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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Cleanspark, Inc. · 10-Q · Q3 FY2026 · Period ended Jun 30, 2026
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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 June 30, 2026, the Company held approximately 12,205 bitcoin on hand and the equivalent of 1,719 bitcoins receivable as a result of collateral held by third parties. As of June 30, 2026, the fair value of a single bitcoin was approximately $58,500, causing the fair value of the Company’s bitcoin holdings and receivable from collateral on that date to approximate $815 and $101 million, respectively. A 10% increase or decrease in the fair value of bitcoin as of June 30, 2026, would have increased or decreased the total cash value that could be realized if the Company were to sell its bitcoin and related receivables by approximately $92 million in total.
Market Price Risk of Bitcoin-Linked Derivative Instruments.
As of June 30, 2026, we held bitcoin-linked derivative liabilities with a combined fair value of approximately $3,040 and bitcoin-linked derivative assets with a combined fair value of $896. A 10% change in the fair value of these derivative liabilities, holding all other variables constant, would result in an approximate $304 increase or decrease in the total fair value of the derivatives and a corresponding offset to net loss. Likewise, a 10% change in the fair value of these derivative assets, holding all other variables constant, would result in an approximate $90 increase or decrease in the fair value of the derivative assets and a corresponding offset to net loss.
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