Download PDF

1. Company Snapshot

1.a. Company Description

CleanSpark, Inc.provides bitcoin mining and energy technology solutions worldwide.It operates in two segments, Digital Currency Mining and Energy.


The Digital Currency Mining segment engages in mining of bitcoin.The energy segment provides engineering, design and software, custom hardware, open automated demand response, solar, and energy storage solutions for microgrids and distributed energy systems to military, commercial, and residential customers; and develops platforms that enables designing, building, operating, and managing of energy assets.This segment also offers microgrid energy modeling, energy market communications, and energy management solutions comprising mPulse and mVoult, which are control platforms that enables integration and optimization of multiple energy sources; Canvas, a middleware for grid operators and aggregators to administrate load shifting programs; Plaid, a middleware for controls and Internet-of-Things products companies to participate in load shifting programs; and mVSO, an energy modeling software for internal microgrid design, as well as owns gasification energy technologies for various applications, such as feedstock for the generation of di-methyl ether.


In addition, it provides design, software development, and other technology-based consulting services; data center services, including rack space, power, and equipment; and various cloud services, such as virtual, virtual storage, and data backup services.The company was formerly known as Stratean Inc.and changed its name to CleanSpark, Inc.


in November 2016.CleanSpark, Inc.was incorporated in 1987 and is headquartered in Henderson, Nevada.

Show Full description

1.b. Last Insights on CLSK

CleanSpark, Inc.'s recent performance was negatively impacted by its Q1 earnings miss, with a loss of $0.1 per share versus the estimated $0.08 loss. The company's transition from pure bitcoin mining to AI and HPC data center development is underway, but industry-wide earnings cyclicality and bitcoin volatility have pressured the stock. Analyst downgrades, including a lowered price target from $18 to $14 by Keefe, Bruyette and Woods, have also affected the stock. Despite this, some analysts maintain a Buy rating, citing strong forecasts and anticipated profitability in 2027.

1.c. Company Highlights

2. CleanSpark's Q1 2026 Earnings: A Mixed Bag

CleanSpark reported a 12% year-over-year increase in revenue to approximately $119 million, driven by a higher realized Bitcoin price of almost $100,000 per Bitcoin. However, gross margins declined to 47% from 57% a year ago, primarily due to the year-over-year increase in network difficulty. The company recognized a net loss of approximately $379 million, compared to net income of approximately $247 million a year ago, driven primarily by mark-to-market adjustments to Bitcoin's fair value. Adjusted EBITDA was negative $295 million, compared to positive $322 million a year ago. The actual EPS came out at -$0.175, relative to estimates at -$0.1.

Publication Date: Feb -10

📋 Highlights
  • Revenue Growth:: Year-over-year revenue increased by $19 million (12%) driven by Bitcoin mining and infrastructure demand.
  • Net Loss Surge:: Net loss of $379 million vs. $247 million net income in Q1 2025, primarily due to Bitcoin fair value adjustments.
  • Liquidity Position:: $800 million in liquidity without selling Bitcoin, enabling strategic investments in AI and data centers.
  • High-Demand Assets:: Sandersville site (250 MW capacity) is energized and attracting hyperscalers, with Sealy site (285 MW) slated for 2027.
  • Capital Allocation:: $9–11 million per megawatt target for AI/HPC projects, prioritizing infrastructure over Bitcoin mining amid volatile prices.

Business Update

CleanSpark is making progress in its evolution into a digital infrastructure and data center development company, with a focus on AI and HPC (High-Performance Computing) business. The company is seeing strong demand for its assets, particularly at the Sandersville site, which has a 250-megawatt capacity and is already energized. As Gary Vecchiarelli mentioned, "We've been pragmatic about our assets, location, and access to behind-the-meter generation, leading to interest from multiple trillion-dollar balance sheet companies for long-term leases." This demand is expected to continue, driven by the growing need for AI infrastructure, as evidenced by Amazon's $200 billion investment in AI infrastructure in 2026.

Valuation and Outlook

CleanSpark's valuation metrics indicate a mixed picture. The stock trades at a P/S Ratio of 3.32, EV/EBITDA of 16.3, and P/B Ratio of 2.08. Analysts estimate next year's revenue growth at 13.4%. While the company's HPC business is advancing, the Bitcoin mining segment is facing challenges due to the current Bitcoin prices. CleanSpark expects a significant difficulty adjustment in the network, potentially followed by additional downward pressure. The company's focus on deploying capital towards AI, with a target range of $9-11 million per megawatt, is expected to drive growth.

Conclusion on Financial Health

CleanSpark has over $800 million of liquidity available without selling any of its Bitcoin holdings, providing the company with optionality. The company's diverse portfolio construction and expanding presence in existing markets are positives. However, the net loss and negative adjusted EBITDA are concerns. The company's ROIC and ROE are negative, at -8.46% and -13.75%, respectively, indicating a need for improvement in capital allocation and profitability.

