Cleanspark, Inc. (NASDAQ:CLSK) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts remain broadly bullish on CleanSpark: Sixteen analysts give the stock a consensus “Moderate Buy” rating, with 13 buys and one strong buy. The average 12-month price target is approximately $23.88 versus a recent price of $14.47.
• CleanSpark secured $2.276 billion in senior secured notes to fund its Georgia data-center expansion, with the project reportedly linked to Meta as a tenant. The financing supports the company’s move into AI-related data-center operations but adds significant leverage and interest costs.
• Operational results remain weak despite investor optimism: The company missed quarterly EPS expectations, posted a 30.5% year-over-year revenue decline and reported a net loss. Insider selling and the borrowing required for expansion add further risk, even as institutional investors increased their holdings and options activity signaled bullish positioning.

Shares of Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report) have earned an average rating of "Moderate Buy" from the sixteen analysts that are currently covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, one has issued a hold recommendation, thirteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $23.8846.

A number of equities analysts recently issued reports on CLSK shares. Citigroup began coverage on Cleanspark in a report on Wednesday, June 24th. They issued an "outperform" rating for the company. B. Riley Financial raised their price objective on shares of Cleanspark from $19.00 to $26.00 and gave the stock a "buy" rating in a report on Monday, August 3rd. BTIG Research restated a "buy" rating and set a $26.00 price objective on shares of Cleanspark in a research report on Tuesday, July 14th. Chardan Capital restated a "buy" rating and issued a $21.00 target price on shares of Cleanspark in a report on Monday, August 10th. Finally, Zacks Research raised shares of Cleanspark from a "strong sell" rating to a "hold" rating in a research report on Friday, July 10th.

Key Headlines Impacting Cleanspark

Here are the key news stories impacting Cleanspark this week:

• Positive Sentiment: CleanSpark priced $2.276 billion of 7.875% senior secured notes due 2031 at 98.5% of principal. The completed financing provides substantial capital for the company’s Georgia data-center development and is larger than the $2.227 billion offering initially proposed. CleanSpark Announces Pricing of $2.276 Billion of Senior Secured Notes
• Positive Sentiment: The Sandersville, Georgia, data-center project is reportedly tied to Meta as a tenant, strengthening the investment case by suggesting potential demand from a major technology company and supporting CleanSpark’s shift beyond cryptocurrency mining. CleanSpark Reveals Meta as Georgia Data Center Tenant
• Positive Sentiment: Unusually heavy options activity indicated bullish positioning: investors purchased 90,189 call options, approximately 42% above typical call volume. Bitcoin-mining stocks, including CLSK, also outperformed Bitcoin during the broader session. CleanSpark Climbs as Bitcoin Miners Outrun Bitcoin
• Neutral Sentiment: The notes are senior secured and carry a relatively high 7.875% coupon, potentially improving funding certainty while leaving the company exposed to interest costs and leverage as the data-center buildout proceeds.
• Negative Sentiment: The large borrowing increases financial risk and depends on successful, timely construction and customer ramp-up. This is important given CleanSpark’s recent quarterly loss, revenue decline and negative profitability metrics noted in the company’s latest results.

Insiders Place Their Bets

In other Cleanspark news, COO Taylor Monnig sold 25,249 shares of the company's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $13.34, for a total value of $336,821.66. Following the completion of the transaction, the chief operating officer owned 236,114 shares in the company, valued at $3,149,760.76. This represents a 9.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders have sold 29,816 shares of company stock valued at $394,352 over the last three months. 2.08% of the stock is owned by insiders.

Institutional Trading of Cleanspark

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP lifted its holdings in shares of Cleanspark by 81.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 14,102,777 shares of the company's stock valued at $120,007,000 after purchasing an additional 6,323,715 shares during the last quarter. Situational Awareness LP grew its stake in Cleanspark by 648.4% during the 1st quarter. Situational Awareness LP now owns 12,276,139 shares of the company's stock worth $104,470,000 after buying an additional 10,635,739 shares during the last quarter. Bank of America Corp DE grew its stake in Cleanspark by 49.2% during the 1st quarter. Bank of America Corp DE now owns 2,576,687 shares of the company's stock worth $21,928,000 after buying an additional 849,865 shares during the last quarter. Intrinsic Edge Capital Management LLC increased its position in Cleanspark by 617.3% during the first quarter. Intrinsic Edge Capital Management LLC now owns 894,735 shares of the company's stock worth $7,614,000 after buying an additional 770,000 shares during the period. Finally, Headlands Technologies LLC increased its position in Cleanspark by 214.8% during the second quarter. Headlands Technologies LLC now owns 512,476 shares of the company's stock worth $7,457,000 after buying an additional 349,658 shares during the period. Institutional investors and hedge funds own 43.12% of the company's stock.

Cleanspark Stock Up 8.4%

Shares of NASDAQ CLSK opened at $14.47 on Friday. The company has a market capitalization of $3.72 billion, a price-to-earnings ratio of -3.84 and a beta of 3.84. The company has a debt-to-equity ratio of 2.34, a current ratio of 5.91 and a quick ratio of 2.11. The business has a 50-day moving average of $12.98 and a two-hundred day moving average of $12.98. Cleanspark has a 1 year low of $8.00 and a 1 year high of $23.61.

Cleanspark (NASDAQ:CLSK - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.89) EPS for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.42). Cleanspark had a negative net margin of 146.90% and a negative return on equity of 18.63%. The business had revenue of $138.01 million during the quarter, compared to analysts' expectations of $142.37 million. During the same quarter in the previous year, the company posted $0.90 EPS. The company's revenue was down 30.5% compared to the same quarter last year. On average, analysts forecast that Cleanspark will post -1.4 earnings per share for the current fiscal year.

About Cleanspark

CleanSpark, Inc NASDAQ: CLSK is a bitcoin mining and energy technology company headquartered in Henderson, Nevada. The company owns and operates data centers that use specialized computing equipment to validate transactions on the Bitcoin network and earn bitcoin rewards.

CleanSpark focuses on developing and expanding mining infrastructure, with operations in the United States, including facilities in Georgia, Mississippi, Tennessee and Wyoming. Its activities include acquiring and deploying mining equipment, managing data-center operations and securing reliable, cost-effective power for its facilities.

The company historically developed software and energy-management solutions before shifting its primary focus toward bitcoin mining.

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