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Cleanspark, Inc. (CLSK)
NASDAQ:CLSK
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Cleanspark
(NASDAQ:CLSK)
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Rating:54Neutral
Price Target:
$8.50
▼(-14.57% Downside)
Action:ReiteratedDate:02/06/26
The score is held back primarily by weak cash flow/cash burn and a bearish technical trend (price below major moving averages with negative MACD). Offsetting factors include strong revenue growth and balance-sheet flexibility, plus a low P/E and an earnings-call narrative supported by liquidity and buybacks, though volatility and AI build execution/capex risks remain meaningful.
Positive Factors
Balance-sheet liquidity & optionality
Substantial liquidity and convertible financing provide durable financial flexibility to fund AI/data center development, buybacks, and operations without immediate asset sales. That optionality reduces refinancing risk and supports multi-year capital deployment and strategic optionality.
Rapid revenue scaling and stable mining cash flow
Strong top-line growth reflects expanding mining scale and monetization of bitcoin production, creating a durable cash-generating core. Consistent revenue scale supports reinvestment into infrastructure and hedges cyclical crypto swings via diversified revenue streams.
Strategic shift to multi-stream digital infrastructure (AI/data centers)
Converting power and land into long-duration AI/data-center leases diversifies revenue away from spot mining. Tenant-driven diligence and large utility-grade capacity create structural potential for contracted, predictable cash flows and reduces sole dependence on BTC price cycles.
Negative Factors
Weak operating cash flow / free cash flow
Persistent negative operating and free cash flow indicates the business still burns cash despite revenue growth. Over months this undermines self-funding for high‑intensity builds, increases reliance on external financing, and elevates execution risk if markets tighten.
Earnings volatility from Bitcoin mark-to-market
Large mark‑to‑market swings introduce persistent earnings and equity volatility, complicating stakeholder assessment of operating performance, pressuring metrics tied to reported earnings, and potentially affecting covenant calculations and long-term strategic credibility.
High CapEx intensity and timing risk for AI builds
AI/data-center builds require large, front-loaded capital and have multi-year energization timelines. This increases execution and funding risk: delays or cost overruns can strain liquidity, postpone contracted revenue, and magnify the impact of current negative cash flow trends.
Cleanspark (CLSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.54B
Dividend YieldN/A
Average Volume (3M)27.10M
Price to Earnings (P/E)―
Beta (1Y)2.33
Revenue Growth102.21%
EPS GrowthN/A
CountryUS
Employees256
SectorFinancial
Sector Strength70
IndustrySoftware - Application
Share Statistics
EPS (TTM)-1.35
Shares Outstanding255,752,910
10 Day Avg. Volume19,141,012
30 Day Avg. Volume27,097,427
Financial Highlights & Ratios
PEG Ratio-0.04
Price to Book (P/B)1.88
Price to Sales (P/S)5.34
P/FCF Ratio-4.00
Enterprise Value/Market Cap1.58
Enterprise Value/Revenue5.13
Enterprise Value/Gross Profit12.41
Enterprise Value/Ebitda28.92
Forecast
1Y Price Target
$19.27Price Target Upside93.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)-1.82
Revenue Forecast (FY)$753.31M
Cleanspark Business Overview & Revenue Model
Company DescriptionCleanSpark, Inc. provides bitcoin mining and energy technology solutions worldwide. It operates in two segments, Digital Currency Mining and Energy. The Digital Currency Mining segment engages in mining of bitcoin. The energy segment provides engineering, design and software, custom hardware, open automated demand response, solar, and energy storage solutions for microgrids and distributed energy systems to military, commercial, and residential customers; and develops platforms that enables designing, building, operating, and managing of energy assets. This segment also offers microgrid energy modeling, energy market communications, and energy management solutions comprising mPulse and mVoult, which are control platforms that enables integration and optimization of multiple energy sources; Canvas, a middleware for grid operators and aggregators to administrate load shifting programs; Plaid, a middleware for controls and Internet-of-Things products companies to participate in load shifting programs; and mVSO, an energy modeling software for internal microgrid design, as well as owns gasification energy technologies for various applications, such as feedstock for the generation of di-methyl ether. In addition, it provides design, software development, and other technology-based consulting services; data center services, including rack space, power, and equipment; and various cloud services, such as virtual, virtual storage, and data backup services. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.
How the Company Makes MoneyCleanspark generates revenue primarily through its cryptocurrency mining operations, where it earns Bitcoin by validating transactions on the Bitcoin network. The company capitalizes on lower energy costs from renewable sources, allowing it to achieve higher profit margins compared to traditional mining operations. Additionally, Cleanspark may engage in sales of mined Bitcoin, leveraging market conditions to maximize revenue. The company also explores partnerships with energy providers and other stakeholders in the renewable energy space, which can enhance its operational efficiency and reduce costs further. Furthermore, Cleanspark may benefit from any increases in Bitcoin prices, as higher cryptocurrency valuations directly affect the profitability of its mining activities.
