CleanSpark Inc.'s CLSK stock fell on Tuesday even as the company reported strong fourth-quarter results.
The company announced its results amid an exciting earnings season. Here are some key takeaways from analysts.
Analyst Mike Colonese gave the stock a “buy” rating and reiterated his price target of $27.
Bitcoin mining company CleanSpark, which provides investors with “pure exposure” to the world's largest cryptocurrency, reported “solid” results for the fourth quarter and fiscal year 2024, Colonese said in a note.
“FY2024 was another year of strong execution for CLSK,” the analyst said, noting that as of the end of September, the company's total installed capacity was 27.6EH/s, an increase of 187% year-on-year, compared to that of its peers. The average for other companies was about 75%. said. CleanSpark also increased overall vehicle efficiency by 23%, he added.
The company's revenue increased 125% to $379 million, and its total Bitcoin production for the year was 7,098. Adjusted EBITDA and margin increased to $246 million and 65%, respectively, “significantly improved from $25 million/15% in the prior year due to higher Bitcoin prices and lower power costs,” Colonese said. is writing.
Management reiterated its guidance for the prior calendar years 2024 and 2025 at 37 EH/s and 50 EH/s, respectively.
Check out other analysts' stock ratings.
Analyst Reginald Smith reiterated his rating on the company's stock as “neutral.”
Smith said CleanSpark's coin mining volume and total revenue decreased quarter-over-quarter, and Bitcoin prices also fell slightly. “Cash operating expenses trended higher sequentially, which is not a major surprise given CleanSpark's recent geographic expansion and the completion of the GRIID acquisition,” he added.
According to the analyst, management has reiterated its commitment to reaching 50EH/s in 2025. “Overall, it was a solid, albeit relatively quiet, quarter. CleanSpark is poised to repurpose its greenfield expansion and M&A strategy in 2025 to continue hashrate growth.” It seems like,” he further wrote.
CLSK Price Action: As of Tuesday's publication, CleanSparkhad's stock price was down 3.37% to $14.02.
read more:
• What's happening with Bitcoin mining stock CleanSpark on Tuesday?
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