CleanSpark, Inc. (CLSK) saw its shares tumble 5.65% in after-hours trading on Thursday following the release of its second-quarter fiscal 2025 financial results. The bitcoin mining company reported a substantial net loss despite a significant increase in revenue, disappointing investors and triggering a sell-off.

For the quarter ended March 31, 2025, CleanSpark reported a net loss of $138.792 million, a stark contrast to the net income of $126.7 million in the same period last year. This disappointing bottom line came despite a 62.5% year-over-year increase in revenue, which reached $181.7 million. The company's bitcoin mining operations generated $181.712 million in revenue, with 1,957 bitcoins produced at an average revenue of $92,811 per coin.

While CleanSpark's CEO Zach Bradford emphasized the company's commitment to maintaining its position as a pure-play, public bitcoin miner and reaching its 50 EH/s target by June, investors seemed more concerned with the financial losses. The negative adjusted EBITDA of $57.8 million, compared to a positive $181.8 million in the previous year, further underscored the challenges faced by the company. CFO Gary Vecchiarelli highlighted CleanSpark's strategic expansion efforts without relying on dilutive capital, but the market reaction suggests that investors are wary of the company's current financial performance amidst its growth strategy.