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Cleanspark (CLSK)
NASDAQ:CLSK
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Cleanspark
(NASDAQ:CLSK)
68Neutral
Positive Factors
Financial Performance
Revenues increased by 82% driven by higher average BTC prices and a significant increase in BTC production.
Operational Efficiency
Cleanspark has the lowest general and administrative costs per exahash among its peers, indicating strong operational leverage.
Negative Factors
Network Difficulty
The reduction in BTC mined during the fourth quarter was influenced by lower block subsidies and increased network difficulty, impacting quarterly revenues.
Cleanspark (CLSK) vs. S&P 500 (SPY)
Market Cap
$2.32B
Dividend YieldN/A
Average Volume (3M)23.28M
Price to Earnings (P/E)55.2
Beta (1Y)2.37
Revenue Growth118.07%
EPS GrowthN/A
CountryUS
Employees270
SectorFinancial
Sector Strength77
IndustryCapital Markets
Share Statistics
EPS (TTM)0.15
Shares Outstanding280,807,620
10 Day Avg. Volume25,292,498
30 Day Avg. Volume23,282,750
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.34
Price to Cash Flow (P/CF)-4.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.50Price Target Upside184.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Cleanspark Business Overview & Revenue Model
Company DescriptionCleanSpark, Inc. (CLSK) is a technology company primarily focused on providing advanced energy software and control technology solutions, as well as bitcoin mining operations. The company's energy segment offers microgrid solutions that enable customers to design, engineer, communicate, and manage distributed energy resources. Additionally, CleanSpark's growing bitcoin mining operations leverage sustainable energy solutions to optimize cryptocurrency mining efficiency.
How the Company Makes MoneyCleanSpark generates revenue through two primary streams: energy solutions and bitcoin mining. In the energy sector, the company makes money by providing microgrid energy solutions to commercial, industrial, and residential clients, which include software licensing, engineering services, project development, and energy storage solutions. These services help clients reduce energy costs and enhance energy resilience. The bitcoin mining segment contributes to revenue by mining and selling bitcoin. CleanSpark operates mining facilities that utilize renewable and low-cost energy sources to maximize mining efficiency and profitability. The company's strategic partnerships and investments in energy-efficient technologies further enhance its revenue potential.
Cleanspark Financial Statement Overview
Summary
Cleanspark exhibits strong revenue growth and maintains a healthy balance sheet with minimal leverage. However, profitability remains an issue due to high operating expenses and interest costs, and the cash flow situation is concerning with negative free cash flow. The company needs to improve operational efficiency to enhance margins and generate positive cash flows.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.67
Positive
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.75
Positive
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.50
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 141.05M | 378.97M | 168.41M | 131.52M | 49.44M | 10.03M | Gross Profit |
| 102.55M | 213.45M | 29.11M | 90.29M | 35.47M | 2.12M | EBIT |
| -2.76M | -149.04M | -131.04M | -16.07M | -15.69M | -15.14M | EBITDA |
| 35.40M | 6.30M | -7.60M | 10.15M | 2.00M | -10.02M | Net Income Common Stockholders |
| -24.10M | -145.78M | -136.59M | -57.66M | -22.51M | -33.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.21B | 553.80M | 86.18M | 32.22M | 42.40M | 4.09M | Total Assets |
| 2.78B | 1.96B | 761.58M | 452.62M | 317.47M | 22.34M | Total Debt |
| 7.21M | 59.78M | 16.74M | 22.22M | 2.36M | 572.46K | Net Debt |
| -269.38M | -61.44M | -12.47M | 1.76M | -15.68M | -2.55M | Total Liabilities |
| 757.71M | 201.82M | 84.35M | 48.61M | 11.76M | 5.91M | Stockholders Equity |
| 2.02B | 1.76B | 677.23M | 404.01M | 305.72M | 16.43M |
| Cash Flow | Free Cash Flow | ||||
| -27.18M | -1.04B | -332.70M | -119.25M | -264.01M | -6.76M | Operating Cash Flow |
| 40.68M | -233.66M | -30.39M | 71.44M | -35.43M | -6.64M | Investing Cash Flow |
| -180.11M | -920.40M | -331.93M | -210.98M | -217.71M | -2.38M | Financing Cash Flow |
| 119.89M | 1.25B | 371.07M | 141.96M | 268.06M | 4.31M |
Cleanspark Technical Analysis
Negative
8.26
Price Trends
9.89
Negative
11.36
Negative
12.41
Negative
Market Momentum
-0.62
Negative
41.31
Neutral
