Cleanspark (CLSK) AI Stock Analysis

• Market Cap: $3.42B
• Dividend Yield: N/A
• Average Volume (3M): 28.23M
• Price to Earnings (P/E): 54.0
• Beta (1Y): 2.00
• Revenue Growth: 89.47%
• EPS Growth: -737.43%
• Country: US
• Employees: 256
• Sector: Financial
• Sector Strength: 75
• Industry: Software - Application
• EPS (TTM): -0.49
• Shares Outstanding: 280,943,850
• 10 Day Avg. Volume: 27,671,188
• 30 Day Avg. Volume: 28,228,251
• PEG Ratio: 0.03
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.85
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 14.72
• Enterprise Value/Ebitda: 9.61
• 1Y Price Target: $19.00
• Price Target Upside: 46.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 58 Neutral
• Price Target: $13.00 ▲(0.15%Upside)

Cleanspark's overall score reflects robust revenue growth and operational improvements, as emphasized in the recent earnings call. However, persistent profitability and cash flow challenges, alongside valuation concerns, weigh down the score. The technical outlook is positive but tempered by overbought conditions.

Positive Factors

Competitive Advantage

CleanSpark is one of the largest players in the BTC mining space with a focus on scaling hash rate, offering a competitive advantage.

Operational Growth

CleanSpark builds upon strong track record of achieving guidance, reaching 50 EH/s in operating capacity.

Valuation

CLSK trades at a 35% valuation discount to its closest comps on market cap to deployed hash rate.

Negative Factors

Financial Performance

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 Risks

Risks to achieving the price target include BTC price volatility and potential shareholder dilution.

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 but faces significant profitability challenges with ongoing net losses and negative EBIT margins. The balance sheet is stable with minimal debt, yet cash flow difficulties persist due to substantial negative free cash flow and high capital expenditures.

Income Statement

Cleanspark's revenue has shown a strong growth trajectory, increasing significantly year-over-year. However, the company is facing substantial profitability challenges, with consistent net losses and negative EBIT margins. The gross profit margin remains moderate, but the net profit margin is deeply negative, indicating ongoing operational inefficiencies.

Balance Sheet

The company's balance sheet is relatively stable with a strong equity base, as evidenced by a healthy equity ratio. However, the debt-to-equity ratio is minimal, suggesting low leverage, which is a positive indicator of financial stability. Despite this, the company has been unable to convert this stability into profitability, which remains a concern.

Cash Flow

Cleanspark is experiencing significant cash flow difficulties, with substantial negative free cash flow and decreasing operating cash flow. The high capital expenditures relative to operating cash flow could be straining financial flexibility. The ratio of operating cash flow to net income is unfavorable, highlighting challenges in converting income into cash.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	378.97M	168.41M	131.53M	39.29M	10.03M
Gross Profit	213.45M	29.11M	49.37M	12.84M	2.12M
EBITDA	14.63M	-7.60M	10.15M	1.25M	-9.75M
Net Income	-145.78M	-138.15M	-57.66M	-21.81M	-23.35M
Balance Sheet
Total Assets	1.96B	761.58M	452.62M	317.47M	22.34M
Cash, Cash Equivalents and Short-Term Investments	553.80M	86.18M	32.22M	38.93M	4.09M
Total Debt	66.95M	16.74M	22.22M	1.54M	572.46K
Total Liabilities	201.82M	84.35M	48.61M	11.76M	5.91M
Stockholders Equity	1.76B	677.23M	404.01M	305.72M	16.43M
Cash Flow
Free Cash Flow	-1.04B	-318.12M	-117.23M	-252.56M	-6.76M
Operating Cash Flow	-233.66M	-17.25M	73.46M	-23.99M	-6.64M
Investing Cash Flow	-920.40M	-331.93M	-210.98M	-229.16M	-2.38M
Financing Cash Flow	1.25B	357.93M	139.95M	268.06M	4.31M

Cleanspark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 12.98 is above the 20-day moving average (MA) of 11.36, above the 50-day MA of 10.18, and above the 200-day MA of 10.29, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 65.89 is Neutral, neither overbought nor oversold. The STOCH value of 57.96 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	71 Outperform	$1.72B	580.00	0.49%	―	23.31%	―
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
RIOT	60 Neutral	$4.32B	24.36	-14.71%	―	59.99%	-283.24%
CLSK	58 Neutral	$3.42B	54.04	-11.36%	―	89.47%	-737.43%
ALIT	58 Neutral	$2.96B	―	-0.82%	2.87%	-26.04%	85.84%
DBD	48 Neutral	$2.17B	0.78	-1.02%	―	-2.66%	-100.56%
BTDR	43 Neutral	$2.47B	―	-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.