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United States securities and exchange commission logo





                             December 18, 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, 2023
                                                            Filed December 1,
2023
                                                            File No. 001-39187

       Dear Gary A. Vecchiarelli:

              We have reviewed your September 15, 2023 response to our comment
letter and have the
       following comments.

              Please respond to this letter 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 a
       comment applies to your facts and circumstances, please tell us why in
your response.

               After reviewing your response to this letter, we may have
additional comments. Unless
       we note otherwise, any references to prior comments are to comments in
our August 17, 2023
       letter.

       Form 10-K for the Fiscal Year Ended September 30, 2023

       General

   1.                                                   Refer to your response
to comment 5 of our March 31, 2023 comment letter. In future
                                                        filings, please
disclose whether the mining pools provide services only for bitcoin mining
                                                        or if they are
multi-crypto asset mining pools. Please also disclose the fees associated
                                                        with participating in
the mining pool.
   2.                                                   Refer to your response
to comment 6 of our February 6, 2023 comment letter. In future
                                                        filings, 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.
 Gary A. Vecchiarelli
FirstName
CleanSpark,LastNameGary   A. Vecchiarelli
            Inc.
Comapany18,
December   NameCleanSpark,
              2023           Inc.
December
Page 2    18, 2023 Page 2
FirstName LastName
3.       In future filings, in your breakeven analysis comparing the cost to
earn or mine one
         bitcoin with the value of one bitcoin, please include equipment costs
in a separate row to
         the table or tell us why this information is not relevant.
Financial Statements
Consolidated Statements of Cash Flows, page F-11

4.       We acknowledge your response to comment 8. Please note that we are
continuing to
         review your response.
Note 2. Summary of Significant Accounting Policies
Revenue Recognition, page F-14

5.       In response to comment 5, you refer to Exhibit A and the updated
Foundry USA Pool
         Terms and Conditions as of August 28, 2023. We note that this exhibit
was not included
         with your response. Please file the exhibit on EDGAR as
correspondence.
6.       We acknowledge your responses to comments 5 and 6. Please respond to
the following
         and revise your disclosure in future filings to specifically address
the following
         concerning your mining revenue recognition under ASC 606:
             In your response you told us that each 24-hour period is a
contract day, which begins
             at 00:00:00 UTC and ends at 23:59:59 UTC. You also disclose that
your contracts
             are terminable at any time by either party and you told us that
there are no penalties
             for either party in case of termination. Tell us your
consideration for the guidance in
             Examples 1 and 2 of Question 7 and of Question 8 to the FASB
Revenue Recognition
             Implementation Q&As and whether the mining pool agreement is
continuously
             renewed and the duration of your contracts is less than 24 hours.
             Disclose, similar to your response, that the contracts are
terminable at any time by
             either party without compensation or penalty to the other party
for such termination.
             Assuming you conclude that your contracts are continually renewed,
tell us whether
             the rate of payment remains the same upon renewal and whether your
customer   s
             option to renew represents a material right that results in a
separate performance
             obligation as contemplated in ASC 606-10-55-42.
             You told us that you are precisely aware of the computing power
(measured in
             hashrate) contributed to the pool operator at any time during the
contract period and
             at any point in time during the contract period you could
calculate the daily pay-per-
             share earnings (step 1 of the Foundry USA Pool's Payout). As such,
tell us why the
             block reward portion of the consideration cannot be reasonably
estimated and is fully
             constrained. In this regard, it appears for FPPS contracts that
the only variable at
             contract inception is the number of hashes you will perform, which
is wholly in your
             control and would appear to be reasonably estimable.
             You told us that your performance obligation is to provide
computing power services
             (in the form of hashrate). Tell us your consideration of
disclosing your one
             performance obligation as a service to perform hash computations
for the mining
 Gary A. Vecchiarelli
FirstName
CleanSpark,LastNameGary   A. Vecchiarelli
            Inc.
Comapany18,
December   NameCleanSpark,
              2023           Inc.
December
Page 3    18, 2023 Page 3
FirstName LastName
              pool operator, or something similar, to align with the promise
under your agreement.
                Disclose, similar to your response, that your agreement
utilizes the Full Pay Per Share
              (FPPS) payout method and summarize the nature of each component
of your
              consideration (i.e., network block subsidies, network transaction
fees, and pool
              operating fees). It should be clear from the disclosure whether
the amounts are
              calculated based on expected or actual amounts. For example, we
note from the
              agreement that network block subsidies are based on the total
amount of block
              subsidies that are expected to be generated on the bitcoin
network as a whole during
              the 24-hour period beginning at midnight UTC daily (i.e., the
measurement period),
              regardless of whether the mining pool operator successfully
records a block to the
              blockchain, while network transaction fees are based on the total
amount of
              transaction fees and block rewards that are actually generated on
the blockchain
              network as a whole during the measurement period.
                Tell us your consideration of clarifying in your disclosure, if
true, that for each
              contract, you measure the noncash consideration using the end of
the day bitcoin spot
              price on the date of contract inception and recognize the noncash
consideration on the
              same day that control of the contracted service transfers to the
mining pool operator
              (i.e., the customer), which is the same day as contract
inception.
Bitcoin, page F-17