3. NewsRoom

Card image cap

Tradr Targets Volatility With 2X Single-Stock ETFs On CleanSpark, Centrus, Coherent

Feb -24

Source: benzinga.com

Card image cap

HIVE Digital: A Re-Rating Waiting To Happen

Feb -19

Source: seekingalpha.com

Card image cap

CleanSpark (CLSK) Stock Is Surging Friday: What's Driving The Action?

Feb -13

Source: benzinga.com

Card image cap

Baader Bank Aktiengesellschaft Buys New Position in Cleanspark, Inc. $CLSK

Feb -12

Source: defenseworld.net

Card image cap

CleanSpark Gets Attention For The Wrong Reasons, It's The Transition That Matters

Feb -10

Source: seekingalpha.com

Card image cap

Cleanspark (NASDAQ:CLSK) Shares Gap Down on Analyst Downgrade

Feb -10

Source: defenseworld.net

Card image cap

CleanSpark Q1 Loss Wider Than Expected, Revenues Increase Y/Y

Feb -06

Source: zacks.com

Card image cap

CleanSpark, Inc. (CLSK) Q1 2026 Earnings Call Transcript

Feb -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (25.47%)

6. Segments

Bitcoin Mining

Expected Growth: 25.47%

CleanSpark's 25.47% growth in Bitcoin mining is driven by increasing adoption of renewable energy sources, reducing operational costs, and strategic expansion into new mining facilities. Additionally, the company's focus on energy efficiency, advanced mining technologies, and a strong balance sheet have contributed to its rapid growth.

Other Services

Expected Growth: 14.07%

CleanSpark's 14.07% growth in Other Services is driven by increasing demand for its energy-efficient solutions, expansion into new markets, and strategic partnerships. The company's focus on sustainability and energy management has resonated with customers, leading to increased adoption of its services. Additionally, its investments in digital transformation and data analytics have enhanced its service offerings, further contributing to growth.

7. Detailed Products

MicroGrid

A comprehensive energy management system that integrates multiple energy sources, including solar, wind, and energy storage, to provide reliable and efficient power.

mPulse

An advanced energy management and monitoring platform that provides real-time data and analytics to optimize energy efficiency and reduce energy waste.

Smart Metering

An advanced metering infrastructure that provides real-time energy usage data and analytics to utilities, municipalities, and commercial customers.

Energy Storage

A range of energy storage solutions, including batteries and other technologies, designed to optimize energy efficiency and reduce energy costs.

Solar and Renewable Energy

A range of solar and renewable energy solutions, including solar panels, wind turbines, and other technologies, designed to reduce carbon emissions and increase energy independence.

8. CleanSpark, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CleanSpark, Inc. operates in the renewable energy industry, which has a moderate threat of substitutes. While there are alternative energy sources, the company's focus on solar energy and energy storage systems provides a competitive advantage.

Bargaining Power Of Customers

CleanSpark, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. The company's products and services are also highly customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

CleanSpark, Inc. relies on a few key suppliers for its solar panels and energy storage systems. While the company has some bargaining power due to its volume purchases, suppliers still have some leverage in negotiations.

Threat Of New Entrants

The renewable energy industry is rapidly growing, and new entrants are attracted to the market. CleanSpark, Inc. faces a high threat of new entrants, which could lead to increased competition and pricing pressure.

Intensity Of Rivalry

The renewable energy industry is highly competitive, with many established players and new entrants vying for market share. CleanSpark, Inc. faces intense rivalry from competitors, which could lead to pricing pressure and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 2.41%
Debt Cost 17.67%
Equity Weight 97.59%
Equity Cost 24.41%
WACC 24.24%
Leverage 2.47%

11. Quality Control: CleanSpark, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sprinklr

A-Score: 4.8/10

Value: 3.8

Growth: 8.7

Quality: 7.9

Yield: 0.0

Momentum: 3.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
CleanSpark

A-Score: 4.1/10

Value: 7.0

Growth: 5.1

Quality: 8.2

Yield: 0.0

Momentum: 3.5

Volatility: 0.7

1-Year Total Return ->

View Full Report
Stock-Card
Dayforce

A-Score: 4.1/10

Value: 2.8

Growth: 7.3

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
PowerSchool

A-Score: 3.9/10

Value: 3.6

Growth: 7.3

Quality: 3.3

Yield: 0.0

Momentum: 6.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Bill.com

A-Score: 3.6/10

Value: 2.8

Growth: 9.4

Quality: 5.1

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Asana

A-Score: 3.4/10

Value: 4.4

Growth: 6.3

Quality: 3.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.66$

Current Price

10.66$

Potential

-0.00%

Expected Cash-Flows