Investors Buy Large Volume of Call Options on Cleanspark (NASDAQ:CLSK)

Key Points

• Unusually heavy call option buying hit CleanSpark, with investors trading 95,624 call contracts on Tuesday, about 49% above its average daily volume.
• Sentiment got a boost from a $6.6 billion long-term lease with a major global technology company, which could expand to $11.6 billion if extensions are exercised and diversifies CleanSpark beyond Bitcoin mining.
• BTIG reaffirmed a Buy rating and lifted its price target to $26, even as the stock has faced recent earnings pressure and mixed operating results.

Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors acquired 95,624 call options on the company. This represents an increase of approximately 49% compared to the average daily volume of 63,983 call options.

Cleanspark News Summary

Here are the key news stories impacting Cleanspark this week:

• Positive Sentiment: CleanSpark’s $6.6 billion long-term lease with a major global technology company gives investors a much clearer, more predictable revenue stream and signals a meaningful diversification away from pure Bitcoin mining. CleanSpark Secures Twenty-Year Lease with High-Investment Grade Global Technology Company for Data Center in Sandersville, Georgia
• Positive Sentiment: The lease could be even larger over time, with potential revenue rising to $11.6 billion if both five-year extensions are exercised, which strengthens the long-term growth story. CleanSpark shares surge after company secures $6.6B data center lease agreement
• Positive Sentiment: BTIG reaffirmed its Buy rating and raised its price target to $26, reinforcing bullish sentiment after the new lease announcement. BTIG Reiterates Buy Rating on CleanSpark Inc. (CLSK)
• Neutral Sentiment: CleanSpark also reported June Bitcoin production of 614 BTC, which shows the mining business remains active, but investor focus is currently centered more on the new data center lease than on monthly operating output. CleanSpark (CLSK) Reports June Bitcoin Output, Is The 42% Undervalued View Still Credible?
• Negative Sentiment: Earlier articles noted pressure on the stock from a softer earnings outlook and recent share weakness, which helps explain why the market had been cautious before today’s lease-driven rally. CleanSpark (CLSK) Is Down 8.5% After Strong June Bitcoin Output But Softer Earnings Outlook

Cleanspark Stock Performance

Shares of NASDAQ CLSK traded up $0.66 during midday trading on Tuesday, hitting $13.02. 48,426,581 shares of the company's stock were exchanged, compared to its average volume of 23,427,408. The company has a debt-to-equity ratio of 1.81, a current ratio of 8.26 and a quick ratio of 8.26. Cleanspark has a twelve month low of $8.00 and a twelve month high of $23.61. The stock's 50 day moving average price is $15.35 and its 200-day moving average price is $12.38. The firm has a market cap of $3.34 billion, a P/E ratio of -6.28 and a beta of 3.83.

Cleanspark (NASDAQ:CLSK - Get Free Report) last issued its quarterly earnings results on Monday, May 11th. The company reported ($1.52) EPS for the quarter, missing analysts' consensus estimates of ($0.25) by ($1.27). Cleanspark had a negative net margin of 67.66% and a positive return on equity of 7.07%. The business had revenue of $136.41 million for the quarter, compared to analyst estimates of $145.35 million. During the same period last year, the business posted ($0.49) earnings per share. Cleanspark's revenue for the quarter was down 24.9% on a year-over-year basis. Equities research analysts anticipate that Cleanspark will post -1.19 EPS for the current year.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on CLSK. Weiss Ratings lowered shares of Cleanspark from a "sell (d)" rating to a "sell (d-)" rating in a research report on Friday, May 22nd. Needham & Company LLC boosted their target price on Cleanspark from $17.00 to $18.00 and gave the stock a "buy" rating in a report on Monday, May 4th. Citigroup assumed coverage on shares of Cleanspark in a research note on Wednesday, June 24th. They issued an "outperform" rating for the company. HC Wainwright restated a "buy" rating on shares of Cleanspark in a research note on Tuesday. Finally, Cantor Fitzgerald reduced their target price on Cleanspark from $17.00 to $14.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Cleanspark presently has an average rating of "Moderate Buy" and an average target price of $21.12.

Institutional Trading of Cleanspark

A number of hedge funds and other institutional investors have recently made changes to their positions in CLSK. Integrated Wealth Concepts LLC purchased a new stake in shares of Cleanspark during the first quarter valued at $68,000. Caxton Associates LLP bought a new stake in shares of Cleanspark in the 1st quarter valued at approximately $169,000. United Services Automobile Association bought a new position in shares of Cleanspark during the 1st quarter valued at $125,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Cleanspark by 16.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 598,994 shares of the company's stock valued at $4,025,000 after buying an additional 86,229 shares in the last quarter. Finally, Strs Ohio acquired a new stake in Cleanspark in the 1st quarter worth approximately $38,000. 43.12% of the stock is currently owned by institutional investors.

Cleanspark Company Profile

CleanSpark, Inc NASDAQ: CLSK is a leading energy software and services company specializing in advanced microgrid controls and distributed energy resource (DER) management. The firm develops proprietary software platforms designed to optimize power flows across on-grid and off-grid installations, integrating renewable generation, battery storage, and traditional generation assets. CleanSpark's technology is used by utilities, commercial and industrial enterprises, and remote facilities seeking to enhance energy resilience, reduce operating costs, and achieve sustainability goals.

In addition to its core software offerings, CleanSpark provides end-to-end engineering, procurement and construction (EPC) services.

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