7.       We acknowledge your response to comment 10 and your disclosure on page
F-17. As
         noted in your response, the definition of a current asset in the FASB
Master Glossary
         refers to a reasonable expectation of realization. Your response and
disclosure refer to
         your intent. Please revise your disclosure in future filings to state,
if true, that your bitcoin
         holdings are reasonably expected to be realized in cash or sold or
consumed during the
         normal operation cycle of your business.
8.       We acknowledge your response to comment 11. You told us that you
perform the
         impairment analysis of bitcoin at the end of each reporting period
through a "look-back"
         based on the bitcoin held at each reporting period end to determine
any impairment based
         on the lowest intraday price during the reporting period. It appears
that you adopted this
         policy after December 31, 2022. Prior to January 1, 2023, you based
your quarterly
         impairment analysis on the lowest daily closing price. Please address
the following:
             We note that ASC 350-30-35-19 states that if the carrying amount
exceeds fair
             value then the entity shall recognize an impairment loss equal to
that excess. Also,
             per ASC 350-30-35-18, the test is annually and more frequently if
events or changes
             in circumstances indicate that it is more likely than not that the
asset is impaired. Tell
             us why you believe that anytime the market price is below carrying
value is not an
             event or circumstance that indicates it is more likely than not
that the asset is
             impaired.
             Further, ASC 350-30-35-18B requires assessment of all relevant
events
             and circumstances that could affect the significant inputs to fair
value. We note that
             a market price would be a significant input and a market price
below carrying
 Gary A. Vecchiarelli
CleanSpark, Inc.
December 18, 2023
Page 4
              value would indicate more likely than not that an impairment
exists. Per ASC 350-
              50-35-20, a subsequent reversal of a previously recognized
impairment loss is
              prohibited. Tell us how you considered whether your policy of
only considering
              impairment on a quarterly basis is consistent with this guidance
since you would be
              ignoring any impairments that occur during the quarter.
                In your application of ASC 350-30-35-18B, tell us at what point
impairment occurs,
              if not whenever the fair market value is below the carrying
amount.
                Tell us how timing only at quarter end is relevant to the
analysis of determining
              whether or not impairment exists.
                You told us that you account for your bitcoin as a single unit
of accounting but you
              also disclose that you use the FIFO method to account for gains
and losses on sales
              and exchanges. Explain to us how you determined the initial
carrying value of your
              bitcoin (or fraction thereof), the steps you took when performing
your quarter end
              impairment analysis as of June 30, 2023, how you calculated the
total amount of
              the impairment charge of $1,017,000, how you determined the
subsequent carrying
              value of each bitcoin (or fraction thereof), and how you then
determine gains and
              losses on sales and exchanges of bitcoin.
                In your response, you told us that in your review of the five
indicators in ASC 350-
              30-35-24, none of them apply to your bitcoin. Explain to us
further how you
              considered ASC 350-30-35-24 (b) and (c) and determined that these
do not apply
              since we note that you do sell your bitcoin separately.
9.       With respect to the materiality analysis you provided in your response
to comment 11 and
         your response to comment 12 that address your impairment calculation
and your use of
         NASDAQ.com values, please address the following:
             Tell us the nature and amount of each adjustment included in the
analysis. Explain
             how you determined the adjusted amounts.
             If applicable, tell us the dates when you made changes to your
accounting policies.
             Revise future filings to include adjustments for income taxes, if
any, as a result of the
             adjustments.
             Tell us how you determined that the adjustments, both individually
and in the
             aggregate, were not material. Refer to SAB Topic 1.M.
Property and Equipment, page F-20

10.    We acknowledge your response to comment 9. Your response provided
information for
       only the three months ended March 31 and June 30, 2023. Please update to
tell us your
       response specifically addressing the quarter ended December 31, 2022 as
we note that the
       price of bitcoin declined during that period to a low of approximately
$15,460. Further,
       tell us whether the adverse changes in business climate during the
quarter ended
       December
FirstName          31, 2022,A.
            LastNameGary     including decreases in the market price of miners,
indicated that an
                               Vecchiarelli
       impairment triggering event had occurred. Refer to ASC 360-10-35-21(a).
Tell us the
Comapany NameCleanSpark, Inc.
       average revenue and cost of revenue for each bitcoin mined during the
quarter ended
December    18, 2023
       December    31,Page 4
                       2022.
FirstName LastName
 Gary A. Vecchiarelli
FirstName
CleanSpark,LastNameGary   A. Vecchiarelli
            Inc.
Comapany18,
December   NameCleanSpark,
              2023           Inc.
December
Page 5    18, 2023 Page 5
FirstName LastName
       Please 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 Sandra Hunter Berkheimer at
202-551-3758 with
any other questions.



                                                       Sincerely,

                                                       Division of Corporation
Finance
                                                       Office of Crypto Assets
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