52.18
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 8.26 is below the 20-day moving average (MA) of 8.84, below the 50-day MA of 9.89, and below the 200-day MA of 12.41, indicating a bearish trend. The MACD of -0.62 indicates Negative momentum. The RSI at 41.31 is Neutral, neither overbought nor oversold. The STOCH value of 52.18 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 71 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $2.32B | 55.18 | 5.30% | ― | 118.07% | ― | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
63 Neutral | $2.65B | 21.95 | 4.35% | ― | 34.20% | ― | |
55 Neutral | $4.61B | 9.71 | 18.84% | ― | 69.38% | 30.30% | |
49 Neutral | C$1.72B | 3.54 | 2.56% | ― | 199.41% | ― | |
44 Neutral | $724.20M | ― | -31.62% | ― | 45.19% | -33.48% | |
39 Underperform | $399.98M | ― | -2.15% | ― | 27.99% | 90.99% |
* Financial Sector Average
Performance Comparison
CLSK
Cleanspark
8.10
-9.01
-52.66%
RIOT
Riot Platforms
7.85
-3.88
-33.08%
MARA
Marathon Digital Holdings
13.11
-6.59
-33.45%
TSE:HIVE
HIVE Digital Technologies
2.55
-1.68
-39.72%
TSE:BITF
Bitfarms
1.68
-1.50
-47.17%
TSE:HUT
Hut 8
17.46
7.04
67.56%
Cleanspark Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -20.42% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call for CleanSpark's first fiscal quarter of 2025 reflects a strong financial performance with significant revenue and income growth, improved operational efficiency, and strategic funding secured for expansion. Despite minor challenges with power costs and temporary uptime decreases, the overall outlook remains positive with strategic initiatives in place for future growth.Highlights
Record Revenue Growth
First quarter revenue was $162.3 million, representing 120% growth compared to the same period last year.
Strong Net Income and EBITDA
Net income of $246.8 million and adjusted EBITDA grew to $321.6 million, setting a new benchmark for the industry.
Improved Fleet Efficiency
Fleet efficiency improved from 21.94 joules per terahash to 17.59 joules per terahash, a 20% improvement from the previous quarter.
Successful Convertible Bond Issuance
Secured a $650 million convertible bond, fully funding the path to 50 exahash without relying on equity.
Bitcoin Holdings Growth
Total Bitcoin in treasury stood at 9,952 at the end of the quarter and reached 10,556 by the end of January.
Lowlights
Higher Power Costs
Cost of power in the first quarter was $0.049 per kilowatt hour, slightly higher than the same quarter last year and the previous quarter.
Temporary Decrease in Uptime
Slight temporary decrease in uptime to 94% due to a hurricane and relocation of 8,000 miners.
Company Guidance
During CleanSpark's fiscal year first quarter 2025 earnings call, the company reported substantial growth and outlined its strategic plans. They achieved a revenue of $162.3 million, marking a 120% increase compared to the same period last year, and a net income of $246.8 million. Their adjusted EBITDA reached $321.6 million, setting a new industry benchmark. CleanSpark highlighted its strategic positioning as a vertically integrated Bitcoin mining company, which has led to its status as the largest Bitcoin producer in the U.S. The company closed the quarter with a total Bitcoin treasury of 9,952, increasing to 10,556 by the end of January 2025. They also secured a $650 million convertible bond to fund their growth plans and aim to reach 50 exahash by mid-2025, emphasizing that this expansion is fully funded without relying on equity. The average price of Bitcoin during the quarter was over $83,000, peaking at $108,000, with a marginal cost per Bitcoin of approximately $34,000. CleanSpark's fleet efficiency improved, and they plan to continue expanding their operations in energy-abundant states like Georgia, Wyoming, and Tennessee.Cleanspark Corporate Events
M&A TransactionsBusiness Operations and Strategy
Cleanspark Expands Bitcoin Mining Capacity with GRIID Acquisition
Positive
Oct 31, 2024
CleanSpark, Inc. has successfully completed its acquisition of GRIID Infrastructure Inc., aiming to expand its Bitcoin mining capacity in Tennessee to over 400 MW. The merger, approved by GRIID’s shareholders, is expected to enhance CleanSpark’s power supply diversity and operational flexibility. The integration of GRIID’s workforce with CleanSpark’s team is anticipated to accelerate the company’s growth in the Bitcoin industry, backed by Tennessee’s supportive business environment and reliable power infrastructure.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.