expand this risk factor to briefly discuss the process and
framework you have in place
         to determine whether any crypto assets that you may mine, hold or
acquire are securities
         as defined under Section 2(a)(1) of the Securities Act. In this regard
we note your
         references on page 28 and elsewhere to "bitcoin or other
cryptocurrencies we mine or
         otherwise acquire or hold for our own account."
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Results of Operations for the Year Ended September 30, 2022 and 2021, page 37
FirstName LastNameGary A. Vecchiarelli
13.    In future filings, please revise to include a discussion regarding your
daily average GPUs
Comapany    NameCleanSpark,
       and their                Inc.and difficulty for each of the periods
presented. Refer to Item
                 average hashrate
       303(a)
February       of Regulation
          6, 2023  Page 3     S-K and SEC Release No. 33-10751.
FirstName LastName
 Gary A. Vecchiarelli
FirstName
CleanSpark,LastNameGary A. Vecchiarelli
             Inc.
Comapany6,NameCleanSpark,
February    2023           Inc.
February
Page 4 6, 2023 Page 4
FirstName LastName
Non-GAAP Measure, page 39

14.      In future filings, please revise your non-GAAP disclosure for the
following:
             Revise to clarify how the following adjustments for (a) other
impairment loss (related
              to bitcoin), (b) realized gain on sale of bitcoin, and (c) legal
fees meet the definitions
              in Item 10(e)(1)(ii)(B) of Regulation S-K, and Questions 100.01
and 102.03 of the
              Compliance and Disclosure Interpretations on Non-GAAP Financial
Measures.
             We note your disclosure on page 39 that you have excluded non-cash
items that you
              believe are not reflective of your general business performance
and for which the
              accounting requires management judgment and the resulting
expenses could vary
              significantly in comparison to other companies. In future
filings, please revise to
              disclose in sufficient detail the nature and amounts for all
material non-cash items
              that are excluded. Refer to Question 100.04 of the C&DI on
Non-GAAP financial
              measures.
Note 2. Summary of Significant Accounting Policies
Revenue Recognition, page F-11

15.      Please tell us the following regarding your revenue recognition:
             Tell us the amount of revenue earned by each of your owned and
operated facilities
             and your co-location and hosting revenues, for each of the periods
presented.
             Please tell us the amounts of your energy costs, by provider, and
provide us with a
             summary of the significant terms of your utility power purchase
agreements and your
             renewable energy credits, for the periods presented, if
significant.
16.      Please provide us your analysis supporting your revenue recognition
policy for your
         mining pool participation activities. In your response, where
appropriate, reference for us
         the authoritative literature you relied upon to support your
accounting:
         Step 1 of ASC 606
             Provide us a representative sample contract and cross reference
your analysis to the
              specific provisions of that contract.
             Tell us whether there are any penalties for contract termination
by either party and
              explain when a contract begins and describe its term for
accounting purposes. As it
              appears that you may cancel at any time, tell us what happens if
you cancel midterm.
              Also explain whether you can withdraw computing power midterm and
reinstitute it
              later that same day.
         Step 2 of ASC 606
             Substantiate how the provision of computing power to the mining
pool is your sole
              performance obligation.
         Step 3 of ASC 606
             Identify the consideration specified in the contract, how the
amount of consideration
              is determined and explain how you apply the variable
consideration constraint in
              ASC 606-10-32-11 through 32-13.
             Tell us the payment terms for cryptocurrencies earned from the
mining pool operator
              and substantiate how valuing these assets upon receipt is not
materially different than
 Gary A. Vecchiarelli
FirstName
CleanSpark,LastNameGary A. Vecchiarelli
             Inc.
Comapany6,NameCleanSpark,
February    2023           Inc.
February
Page 5 6, 2023 Page 5
FirstName LastName
              the fair value at contract inception.
                Tell us the relevance of the fair value of cryptocurrencies on
the date received being
              not materially different than the time you earned the award from
the mining pool
              operator.
                Tell us why it is appropriate to deduct transaction fees to the
mining pool operator
              from revenue. Clarify whether the single amount (i.e., the net
fees received)
              represents the transaction price paid to you in satisfaction of
your performance
              obligation to the pool operator and if the amounts retained by
the pool operator relate
              to the activities it must undertake to fulfill its contract with
you.
                Provide your analysis of the guidance for determining the
transaction price beginning
              at ASC 606-10-32-2; that is, based on your contract with the pool
operator, tell us the
              amount of consideration to which you are entitled for providing
computing power to
              the pool operator.
17.      In future filings, please revise to disclose the following:
             Whether your transaction fee revenue includes other than a digital
reward and your
              consideration to disclose it separately. Refer to ASC
606-10-50-4.
             The time frame of when the revenue is deposited into your wallet.
             Whether the digital assets are received in whole or fractions.
18.      In future filings, please reconsider the appropriateness of your
statements in the filing that
         there is no definitive guidance under GAAP for the accounting for
bitcoin recognized as
         revenue or held. We observe that the FASB codification is the source
of authoritative
         generally accepted accounting principles and that there is
codification guidance whose
         scope applies to your transactions.
Concentration of Credit Risk, page F-13