Cleanspark Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call reflects a constructive strategic transition: operational mining continues to generate durable cash flows and scale (>$180M revenue, >50 EH/s) while management is actively converting power and land assets into an AI data center platform with advanced tenant-driven diligence and sizable liquidity. Results were distorted this quarter by large non-cash mark-to-market Bitcoin adjustments that produced a reported net loss and negative adjusted EBITDA, but normalized operating metrics (normalized EBITDA ~$55M, strong gross margin ~47%) and DAM early wins show underlying cash generation. Key near-term risks are mark-to-market volatility, QoQ revenue pressure from difficulty and price, higher CapEx intensity for AI builds, and some timing uncertainty on site energization. On balance, strategic progress, strong liquidity, executive discipline (large share buybacks) and early revenue/cash generation from DAM and mining outweigh the transitory accounting losses and execution/timing risks.Q1-2026 Updates
Positive Updates
Revenue and Gross Margin
Revenue of ~$181M for Q1 FY2026 (more than $180M); year-over-year revenue growth of ~12% (approximately $19M); gross margin exceeded 47% (healthy margin despite macro/micro pressures).
Normalized Operating Cash Generation
On a normalized basis (adjusting for mark-to-market), normalized EBITDA was ~$55M, representing ~30% normalized margin — indicating positive cash generation from core operations.
Mining Scale and Efficiency
Scaled mining footprint of >50 exahash/s (EH/s); Bitcoin production revenue rate ~ $100,000 per BTC this quarter versus ~$84,000 in the year-ago quarter; less than 10% of the fleet currently unprofitable at prevailing Bitcoin prices.
Digital Asset Management (DAM) Early Success
DAM generated >$13M in premiums/cash in the quarter (~24% of normalized adjusted EBITDA); covered-call program added ~$7,700 (~8%) per Bitcoin on average sales price; annualized return of ~4.2% on average total balance from DAM; basis trade produced >5.5% annualized on allocated cash.
Balance Sheet Liquidity and Capital Actions
Closed $1.15B convertible offering in Nov 2025; cash balance increased >$400M QoQ with ~ $420M net cash proceeds retained after paying lines and repurchases; repurchased ~$463M of stock in the offering and >$600M total repurchases since Dec 2024 (~20% of shares outstanding repurchased).
Bitcoin Holdings and Financing Optionality
Holding ~13,000+ Bitcoin total with ~40% (~5,200 BTC) allocated to yield generation; Bitcoin valuation on balance sheet was $1.15B as of 12/31; combined cash and capacity on BTC-backed credit lines provide >$800M liquidity without selling Bitcoin.
Strategic AI / Data Center M&A and Pipeline
Acquired 271 acres in Austin County with 285 MW contracted power and potential gas behind-the-meter optionality; initiated Brazoria County development with initial 300 MW (expandable to 600 MW); added 122-acre parcel adjacent to Sandersville — aggregate Houston-area potential ~900 MW, forming an AI infrastructure hub.
Commercial Momentum and Tenant-Driven Diligence
Management reports advanced, tenant-driven diligence across multiple sites (power studies, cooling validation, commercial structuring); Sandersville cited as a clear frontrunner for demand given 250 MW of live power and energized substation.
Negative Updates
Large Non-Cash Mark-to-Market Impact
Reported net loss of approximately $379M in Q1 FY2026 versus net income of ~$247M a year ago; adjusted EBITDA negative $295M compared with +$322M YoY — primary driver was ~ $350M of non-cash mark-to-market Bitcoin fair-value adjustments.
Quarter-over-Quarter Revenue Decline
Revenues declined ~ $43M, or ~19% QoQ (from Q4 to Q1), primarily due to rising network difficulty and softer Bitcoin prices, resulting in some of the lowest cash prices historically during the quarter.
Gross Margin Compression YoY
Gross margin declined from ~57% a year ago to ~47% this quarter, driven mainly by higher network difficulty and modestly higher power costs.
Bitcoin Balance Sheet Revaluation
Bitcoin value on the balance sheet fell from ~$1.5B to ~$1.15B (difference ~ $350M), reflecting mark-to-market volatility that materially affected reported earnings.
Rising Power Costs and Operational Headwinds
Average power price increased YoY to $0.056/kWh from $0.049/kWh (QoQ decreased slightly from $0.059 to $0.056), contributing to margin pressure amid rising network difficulty.
Near-Term Negative Adjusted EBITDA and Elevated SG&A Potential
Adjusted EBITDA swung to negative $295M for the quarter (from +$182M in prior quarter) largely due to noncash items; management flagged expected increases to professional fees, payroll and G&A as AI strategy execution progresses.
