Bitcoin miner CleanSpark (CLSK) plans to reach a year-end hash rate of 37 EH/s and grow beyond 50 EH/s by 2025. Despite Bitcoin’s fourth halving event and increased difficulty, CleanSpark produced around 7,100 BTC for the year, driven by hash rate growth and fleet efficiency improvements. It recently completed the acquisition of GRIID Infrastructure Inc., a strategic move intended to increase mining capacities in Tennessee. Despite falling short of expectations on its Q4 revenue and earnings, CleanSpark posted significant growth in its annual revenues, registering an increase of 125% from the previous fiscal year.
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Furthermore, the company has substantial bitcoin holdings, an expanding mining fleet, and a stock on a growth trajectory despite market volatility. It offers investors an appealing way to gain exposure to the Bitcoin market.
CleanSpark Continues to Ramp Its Hash Rate
CleanSpark is a Bitcoin miner that operates low-carbon data centers. In November 2024, the company mined 622 Bitcoins, bringing its total Bitcoin holdings to 9,297. It sold 26.11 Bitcoins at an average price of approximately $84,356 per Bitcoin. The company’s average hash rate was 32.32 EH/s, with an average fleet efficiency of 19.59 J/Th, generating an average of 20.72 Bitcoin per day.
It is making significant strides towards its year-end hash rate goal of 37 EH/s and plans to exceed 50 EH/s in the future. Two recently completed Bitcoin mining sites in Clinton, Mississippi, are expected to be fully operational by the end of this week, adding 1 EH/s to its total. Additionally, expansion projects in Tennessee will increase its capacity further, helping it reach its year-end target.
Construction is also ongoing in Cheyenne, Wyoming, for two immersion-cooled Bitcoin mining data centers that will add an estimated combined total of 5 EH/s to CleanSpark’s hash rate. The centers will house the latest S21 immersion XPs.
Finally, CleanSpark recently acquired GRIID Infrastructure, which will significantly expand the company’s Bitcoin mining capacity in Tennessee. GRIID’s existing workforce, hosting 50 MW of mining capacity, will be integrated into CleanSpark’s operations. This strategic move enhances CleanSpark’s geographic diversity and provides greater operational flexibility.
CleanSpark’s Recent Financial Results
The company reported its annual financial results for the Fiscal year 2024, ending September 30, 2024. Revenue of $378.97 million marked an increase of $210.5 million, or 125%, from $168.4 million for the prior fiscal year, yet still fell short of analysts’ forecasts by $6.7 million. Furthermore, the company showed a strong financial performance with an Adjusted EBITDA of $245.8 million, a substantial increase from $25.0 million in the last fiscal year. Despite the robust financial growth, CleanSpark’s net loss for the year was $145.8 million, or $0.38 per share, which missed consensus projections by $0.20.
Heading into 2025, the company boasts a healthy balance sheet and strong liquidity, and plans to explore diverse capital-raising strategies.
What Is the Price Target for CLSK Stock?
The stock has risen over 60% in the past 90 days and presents a promising outlook. The company’s growth potential is backed by substantial capacity growth and considerable Bitcoin reserves, which could lead to further growth if Bitcoin prices increase. However, with 19% short interest, investors should expect potential volatility, although a breakout could provide an updraft pushing the stock higher.
Analysts following the company have been bullish on CLSK stock. For instance, H.C. Wainwright analyst Mike Colonnese, a five-star analyst according to Tipranks’ ratings, reiterated a Buy rating on the shares with a $27 price target, noting its strong performance in fiscal 2024 and 2025 guidance of 50 EH/s, respectively.
CleanSpark is rated a Strong Buy overall, based on the recent recommendations from three analysts. The average price target for CLSK stock is $25.67, representing a potential upside of 84.01% from current levels.
CleanSpark in Summary
CleanSpark has shown resilience in the face of increased Bitcoin mining difficulty and continues to make significant strides toward its ambitious hash rate goals. The acquisition of GRIID Infrastructure, CleanSpark’s strong annual revenue growth of 125% from the previous fiscal year, robust Bitcoin holdings, and increasing mining fleet underscores its financial fortitude. The company’s stock offers investors exposure to the Bitcoin market.