19.      In future filings, revise to correct the inconsistencies in your
disclosures that the
         custodian's accounts for your bitcoin are not insured by the FDIC, and
your disclosure that
         the fair market value of bitcoin held in accounts covered by FDIC
limits was $11,147,478
         and $23,603,210 for the periods ended September 30, 2022 and 2021.
2022 Goodwill Impairment Analysis, page F-16

20.      In future filings, please revise to describe the facts and
circumstances leading to each
         individually material goodwill impairment. Refer to ASC
350-20-50-2(a).
Bitcoin, page F-17

21.      Regarding your impairment testing for bitcoin, please tell us the
following information
         and reference for us the authoritative literature you rely upon to
support your accounting:
             Tell us whether or not you evaluate multiple units (or fractional
units) of bitcoin that
             have different carrying amounts for impairment as a group;
             Tell us the market(s) you used to determine the quoted price used
to assess
             impairment;
 Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 6
                Tell us whether these market(s) are your principal market(s),
and if not, explain why
              not, and how the markets are determined;
                Tell us in detail how often you assess impairment and the
timing of the quoted price
              used in your assessment;
                Explain how you consider a qualitative assessment given the
existence of a quoted
              price on apparently active markets.
22.      Please tell us how your classification of bitcoin as current assets is
consistent with the
         definition of current assets in ASC 201-10-20. In your response, at a
minimum address
         each of the following:
             Tell us how you reasonably expect to realize your Bitcoin in cash
through sale or
             otherwise when it appears that you hold significant amounts of
these assets on your
             balance sheet.
             For Bitcoin held at September 30, 2022 and 2021, tell us the
average length of time it
             has been held and how frequently it turns over, explaining how you
calculated this
             turnover.
             Tell us your consideration for carrying a portion of your holdings
that are not
             expected to be sold for cash as long-term.
Note 3. Discontinued Operations, page F-21

23.      We note your disclosure on page F-9 that you still own patented
gasification energy
         technologies and are not currently planning to sell or market these
technologies. In future
         filings, if significant, please revise your disclosures to quantify
and explain how you are
         accounting for these technologies.
        We remind you that the company and its management are responsible for
the accuracy
and adequacy of their disclosures, notwithstanding any review, comments, action
or absence of
action by the staff.

       You may contact Kate Tillan at 202-551-3604 or Bonnie Baynes at
202-551-4924 if you
have questions regarding comments on the financial statements and related
matters. Please
contact Sonia Bednarowski at 202-551-3666 or Christopher Wall at 202-551-4162
with any other
questions.

