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Cleanspark (CLSK)
NASDAQ:CLSK

Cleanspark (CLSK) AI Stock Analysis

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Cleanspark

(NASDAQ:CLSK)

Rating:67Neutral
Price Target:
$10.50
▲(9.15%Upside)
Cleanspark's strong revenue growth and robust balance sheet are major strengths, but profitability and cash flow challenges weigh down the overall score. Positive technical indicators and strategic growth initiatives from the earnings call contribute favorably, yet valuation remains a concern due to negative earnings.
Positive Factors
Financial Performance
Revenues increased by 82% driven by higher average BTC prices and a significant increase in BTC production.
Operational Efficiency
CleanSpark achieved a 42% increase in deployed hash rate, a 20% improvement in fleet efficiency, and a 6% reduction in direct production costs per coin.
Valuation
The company is trading at the largest discount in its peer group on an enterprise value to EBITDA basis, suggesting potential for valuation improvement.
Negative Factors
Cost Management
Cleanspark reported a slight adjusted EBITDA miss due to higher costs of goods sold as power costs were elevated across the industry.
Financial Results
F2Q results themselves were relatively underwhelming, which could result in a muted to slightly negative reaction in shares.
Market Position
Shares are off over 50% from their 52-week high and trade at the low-end of the peer group on both EV/Sales and EV/EBITDA.

Cleanspark (CLSK) vs. SPDR S&P 500 ETF (SPY)

Cleanspark Business Overview & Revenue Model

Company DescriptionCleanSpark, Inc. (CLSK) is a sustainable Bitcoin mining and energy technology company. The company operates in the cryptocurrency and energy sectors, focusing on providing advanced energy solutions and efficient Bitcoin mining operations. CleanSpark's core products and services include Bitcoin mining and energy optimization technologies, which aim to enhance energy efficiency and sustainability in power-intensive industries.
How the Company Makes MoneyCleanSpark makes money primarily through its Bitcoin mining operations. The company generates revenue by efficiently mining Bitcoin, leveraging its energy optimization technologies to reduce operational costs and improve profitability. Additionally, CleanSpark offers energy solutions that help businesses improve their energy efficiency and sustainability, providing another stream of revenue. The company's strategic partnerships with energy providers and other stakeholders in the cryptocurrency and energy sectors further contribute to its earnings by enabling access to cost-effective energy sources and advanced mining technologies.

Cleanspark Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q2-2025)
|
% Change Since: 10.83%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
CleanSpark demonstrated strong revenue growth and improved operational efficiency despite challenges like rising costs and a decline in Bitcoin spot price. The company maintains a strong liquidity position and is well-positioned for future growth, emphasizing its infrastructure-first approach and non-dilutive funding strategies. While the net loss and increased costs pose challenges, the overall outlook remains positive due to strategic growth initiatives and market adaptability.
Q2-2025 Updates
Positive Updates
Revenue and Gross Margin Growth
Revenue increased 12% quarter over quarter and 62.5% year over year, reaching $181.7 million. Gross profit was up almost 5% sequentially and more than 24% year over year, with a gross margin of 53%.
Bitcoin Production and Treasury
Bitcoin production increased slightly compared to the prior quarter. Average revenue per Bitcoin was up 10.5% quarter over quarter and nearly 69% year over year. The Bitcoin treasury grew to over 12,100 coins by April 30th.
Liquidity and Non-Dilutive Funding
CleanSpark ended the quarter with $1.1 billion in liquidity and expanded its line of credit with Coinbase to $200 million, supporting growth without equity dilution.
Operational Efficiency and Market Share
Fleet efficiency improved from 18 joules per terahash in December to less than 17 joules per terahash by April, mitigating higher energy prices and rising network difficulty. CleanSpark holds about 5% market share in Bitcoin mining.
Strategic Growth and Infrastructure
CleanSpark is on track to reach 50 exahash by mid-2025 and has paid for infrastructure supporting almost 200 megawatts beyond that goal. They have already secured infrastructure to support growth beyond 60 exahash.
Negative Updates
Net Loss and Bitcoin Spot Price Decline
Reported a net loss of $138.8 million due to a quarter-end decline in Bitcoin spot price, despite strong operational performance.
Rising Costs and Mining Difficulty
Marginal cost per coin rose to $42,600, a 26% increase over the first quarter due to increased mining difficulty and higher power prices.
Company Guidance
During CleanSpark's Fiscal Year 2025 Second Quarter Earnings Conference Call, the company reported significant financial growth and operational resilience. Revenue increased by 12% from the previous quarter and 62.5% year over year, reaching $181.7 million. Gross profit rose to nearly $100 million, with a gross margin of 53%. Although a net loss was reported due to Bitcoin price adjustments, CleanSpark's Bitcoin production slightly increased, resulting in a Bitcoin treasury exceeding 12,100 coins as of April 30th. The company ended the quarter with over $1 billion in liquidity, maintaining a disciplined approach to capital management without equity dilution. CleanSpark achieved a fleet efficiency improvement from 18 joules per terahash to less than 17, while power under contract approached 1 gigawatt. The company plans to reach 50 exahash by mid-2025, potentially expanding further to 65 exahash, supported by strategic infrastructure investments and a focus on Bitcoin as a core long-term asset.

