Cleanspark (CLSK) AI Stock Analysis

• Market Cap: $2.61B
• Dividend Yield: N/A
• Average Volume (3M): 26.30M
• Price to Earnings (P/E): 54.0
• Beta (1Y): 1.63
• Revenue Growth: 89.47%
• EPS Growth: -737.43%
• Country: US
• Employees: 256
• Sector: Financial
• Sector Strength: 74
• Industry: Software - Application
• EPS (TTM): -0.49
• Shares Outstanding: 280,943,850
• 10 Day Avg. Volume: 24,622,722
• 30 Day Avg. Volume: 26,304,832
• PEG Ratio: 0.08
• Price to Book (P/B): 5.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.72
• Enterprise Value/Market Cap: 0.04
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.47
• Enterprise Value/Ebitda: 0.28
• 1Y Price Target: $19.43
• Price Target Upside: 101.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• 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 Business Overview & Revenue Model

Company Description

CleanSpark, 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 Money

CleanSpark 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 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

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

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

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
537.40M	378.97M	168.41M	131.53M	39.29M	10.03M
	Gross Profit
216.54M	213.45M	29.11M	49.37M	12.84M	2.12M
	EBIT
-242.72M	-149.04M	-131.04M	-37.86M	-11.90M	-15.14M
	EBITDA
48.02M	14.63M	-7.60M	10.15M	1.25M	-9.75M
	Net Income Common Stockholders
-190.42M	-145.78M	-138.15M	-57.66M	-21.81M	-23.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.98M	553.80M	86.18M	32.22M	42.40M	4.09M
	Total Assets
2.66B	1.96B	761.58M	452.62M	317.47M	22.34M
	Total Debt
5.42M	66.95M	16.74M	22.22M	1.54M	572.46K
	Net Debt
-91.56M	-54.27M	-12.47M	1.76M	-15.68M	-2.55M
	Total Liabilities
766.51M	201.82M	84.35M	48.61M	11.76M	5.91M
	Stockholders Equity
1.89B	1.76B	677.23M	404.01M	305.72M	16.43M
Cash Flow		Free Cash Flow
-1.09B	-1.04B	-318.12M	-117.23M	-264.01M	-6.76M
	Operating Cash Flow
-270.17M	-233.66M	-30.39M	73.46M	-35.43M	-6.64M
	Investing Cash Flow
-944.78M	-920.40M	-331.93M	-210.98M	-229.16M	-2.38M
	Financing Cash Flow
1.17B	1.25B	371.07M	139.95M	268.06M	4.31M

Cleanspark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OLO	74 Outperform	$1.42B	484.00	0.49%	―	23.31%	―
CLSK	67 Neutral	$2.61B	54.04	-11.36%	―	89.47%	-737.43%
DBD	67 Neutral	$1.90B	0.78	-1.02%	―	-2.66%	-100.56%
Sector *	64 Neutral	$12.87B	9.76	7.85%	78.04%	12.07%	-7.94%
RIOT	62 Neutral	$3.47B	24.36	-14.71%	―	59.99%	-283.24%
ALIT	59 Neutral	$2.80B	―	-0.82%	3.08%	-26.04%	85.84%
BTDR	49 Neutral	$2.49B	―	-32.09%	―	―	―

Cleanspark Corporate Events

Cleanspark Increases CTO Compensation Package Significantly

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.