CleanSpark's Attractive Valuation And Bitcoin Stack Makes It A Buy, Analyst Says

Needham analyst John Todaro initiated coverage on CleanSpark Inc CLSK with a Buy rating and announced a Price Forecast of $20.00.

The analyst noted that Cleanspark is the second-largest bitcoin miner by hash rate and third largest by bitcoin stack.

CLSK maintains the lowest General & Administrative costs per EH in the analyst’s universe, with operational leverage expected to improve in 2025 as hash rate increases to 50 EH by second-quarter and 63 EH by mid-2026.

According to the analyst, the company has an attractive valuation, trading at the deepest discount in the analyst’s coverage on an EV/EBITDA basis.

The analyst expects this discount to narrow as CLSK reduces its reliance on equity issuances, with minimal dilution expected in 2025 due to full funding for near-term hash rate targets.

Strong balance sheet with approximately $660 million in net cash plus BTC, offers growth flexibility.

Additionally, CLSK is poised to unlock yield opportunities in 2025, which could generate over 5% returns on its ~10,000 BTC holdings, concluded the analyst.

Price Action: CLSK shares are trading lower by 0.11% at $10.26 at the last check Wednesday.

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