FirstName LastNameGary A. Vecchiarelli                         Sincerely,
Comapany NameCleanSpark, Inc.
                                                               Division of
Corporation Finance
February 6, 2023 Page 6                                        Office of Crypto
Assets
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![LOGO]

DIVISION OF
CORPORATION FINANCE

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

February 6, 2023

Gary A. Vecchiarelli
Chief Financial Officer
CleanSpark, Inc.
2370 Corporate Circle
Suite 160
Henderson, NV 89074

**Re: CleanSpark, Inc.**
**Form 10-K for the Fiscal Year Ended September 30, 2022**
**File No. 001-39187**

Dear Gary A. Vecchiarelli:

We have reviewed your filing and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to these comments within ten business days by providing the requested information or advise us as soon as possible when you will respond. If you do not believe our comments apply to your facts and circumstances, please tell us why in your response.

After reviewing your response and any amendment you may file in response to these comments, we may have additional comments.

Form 10-K for the Fiscal Year Ended September 30, 2022

General

1. In future filings, please provide disclosure regarding any significant crypto asset market developments material to understanding or assessing your business, financial condition and results of operations or share price. Consider each comment issued in our January 20, 2023 letter relating to your Post-Effective Amendment No. 2 to your Registration Statement on Form S-3 filed on December 15, 2022, and make the relevant disclosures in future filings. For additional guidance, please see the Division of Corporation Finance's Sample Letter to Companies Regarding Recent Developments in Crypto Asset Markets issued by the Staff in December 2022.
2. In future filings, please include a comprehensive breakeven analysis for your bitcoin mining operations or any other crypto assets that you earn or mine that compares the cost to earn or mine one crypto asset with the value of the crypto asset.

Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 2

Lines of Business, page 5

3. In future filings, please disclose the percentage of your energy usage that uses clean and renewable energy resources as well as the locations in which you use these resources. In addition, please identify the types of “clean and renewable” energy sources you use and explain how you plan to increase your usage.

4. In future filings, please disclose whether your data centers and campuses support only your miners or whether you host miners for other companies.

5. In future filings, to the extent that you plan to expand your mining business to mine crypto assets other than bitcoin, please identify the crypto assets you plan to mine, if known, and please disclose the procedures and policies related to selecting the crypto assets. In addition, disclose the stage of any material strategic acquisitions and an estimated time line, as well as the estimated costs, and the sources of capital for any such planned acquisitions.

6. In future filings, please disclose here whether you intend to hold or monetize the mined bitcoin, and please disclose your policies related to the uses for the mined bitcoin. Disclose here how you monetize your bitcoin, including any exchanges you use, whether you have any agreements with any exchanges, and whether you store any of your crypto asset holdings on any exchanges’ platforms. In this regard, we note your disclosure on page 21 that you exchange your bitcoins directly for U.S. dollars on Coinbase. In addition, please disclose whether you hold any other types of crypto assets. If so, please identify the types and amount of such crypto assets, and discuss the purpose of holding the other types of crypto assets.

Working Capital Items, page 6

7. In future filings, please disclose the range, mean and average age of your miners, the average downtime attributed to scheduled maintenance and non-scheduled maintenance as well as the average, mean and range of the energy efficiency of your miners.

Distribution, Marketing and Strategic Relationships, page 7

8. We note your disclosure on page 7 that Coinmint has agreed to house and power the mining equipment in its facilities and that it has agreed to use commercially reasonable efforts to mine bitcoin on your behalf. In future filings, please disclose whether Coinmint contributes your computing power to a mining pool that it or another third-party operates, and please identify the mining pool operator or operators. In this regard, we note your disclosure regarding Foundry Digital on page 18. Also, please discuss how mining pools operate more generally, and disclose whether the mining pools you use provide services only for bitcoin mining or if they are multi-crypto asset mining pools. Also disclose the fees associated with participating in the mining pools and whether the payouts you receive from Coinmint, Foundry Digital and any other mining pools are limited to only bitcoin. In addition, please disclose the processing power you contribute to each mining pool you

Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 3

currently use.

