CleanSpark Inc

CleanSpark, Inc. (NASDAQ: CLSK) is a bitcoin mining company. The Company independently owns and operates approximately eight data centers in Georgia for a total developed capacity of 230 megawatts (MW). The Company is engaged in developing an additional 150 MW at its data center in Sandersville, Georgia. It does not host miners for any other companies, and has a partner in Massena, New York, who hosts approximately 50 MW for the Company.

Recent Business and Financial Updates

• Overview of February 2025 Bitcoin Mining Update: CleanSpark, Inc. (Nasdaq: CLSK), released its unaudited Bitcoin mining and operations update for February 2025 on March 5, 2025. The company, branded as "America's Bitcoin Miner®," reported mining 624 Bitcoin during the 28-day month, despite its brevity. This performance underscores CleanSpark's strategic focus on a pure-play Bitcoin mining approach, as highlighted by CEO and President Zach Bradford. The company increased its Bitcoin treasury by nearly 6% month-over-month, reaching a total of 11,177 Bitcoin, reflecting its commitment to enhancing its holdings through operational excellence.
• Operational Achievements and Efficiency Improvements: The February update revealed significant operational strides, with the company's month-end operating hashrate reaching 40.7 EH/s and an average hashrate of 39.07 EH/s throughout the month. CleanSpark achieved an average fleet efficiency of 17.07 J/Th, with a peak efficiency of 16.82 J/Th, driven by increased run times and reduced weather-related curtailments of its S19XP miner subset. The company sold 2.73 Bitcoin at an average price of approximately USD 95,695 per Bitcoin, while maintaining a deployed fleet of 198,715 miners. Additionally, CleanSpark completed the transition of its portfolio to 100% owned and operated status by removing the last machines from Coinmint in New York, supported by nearly 1 GW of contracted power capacity.
• Expansion and Future Growth Plans: CleanSpark is actively expanding its infrastructure across multiple regions to support its growth trajectory. In Georgia, ongoing expansions and immersion deployments are expected to enhance performance in its most mature market, contributing to the company's mid-year guidance. In Cheyenne, Wyoming, power contracts have been expanded by 35 MW to a total of 110 MW, with immersion deployments leading portfolio hashrate performance; further phases are slated for completion in the coming weeks. In Jackson, Tennessee, construction of 48 MW of air-cooled infrastructure is underway, aiming to power approximately 3.1 EH/s and serve as a key participant in the Tennessee Valley Authority's demand response program, with hashrate expected online early in the next quarter. The company remains on track to achieve a 50 EH/s hashrate by June 30, 2025, with plans to invest in a power pipeline supporting up to 60 EH/s and beyond.
• Financial Results for First Quarter Fiscal Year 2025: On February 6, 2025, CleanSpark reported its financial results for the first quarter of fiscal year 2025, ending December 31, 2024. The company recorded quarterly revenues of USD 162.3 million, a 120% increase from the USD 73.8 million reported in the same period the previous year. Net income surged to USD 246.8 million, or USD 0.85 per basic share, compared to USD 25.9 million, or USD 0.14 per basic share, in the prior year. Adjusted EBITDA rose to USD 321.6 million from USD 69.1 million, reflecting robust financial growth. The marginal cost to mine Bitcoin decreased by 6% to approximately USD 34,000 per coin at owned facilities, highlighting improved operational efficiency.
• Balance Sheet Strength and Strategic Outlook: CleanSpark's balance sheet as of December 31, 2024, demonstrated significant financial strength, with total assets reaching USD 2.8 billion, including USD 276.6 million in cash, USD 929.1 million in Bitcoin holdings, and USD 1.2 billion in total current assets. Total liabilities stood at USD 757.7 million, with USD 641.4 million in long-term debt, while stockholders' equity was USD 2.0 billion, supported by working capital of USD 1.2 billion, including a USD 50 million bitcoin-collateralized line of credit. The company’s strategic capital moves, including a USD 650 million convertible bond and the conclusion of its at-the-market offering program, position it to pursue expansion and maintain a clean balance sheet. Leadership emphasized self-mining all 10,500+ Bitcoin in its treasury domestically, with plans to replicate its successful Georgia model in Wyoming, Tennessee, and beyond to reach 50 EH/s in 2025.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 40.02, currently recovering from oversold zone, with expectations of a consolidation or an upward momentum in case the current support levels of USD 7- USD 7.50 hold. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given to CleanSpark, Inc. (NASDAQ: CLSK) at the current market price of USD 7.78, as of March 17, 2025, at 06:40 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 17, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.