Capital Intensity of AI Data Center Builds
Expected CapEx for AI data center deployments is high (~$9M–$11M per MW); timing and customer-specific design will materially affect cash deployment and when projects become revenue-generating.
Execution and Timing Uncertainty on Some Sites
Brazoria County closing contains conditions and lacks the same clarity as Sealy (Sealy has first 207 MW targeted H1 2027; Brazoria energization range cited Q4 2027–Q1 2028) — creating timing uncertainty for some capacity availability.
Company Guidance
The call guided that CleanSpark is evolving into a multi‑stream digital infrastructure platform anchored by scarce utility‑grade power while maintaining a >50 EH/s Bitcoin mining footprint; Q1 FY2026 results showed revenue ≈$181M (up ≈$19M YoY, ≈+12%; down ≈$43M Q/Q, ≈‑19%), gross margin ≈47% (vs ≈57% a year ago), net loss ≈$379M (vs net income ≈$247M prior year), adjusted EBITDA ≈‑$295M (vs +$322M YoY) driven by ≈$350M of mark‑to‑market charges, and normalized EBITDA ≈$55M (~30% normalized margin). Key financial/capital metrics: cash up >$400M after a $1.15B 0% convertible in Nov (net proceeds ≈$420M after paying lines and repurchasing ≈$463M of stock; total share repurchases >$600M since Dec‑2024, ~20% of shares repurchased), total debt ≈$1.8B (net debt to liquidity ≈1.1), >13,000 BTC holdings valued ≈$1.15B at 12/31, and >$800M liquidity available (cash + BTC‑backed lines). DAM produced >$13M in premiums/cash (≈24% of normalized EBITDA), a covered‑call uplift of ≈$7,700 per BTC (~8% vs avg sales price ≈$97,200), annualized premium return ≈4.2%, and a basis‑trade yield >5.5% (≈200 bps over risk‑free). AI/data‑center and operational guidance: assembled ~900 MW Houston‑area potential (Sandersville ≈250 MW live + new 122‑acre parcel; Sealy 271 acres/285 MW with ~207–209 MW targeted H1’27 and ~40 MW in ’28 and ’29; Brazoria up to 477 acres/initial 300 MW expandable to 600 MW with energization aimed Q4’27–Q1’28), expected build CapEx ≈$9–$11M per MW, tenant‑driven basis‑of‑design approach, focus on grade‑A counterparties and long‑dated leases, continued use of mining to monetize assets until load transition, and ongoing fleet efficiency improvements (current fleet ~16.07 J/TH moving toward 13.5 J/TH immersion machines, with <10% of fleet currently uneconomic at prevailing BTC prices).Cleanspark Financial Statement Overview
Summary
Strong revenue scaling and a generally low-leverage balance sheet support the financial profile, but performance is uneven with TTM profitability reversing and cash generation remaining a major weakness (deeply negative operating cash flow and free cash flow).Income Statement
Revenue has scaled rapidly (TTM (Trailing-Twelve-Months) up ~246% and FY2025 up ~102% YoY), showing strong top-line momentum. Profitability is mixed: FY2025 shows positive operating profit and net income, but TTM (Trailing-Twelve-Months) swings back to a sizable net loss and negative operating profit, signaling earnings volatility. Gross margin is healthy overall but compressed in TTM (Trailing-Twelve-Months) versus FY2025, suggesting pressure on unit economics or mix.62
Positive
Balance Sheet
The balance sheet looks conservatively levered with very low debt relative to equity in the latest period, and equity has grown substantially over time, supporting financial flexibility. Return on equity improved markedly from negative levels in prior years to positive in the most recent periods, indicating improved profitability versus history. Key risk: leverage metrics appear to shift meaningfully across periods, so capital structure stability should be monitored.74
Positive
Cash Flow
Cash generation is the main weak spot: operating cash flow is deeply negative in TTM (Trailing-Twelve-Months) and FY2025, and free cash flow is materially negative across recent periods, implying significant cash burn. While free cash flow growth is positive in the latest periods, it is improving from a very negative base rather than consistently producing cash. Overall, earnings quality is challenged because cash flow is not currently supporting reported profitability.28
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 785.19M | 766.31M | 378.97M | 168.41M | 131.53M | 39.29M |
| Gross Profit | 324.72M | 318.83M | 139.36M | 29.11M | 49.37M | 12.84M |
| EBITDA | 139.33M | 763.25M | 14.63M | -7.60M | 10.03M | 1.25M |
| Net Income | -261.04M | 364.46M | -145.78M | -138.15M | -57.33M | -21.81M |
Balance Sheet | ||||||
