CleanSpark Is A High Conviction Name In Bitcoin Mining Sector: Analyst

H.C. Wainwright analyst Mike Colonnese reiterated the Buy rating on CleanSpark, Inc. CLSK, with a price forecast of $27.

CleanSpark reported first-quarter revenue of $162.3 million, beating analyst estimates of $150.87 million, according to Benzinga Pro. 

CleanSpark noted that its hashrate surpassed 40 EH/s in January. The company expects to reach its goal of 50 EH/s in the first half of 2025.

The analyst is bullish on CleanSpark’s performance, expecting another strong year in 2025. Colonnese foresees the company hitting its 50 EH/s target by June and potentially offering a year-end outlook.

See Also: Czech Republic Approves Bitcoin Tax Exemption For Long-Term Holders

Per the analyst, CleanSpark’s impressive results were driven by a significant increase in deployed hash rate, improved fleet efficiency, reduced production costs, and lower operating expenses.

The analyst remains highly confident in CleanSpark, considering it one of the top Bitcoin miners with an excellent management team, and continues to be optimistic about BTC prices in 2025.

The analyst keeps the 2025 revenue estimate at $854.9 million but raises the adjusted EBITDA forecast to $663.2 million from $411.2 million.

The estimates are based on a Bitcoin price of $98,866, an average network hash rate of 837 EH/s, and CleanSpark’s hash rate of 42 EH/s for the year ending September 30, 2025.

Risks to reaching the price forecast include Bitcoin price volatility, quicker-than-expected increases in network hash rate, and potential shareholder dilution from equity sales.

Price Action: CLSK shares are trading higher by 15.3% to $11.96 at last check Friday.

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