Bitcoin miner CleanSpark (CLSK) achieved a year-end hashrate of 37 EH/s and plans to grow to over 50 EH/s by 2025. Despite Bitcoin's fourth halving event and increased difficulty, CleanSpark produced approximately 7,100 BTC for the year. Increased hashrate and improved fleet efficiency. The company recently completed the acquisition of GRIID Infrastructure Inc. as a strategic move aimed at expanding its mining capacity in Tennessee. Despite lower-than-expected fourth-quarter revenue and profit, CleanSpark recorded significant growth in annual revenue, posting a 125% year-over-year increase.
Don't miss our Black Friday offers:
Additionally, the company owns a large amount of Bitcoin, is expanding its mining fleet, and has stocks that are on a growth trajectory despite market fluctuations. It offers investors an attractive way to gain exposure to the Bitcoin market.
CleanSpark continues to increase hash rate
CleanSpark is a Bitcoin miner that operates a low-carbon data center. In November 2024, the company mined 622 Bitcoins, bringing its total Bitcoin holdings to 9,297. It sold 26.11 Bitcoins at an average price of approximately $84,356 per Bitcoin. The company had an average hash rate of 32.32 EH/s, an average fleet efficiency of 19.59 J/Th, and generated an average of 20.72 Bitcoins per day.
We have made significant progress towards our year-end hashrate goal of 37 EH/s, with plans to exceed 50 EH/s in the future. Two recently completed Bitcoin mining sites in Clinton, Mississippi are expected to be fully operational by the end of this week, adding 1 EH/s to the total. In addition, expansion projects in Tennessee will further increase production capacity and help meet year-end goals.
Construction is also underway on two immersion-cooled Bitcoin mining data centers in Cheyenne, Wyoming. This adds an estimated total of 5 EH/s to CleanSpark's hash rate. These centers will house the latest S21 Immersion XP.
Finally, CleanSpark recently acquired GRIID Infrastructure. This significantly expands the company's Bitcoin mining capacity in Tennessee. Hosting 50 MW of mining capacity, GRIID's existing employees will be integrated into CleanSpark's operations. This strategic move strengthens CleanSpark's geographic diversity and increases operational flexibility.
CleanSpark's recent financial results
The company reported its annual financial results for the fiscal year 2024, ending September 30, 2024. Revenue was $378.97 million, an increase of $210.5 million, or 125%, from $168.4 million in the previous fiscal year, but still missed analyst expectations. The forecast is $6.7 million. Additionally, the company demonstrated strong financial performance with adjusted EBITDA of $245.8 million, a significant increase from $25 million in the prior fiscal year. Despite strong financial growth, CleanSpark's net loss was $145.8 million, or $0.38 per share, $0.20 below consensus estimates.
Looking ahead to 2025, the company boasts a healthy balance sheet and strong liquidity, and plans to explore a variety of financing strategies.
What is the target price for CLSK stock?
The stock is up more than 60% in the past 90 days, indicating a positive outlook. The company's growth potential is supported by significant production capacity increases and significant Bitcoin reserves, which could lead to further growth if Bitcoin prices rise. However, with short interest at 19%, investors should expect potential volatility, although a breakout could provide an updraft that pushes the stock higher.
Analysts that follow the company have a bullish view on CLSK stock. For example, HC Wainwright analyst Mike Colonese, a 5-star analyst according to Tipranks ratings, pointed to strong performance with guidance for 2024 and 2025 of 50 EH/s each. He reiterated a buy rating on the stock with a price target of $27. .
CleanSpark has an overall rating of Strong Buy based on recent recommendations from 3 analysts. The average price target for CLSK stock is $25.67, giving it a potential upside of 84.01% from current levels.
See more CLSK analyst ratings
CleanSpark overview
CleanSpark has shown resilience in the face of increasing Bitcoin mining difficulty and continues to make significant progress towards its ambitious hash rate goals. The acquisition of GRIID infrastructure, CleanSpark's strong annual revenue growth of 125% year over year, strong Bitcoin holdings, and growing mining fleet underline the company's financial strength. The company's stock provides investors with exposure to the Bitcoin market.
disclosure