| Total Assets | 3.33B | 3.18B | 1.96B | 761.58M | 452.63M | 317.47M |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.01B | 553.80M | 86.18M | 32.22M | 38.93M |
| Total Debt | 1.79B | 824.44M | 66.95M | 16.74M | 22.22M | 1.54M |
| Total Liabilities | 1.94B | 1.01B | 201.82M | 85.91M | 48.61M | 11.76M |
| Stockholders Equity | 1.38B | 2.18B | 1.76B | 675.67M | 404.01M | 305.72M |
Cash Flow | ||||||
| Free Cash Flow | -1.05B | -1.02B | -1.04B | -318.12M | -117.23M | -252.56M |
| Operating Cash Flow | -502.71M | -461.03M | -233.66M | -17.25M | 73.46M | -23.99M |
| Investing Cash Flow | 29.88M | -305.66M | -920.40M | -331.93M | -210.98M | -229.16M |
| Financing Cash Flow | 654.12M | 688.87M | 1.25B | 357.93M | 139.95M | 268.06M |
Cleanspark Technical Analysis
Negative
9.95
Price Trends
11.28
Negative
13.54
Negative
12.20
Negative
Market Momentum
-0.46
Negative
44.71
Neutral
62.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLSK, the sentiment is Negative. The current price of 9.95 is below the 20-day moving average (MA) of 10.04, below the 50-day MA of 11.28, and below the 200-day MA of 12.20, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 44.71 is Neutral, neither overbought nor oversold. The STOCH value of 62.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLSK.
Cleanspark Risk Analysis
Cleanspark disclosed 79 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $5.54B | 32.75 | 17.93% | ― | 20.97% | 226.98% | |
54 Neutral | $2.54B | -9.29 | -15.34% | ― | 102.21% | ― | |
53 Neutral | $13.59B | 46.92 | 22.51% | ― | 236.14% | ― | |
52 Neutral | $2.49B | -0.82 | -95.42% | ― | 2.53% | -2.83% | |
51 Neutral | $88.18M | -0.75 | ― | ― | -35.61% | ― | |
46 Neutral | $3.11B | 7.71 | 15.90% | ― | 13.79% | -527.48% |
* Financial Sector Average
CLSK
Cleanspark
9.95
2.16
27.73%
ENPH
Enphase Energy
42.27
-10.60
-20.05%
PLUG
Plug Power
1.79
0.29
19.33%
RUN
Sunrun
13.25
7.08
114.75%
STEM
Stem Inc
10.51
2.51
31.37%
IREN
IREN
40.95
33.38
440.95%
Cleanspark Corporate Events
Stock BuybackPrivate Placements and Financing
Cleanspark Completes $1.15 Billion Convertible Notes Offering
Positive
Nov 13, 2025
On November 13, 2025, CleanSpark, Inc. completed a $1.15 billion offering of 0.00% Convertible Senior Notes due 2032, aimed at expanding its power and land portfolio and enhancing data center infrastructure. The company repurchased 30.6 million shares of its common stock for approximately $460 million, reflecting its commitment to long-term value creation and strengthening its position in the energy and infrastructure compute platform market.
The most recent analyst rating on (CLSK) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Cleanspark stock, see the CLSK Stock Forecast page.
Business Operations and StrategyStock BuybackPrivate Placements and Financing
CleanSpark Upsizes $1.15 Billion Convertible Notes Offering
Positive
Nov 12, 2025
On November 10, 2025, CleanSpark, Inc. announced the upsize and pricing of its $1.15 billion 0.00% Convertible Senior Notes due 2032, intended for qualified institutional buyers. The offering, expected to close on November 13, 2025, includes an option for initial purchasers to buy an additional $150 million in notes. The proceeds will be used for share repurchases, expanding power and land portfolios, developing data center infrastructure, repaying bitcoin-backed credit, and general corporate purposes. This strategic move could enhance CleanSpark’s market positioning by strengthening its financial resources and operational capabilities.
The most recent analyst rating on (CLSK) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Cleanspark stock, see the CLSK Stock Forecast page.
Business Operations and StrategyStock BuybackPrivate Placements and Financing
CleanSpark Announces $1 Billion Convertible Notes Offering
Positive
Nov 10, 2025
On November 10, 2025, CleanSpark, Inc. announced its intention to offer $1 billion in convertible senior notes due 2032, with an option for an additional $200 million, subject to market conditions. The proceeds will be used for share repurchases, expansion of power and land portfolio, development of data center infrastructure, and repayment of outstanding credit balances. This move is expected to impact CleanSpark’s financial strategy and market positioning, enhancing its operational capabilities and shareholder value.
The most recent analyst rating on (CLSK) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Cleanspark stock, see the CLSK Stock Forecast page.
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.