Cleanspark (CLSK) AI Stock Analysis

• Market Cap: $2.47B
• Dividend Yield: N/A
• Average Volume (3M): 26.59M
• Price to Earnings (P/E): 58.9
• Beta (1Y): 1.62
• Revenue Growth: 118.07%
• EPS Growth: N/A
• Country: US
• Employees: 256
• Sector: Financial
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.15
• Shares Outstanding: 280,807,620
• 10 Day Avg. Volume: 25,219,437
• 30 Day Avg. Volume: 26,592,417
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 9.96
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.14
• Price Target Upside: 128.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Cleanspark's strengths lie in its impressive revenue growth and strategic positioning in Bitcoin mining, as well as a strong balance sheet. However, challenges in profitability and cash flow management weigh heavily. The stock's valuation appears high, which could deter potential investors. Positive elements from the earnings call and corporate events, such as strategic funding and leadership retention, partially offset these concerns, resulting in a moderate overall score.

Positive Factors

Financial Performance

Revenues increased by 82% driven by higher average BTC prices and a significant increase in BTC production.

Infrastructure Expansion

Cleanspark, Inc. has expanded its operating infrastructure significantly, adding 423 MW to its portfolio through organic growth and strategic acquisitions.

Operational Efficiency

Cleanspark has the lowest general and administrative costs per exahash among its peers, indicating strong operational leverage.

Valuation

Cleanspark is considered a quality miner trading at attractive valuation levels.

Negative Factors

Network Challenges

Posted a miss on the well-understood network difficulty seen across the sector.

Production Challenges

The reduction in BTC mined during the fourth quarter was influenced by lower block subsidies and increased network difficulty, impacting quarterly revenues.

Cleanspark Business Overview & Revenue Model

Company Description

Cleanspark, Inc. (CLSK) is a diversified energy company operating primarily in the renewable energy sector. The company focuses on providing advanced energy solutions through software and hardware systems that enable microgrid optimization and energy storage. Cleanspark's core offerings include energy software platforms, energy storage systems, and turnkey microgrid implementation services, catering to commercial, industrial, and residential clients who seek efficient and sustainable energy management solutions.

How the Company Makes Money

Cleanspark generates revenue through multiple streams centered around its energy solutions. The company earns money by selling its proprietary energy software platforms, which optimize energy usage and efficiency for clients with microgrid systems. Additionally, Cleanspark provides energy storage solutions, including the sale and installation of energy storage systems that help clients manage energy consumption and reduce costs. Another significant revenue stream comes from its turnkey microgrid services, where Cleanspark designs, builds, and maintains microgrid systems for clients. These services often involve long-term maintenance contracts, providing a steady income. The company may also engage in partnerships with other firms in the energy sector to expand its market reach and enhance its technological offerings, contributing to its revenue growth.

Cleanspark Financial Statement Overview

Summary

Cleanspark shows strong revenue growth and a robust balance sheet with low leverage. However, profitability is weak, with negative EBIT margins and substantial cash flow challenges. The company must improve operational efficiency and cash flow management to sustain growth.

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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
378.97M	168.41M	131.52M	49.44M	10.03M
	Gross Profit
213.45M	29.11M	90.29M	35.47M	2.12M
	EBIT
-149.04M	-131.04M	-16.07M	-15.69M	-15.14M
	EBITDA
14.63M	-7.60M	10.15M	2.00M	-10.02M
	Net Income Common Stockholders
-145.78M	-136.59M	-57.66M	-22.51M	-33.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
553.80M	86.18M	32.22M	42.40M	4.09M
	Total Assets
1.96B	761.58M	452.62M	317.47M	22.34M
	Total Debt
66.95M	16.74M	22.22M	2.36M	572.46K
	Net Debt
-54.27M	-12.47M	1.76M	-15.68M	-2.55M
	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	-332.70M	-119.25M	-264.01M	-6.76M
	Operating Cash Flow
-233.66M	-30.39M	71.44M	-35.43M	-6.64M
	Investing Cash Flow
-920.40M	-331.93M	-210.98M	-217.71M	-2.38M
	Financing Cash Flow
1.25B	371.07M	141.96M	268.06M	4.31M

Cleanspark Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.81
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 8.81 is above the 20-day moving average (MA) of 7.96, above the 50-day MA of 7.99, and below the 200-day MA of 10.82, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 56.79 is Neutral, neither overbought nor oversold. The STOCH value of 61.66 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	72 Outperform	$1.22B	―	-0.13%	―	24.81%	98.55%
CLSK	65 Neutral	$2.47B	58.85	5.30%	―	118.07%	―
Sector *	64 Neutral	$12.64B	9.74	8.05%	17044.60%	12.66%	-4.62%
RIOT	62 Neutral	$3.00B	24.36	4.35%	―	34.20%	―
DBD	52 Neutral	$1.75B	0.78	-1.66%	―	-0.25%	-100.93%
ALIT	52 Neutral	$2.89B	―	-3.15%	1.50%	-31.61%	51.16%
BTDR	49 Neutral	$2.11B	―	-13.88%	―	―	―

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.

Spark’s Take on CLSK Stock

According to Spark, TipRanks’ AI Analyst, CLSK is a Neutral.

CleanSpark’s stock is characterized by strong revenue growth and strategic expansion plans, contributing positively to its score. However, challenges in profitability and cash flow management, coupled with bearish technical indicators and an overvalued valuation, present significant risks. The positive earnings call partially offsets these concerns, reflecting an overall moderate stock outlook.

To see Spark’s full report on CLSK stock, click here.