Bitcoin-Miner CleanSpark's Stock Climbs After Strong Q2 Revenue, 2 New Mining Locations

CleanSpark, Inc. CLSK shares are trading higher Friday after the company posted better-than-expected second-quarter financial results and announced it will acquire two new Bitcoin mining locations. 

The Details:

CleanSpark said quarterly revenue clocked in at $111.8 million which beat the analyst consensus estimate of $102.574 million by 8.99% and represents a 162.77% increase in revenue from the same period last year. The company also reported quarterly GAAP earnings of 58 per share. 

“The second quarter was record breaking and historic for CleanSpark, as we recognized approximately $112 million of revenue,” said Gary A. Vecchiarelli, CFO of CleanSpark.

“Our margins have also increased over the preceding first quarter which were helped by the rise in bitcoin prices and expanded margins. At our wholly owned sites, we experienced wholesale power costs as low as 1.3 cents per kilowatt hour, and a very favorable all-in power cost of 4.3 cents per kilowatt hour. We also ended the quarter with almost $700 million in cash and bitcoin, and virtually no debt, which put us in a strong position for the halving and will allow us to take advantage of opportunities the halving presents.”

CleanSpark announced it has entered into definitive agreements to acquire two bitcoin mining locations in Wyoming, with 75 MW of available power, for a cash payment of $18.75 million. The company said the agreement is anticipated to close in 45 days, and the sites are expected to add over four exahashes per second (EH/s) once fully operational. The company plans to break ground on the new facilities shortly after closing.

“Just three short months ago, we took a leap and expanded into Mississippi,” said Zach Bradford, CEO. “Today, I’m pleased to share that we are continuing our journey with our westward expansion into Wyoming. Diversifying our portfolio is integral to our strategy and we are well positioned to take advantage of similar acquisitions in the wake of the halving.”

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CLSK Stock Prediction 2024:

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Cleanspark, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Cleanspark, the 200-day moving average sits at $9.84, according to Benzinga Pro, which is below the current price of $17.25. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

CLSK Price Action: According to Benzinga Pro, CleanSpark shares are up 7.87% at $17.88 at the time of publication Friday.

Image: Reto Scheiwlliier from Pixabay