On Tuesday, H.C. Wainwright maintained its Buy rating and $27.00 price target for CleanSpark Inc. (NASDAQ:CLSK), highlighting the company's strong focus on Bitcoin (BTC) mining. According to InvestingPro data, analyst targets range from $10.50 to $30.00, with the stock showing remarkable momentum through a 90% return over the past year.
CleanSpark reported impressive fourth-quarter and full-year 2024 results on Monday, confirming its commitment to reach hash rates of 37 EH/s and 50 EH/s by the end of 2024 and 2025, respectively.
CleanSpark's performance in FY2024 was marked by significant growth, with a 187% year-over-year increase in total deployed capacity, reaching 27.6 EH/s at the end of September. This growth rate surpassed the industry average of approximately 75%. InvestingPro analysis reveals impressive revenue growth of 141% in the last twelve months, with analysts expecting continued sales growth this year.
The company's market capitalization has grown to $3.75 billion, reflecting strong investor confidence. The company also improved its fleet efficiency by 23%. For FY2024, CleanSpark generated $379 million in total revenue, a 125% increase from the previous year, and produced a total of 7,098 BTC, up from 6,903 in FY2023.
The company's adjusted EBITDA margins expanded to $246 million, or 65%, aligning with estimates and marking a substantial improvement from the $25 million, or 15%, seen in the prior year. This growth was attributed to higher BTC prices and reduced power costs.
Over the past year, CleanSpark has added 423 MW of operating infrastructure to its portfolio, which now totals 726 MW. This expansion was achieved through organic growth at existing sites and strategic acquisitions of turnkey mining facilities, as well as entering three new states. As of the time of the earnings call, CleanSpark was operating at 33.5 EH/s with a fleetwide efficiency of 19 J/TH and was close to reaching its end-of-year target of 37 EH/s.
Looking ahead, CleanSpark is positioned as one of the largest and most efficient BTC mining operators. The company is preparing for 2025 with over 150 MW of site development across Tennessee and Wyoming and has miner orders/options in place to potentially exceed the 50 EH/s hash rate guidance by the end of 2025.
InvestingPro subscribers can access 14 additional investment tips and a comprehensive Pro Research Report, offering detailed analysis of CleanSpark's financial health, which currently rates as "Fair" with particularly strong momentum scores. CleanSpark's balance sheet remains robust, with a nearing "hodl" balance of 10,000 BTC, signifying over $1 billion in total liquidity, including $121 million in cash as of September 30.
CleanSpark's strategic approach to capital deployment during market downturns has established it as a leading BTC mining company poised for the anticipated 2025 BTC bull market. H.C. Wainwright's reiterated Buy rating reflects confidence in CleanSpark as a top investment for exposure to BTC.
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