Bitcoin Mining Stock's 'Strong Organic Growth' Make It A 'Must-Own,' Says Bullish Analyst

Shares of CleanSpark Inc CLSK climbed last week as Bitcoin BTC/USD prices rose, following the Federal Reserve's first interest rate cut in four years.

The company has grown faster than its peers over the past couple of years to become the second-largest public miner by deployed capacity, according to HC Wainwright.

Analyst Mike Colonnese reiterated a Buy rating and price target of $27.

The CleanSpark Thesis: A call with management showcased why the company is a "must-own mining stock" heading into the next stage of Bitcoin's price cycle, Colonnese said in a note.

Check out other analyst stock ratings.

The analyst mentioned the main takeaways from the call:

• CleanSpark continues to be on track to hit its hash rate guidance of 37 EH/s by yearend.
• The company’s 2025 guidance of 50 EH/s could prove to be conservative.
• Management is focusing on Bitcoin mining while many of its peers are diversifying into HPC/AI.
• "CleanSpark’s strategy of acquiring attractively priced, private turnkey BTC mining assets paired with strong organic growth has enabled the company to deliver nearly 160% growth in deployed capacity to date in 2024."

"Management sees several near-term positive catalysts for BTC and the mining sector starting in 4Q24, including the upcoming election in November (regardless of who wins) and expects BTC to reach $185k this cycle, which would represent a ~3x increase from current levels," he further wrote.

CLSK Price Action: Shares of CleanSpark were flat at $9.62 at the time of publication on Wednesday.

Read More: CleanSpark Acquires New Bitcoin Mining Sites: What’s Going On With The Mining Stock Tuesday?

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