Cleanspark Financial Statement Overview

Summary
Cleanspark shows strong revenue growth and a robust balance sheet with minimal leverage. However, profitability and cash flow management are weak, with negative free cash flow and inefficiencies in converting revenue into cash.
Income Statement
67
Positive
Cleanspark has shown impressive revenue growth, increasing from $10.03M in 2020 to $467.49M in TTM 2024, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative EBIT margins and fluctuating net income. The gross profit margin has improved to 36.27% in TTM 2024, showing better cost management, but net profit margins remain volatile due to high operating expenses and interest costs.
Balance Sheet
75
Positive
The balance sheet is robust with a high equity ratio of 72.76% in TTM 2024, reflecting strong shareholder equity compared to total assets. The debt-to-equity ratio is low at 0.0036, indicating minimal leverage and reduced financial risk. The company's ability to maintain substantial cash reserves enhances its financial stability and capacity to fund operations and growth.
Cash Flow
50
Neutral
Cleanspark's cash flow situation is concerning with negative free cash flow of -$1.04B in TTM 2024, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting revenue into cash. Despite significant financing activities, the company needs to improve cash flow management to support its growth sustainably.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
537.40M378.97M168.41M131.53M39.29M10.03M
Gross Profit
216.54M213.45M29.11M49.37M12.84M2.12M
EBIT
-242.72M-149.04M-131.04M-37.86M-11.90M-15.14M
EBITDA
48.02M14.63M-7.60M10.15M1.25M-9.75M
Net Income Common Stockholders
-190.42M-145.78M-138.15M-57.66M-21.81M-23.35M
Balance SheetCash, Cash Equivalents and Short-Term Investments
96.98M553.80M86.18M32.22M42.40M4.09M
Total Assets
2.66B1.96B761.58M452.62M317.47M22.34M
Total Debt
5.42M66.95M16.74M22.22M1.54M572.46K
Net Debt
-91.56M-54.27M-12.47M1.76M-15.68M-2.55M
Total Liabilities
766.51M201.82M84.35M48.61M11.76M5.91M
Stockholders Equity
1.89B1.76B677.23M404.01M305.72M16.43M
Cash FlowFree Cash Flow
-1.09B-1.04B-318.12M-117.23M-264.01M-6.76M
Operating Cash Flow
-270.17M-233.66M-30.39M73.46M-35.43M-6.64M
Investing Cash Flow
-944.78M-920.40M-331.93M-210.98M-229.16M-2.38M
Financing Cash Flow
1.17B1.25B371.07M139.95M268.06M4.31M

Cleanspark Technical Analysis

Technical Analysis Sentiment
Positive
Last Price9.62
Price Trends
50DMA
8.80
Positive
100DMA
8.92
Positive
200DMA
10.10
Negative
Market Momentum
MACD
0.21
Positive
RSI
53.04
Neutral
STOCH
53.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLSK, the sentiment is Positive. The current price of 9.62 is above the 20-day moving average (MA) of 9.51, above the 50-day MA of 8.80, and below the 200-day MA of 10.10, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 53.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLSK.

Cleanspark Risk Analysis

Cleanspark disclosed 71 risk factors in its most recent earnings report. Cleanspark reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Cleanspark Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
OLOLO
74
Outperform
$1.42B484.000.49%23.31%
67
Neutral
$2.61B54.04-11.36%89.47%-737.43%
DBDBD
67
Neutral
$1.90B0.78-1.02%-2.66%-100.56%
64
Neutral
$12.87B9.767.85%78.04%12.07%-7.94%
62
Neutral
$3.47B24.36-14.71%59.99%-283.24%
59
Neutral
$2.80B-0.82%3.08%-26.04%85.84%
49
Neutral
$2.49B-32.09%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLSK
Cleanspark
9.62
-9.62
-50.00%
RIOT
Riot Platforms
10.17
-0.74
-6.78%
ALIT
Alight
5.27
-1.86
-26.09%
OLO
Olo
8.62
4.17
93.71%
BTDR
Bitdeer Technologies
13.56
4.18
44.56%
DBD
Diebold Nixdorf Inc
51.40
10.50
25.67%

Cleanspark Corporate Events

Executive/Board Changes
Cleanspark Increases CTO Compensation Package Significantly
Positive
Apr 25, 2025

On April 22, 2025, CleanSpark, Inc.’s Compensation Committee approved a significant increase in the compensation package for Taylor Monnig, the Chief Technology Officer. The adjustments include an increase in his annual base salary from $410,000 to $550,000 and a rise in his bonus target from a maximum of 100% to 150% of his base salary. Additionally, the equity grants under the 2025 Long Term Incentive Plan for Mr. Monnig were increased, reflecting a strong commitment to retaining key talent and potentially enhancing the company’s operational capabilities.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.