Cybersecurity, page 10

9. In future filings, please disclose your custody procedures and arrangements by identifying all third-party custodians and the material terms of the agreements, including:
- what portion of your bitcoin or other crypto assets, if any, are held in hot wallets and cold wallets;
- the geographic location where crypto assets are held in cold wallets;
- whether any persons (e.g., auditors, etc.) are responsible for verifying the existence for the crypto assets held by the third party custodian(s);
- a description of your custodian's insurance and the degree to which those policies provide coverage for the loss of your crypto assets; and
- whether any insurance providers have inspection rights associated with the crypto assets held in storage.

10. In future filings, please describe the terms and provisions of any insurance policies covering your crypto assets in the event of loss or fraud and any insurance policies covering your miners, including the amount of coverage, term and termination provisions, renewal options and limitations on coverage. To the extent that you do not have insurance coverage for your crypto assets or miners, please add risk factor disclosure.

The value of bitcoin has historically been subject to wide swings, page 17

11. In future filings, please expand this risk factor to include quantitative information regarding the wide swings of bitcoin prices.

If the SEC or another regulatory body consider bitcoin to be a security, page 28

12. In future filings, please confirm whether you mine crypto assets other than bitcoin or have plans to mine crypto assets other than bitcoin. If so, please identify the relevant assets and expand this risk factor to briefly discuss the process and framework you have in place to determine whether any crypto assets that you may mine, hold or acquire are securities as defined under Section 2(a)(1) of the Securities Act. In this regard we note your references on page 28 and elsewhere to "bitcoin or other cryptocurrencies we mine or otherwise acquire or hold for our own account."

Management's Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations for the Year Ended September 30, 2022 and 2021, page 37

13. In future filings, please revise to include a discussion regarding your daily average GPUs and their average hashrate and difficulty for each of the periods presented. Refer to Item 303(a) of Regulation S-K and SEC Release No. 33-10751.

Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 4

Non-GAAP Measure, page 39

14. In future filings, please revise your non-GAAP disclosure for the following:
- Revise to clarify how the following adjustments for (a) other impairment loss (related to bitcoin), (b) realized gain on sale of bitcoin, and (c) legal fees meet the definitions in Item 10(e)(1)(ii)(B) of Regulation S-K, and Questions 100.01 and 102.03 of the Compliance and Disclosure Interpretations on Non-GAAP Financial Measures.
- We note your disclosure on page 39 that you have excluded non-cash items that you believe are not reflective of your general business performance and for which the accounting requires management judgment and the resulting expenses could vary significantly in comparison to other companies. In future filings, please revise to disclose in sufficient detail the nature and amounts for all material non-cash items that are excluded. Refer to Question 100.04 of the C&DI on Non-GAAP financial measures.

Note 2. Summary of Significant Accounting Policies

Revenue Recognition, page F-11

15. Please tell us the following regarding your revenue recognition:
- Tell us the amount of revenue earned by each of your owned and operated facilities and your co-location and hosting revenues, for each of the periods presented.
- Please tell us the amounts of your energy costs, by provider, and provide us with a summary of the significant terms of your utility power purchase agreements and your renewable energy credits, for the periods presented, if significant.
16. Please provide us your analysis supporting your revenue recognition policy for your mining pool participation activities. In your response, where appropriate, reference for us the authoritative literature you relied upon to support your accounting:

Step 1 of ASC 606

- Provide us a representative sample contract and cross reference your analysis to the specific provisions of that contract.
- Tell us whether there are any penalties for contract termination by either party and explain when a contract begins and describe its term for accounting purposes. As it appears that you may cancel at any time, tell us what happens if you cancel midterm. Also explain whether you can withdraw computing power midterm and reinstitute it later that same day.

Step 2 of ASC 606

- Substantiate how the provision of computing power to the mining pool is your sole performance obligation.

Step 3 of ASC 606

- Identify the consideration specified in the contract, how the amount of consideration is determined and explain how you apply the variable consideration constraint in ASC 606-10-32-11 through 32-13.
- Tell us the payment terms for cryptocurrencies earned from the mining pool operator and substantiate how valuing these assets upon receipt is not materially different than

Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 5

the fair value at contract inception.

- Tell us the relevance of the fair value of cryptocurrencies on the date received being not materially different than the time you earned the award from the mining pool operator.
- Tell us why it is appropriate to deduct transaction fees to the mining pool operator from revenue. Clarify whether the single amount (i.e., the net fees received) represents the transaction price paid to you in satisfaction of your performance obligation to the pool operator and if the amounts retained by the pool operator relate to the activities it must undertake to fulfill its contract with you.
- Provide your analysis of the guidance for determining the transaction price beginning at ASC 606-10-32-2; that is, based on your contract with the pool operator, tell us the amount of consideration to which you are entitled for providing computing power to the pool operator.

17. In future filings, please revise to disclose the following:
- Whether your transaction fee revenue includes other than a digital reward and your consideration to disclose it separately. Refer to ASC 606-10-50-4.
- The time frame of when the revenue is deposited into your wallet.
- Whether the digital assets are received in whole or fractions.

18. In future filings, please reconsider the appropriateness of your statements in the filing that there is no definitive guidance under GAAP for the accounting for bitcoin recognized as revenue or held. We observe that the FASB codification is the source of authoritative generally accepted accounting principles and that there is codification guidance whose scope applies to your transactions.

Concentration of Credit Risk, page F-13

19. In future filings, revise to correct the inconsistencies in your disclosures that the custodian's accounts for your bitcoin are *not* insured by the FDIC, and your disclosure that the fair market value of bitcoin held in accounts *covered by FDIC limits* was $11,147,478 and $23,603,210 for the periods ended September 30, 2022 and 2021.

2022 Goodwill Impairment Analysis, page F-16

20. In future filings, please revise to describe the facts and circumstances leading to each individually material goodwill impairment. Refer to ASC 350-20-50-2(a).

Bitcoin, page F-17

21. Regarding your impairment testing for bitcoin, please tell us the following information and reference for us the authoritative literature you rely upon to support your accounting:
- Tell us whether or not you evaluate multiple units (or fractional units) of bitcoin that have different carrying amounts for impairment as a group;
- Tell us the market(s) you used to determine the quoted price used to assess impairment;

Gary A. Vecchiarelli
CleanSpark, Inc.
February 6, 2023
Page 6

- Tell us whether these market(s) are your principal market(s), and if not, explain why not, and how the markets are determined;
- Tell us in detail how often you assess impairment and the timing of the quoted price used in your assessment;
- Explain how you consider a qualitative assessment given the existence of a quoted price on apparently active markets.

22. Please tell us how your classification of bitcoin as current assets is consistent with the definition of current assets in ASC 201-10-20. In your response, at a minimum address each of the following:
- Tell us how you reasonably expect to realize your Bitcoin in cash through sale or otherwise when it appears that you hold significant amounts of these assets on your balance sheet.
- For Bitcoin held at September 30, 2022 and 2021, tell us the average length of time it has been held and how frequently it turns over, explaining how you calculated this turnover.
- Tell us your consideration for carrying a portion of your holdings that are not expected to be sold for cash as long-term.

Note 3. Discontinued Operations, page F-21

23. We note your disclosure on page F-9 that you still own patented gasification energy technologies and are not currently planning to sell or market these technologies. In future filings, if significant, please revise your disclosures to quantify and explain how you are accounting for these technologies.

We remind you that the company and its management are responsible for the accuracy and adequacy of their disclosures, notwithstanding any review, comments, action or absence of action by the staff.

You may contact Kate Tillan at 202-551-3604 or Bonnie Baynes at 202-551-4924 if you have questions regarding comments on the financial statements and related matters. Please contact Sonia Bednarowski at 202-551-3666 or Christopher Wall at 202-551-4162 with any other questions.

Sincerely,

Division of Corporation Finance
Office of Crypto Assets