Cleanspark (NASDAQ:CLSK) Trading Up 7.2% - Should You Buy?

Key Points

• CleanSpark shares rose 7.2% to about $14.31, supported by broader strength among Bitcoin miners and news that Meta will be the tenant for its Sandersville, Georgia, AI data-center campus.
• The company plans to raise $2.227 billion through senior secured notes to fund the campus buildout, accelerating its shift toward AI infrastructure but adding significant debt, interest obligations, and execution risk.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $23.88; however, CleanSpark recently missed quarterly earnings and revenue estimates, with revenue down 30.5% year over year.

Shares of Cleanspark, Inc. (NASDAQ:CLSK - Get Free Report) traded up 7.2% on Friday . The stock traded as high as $14.23 and last traded at $14.3120. Approximately 14,135,475 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 22,779,098 shares. The stock had previously closed at $13.35.

Key Stories Impacting Cleanspark

Here are the key news stories impacting Cleanspark this week:

• Positive Sentiment: Meta identified as Georgia data-center tenant: CleanSpark disclosed that Meta is the tenant for its Sandersville, Georgia, AI data-center campus. The announcement provides potential customer validation and suggests a path toward diversifying beyond Bitcoin mining into higher-growth data-center services. CleanSpark Reveals Meta as Georgia Data Center Tenant
• Positive Sentiment: $2.227 billion financing plan: CleanSpark’s wholly owned subsidiary, CSDC Finance I, plans to offer $2.227 billion of senior secured notes due in 2031 through a private placement. Proceeds are expected to fund the buildout of the Georgia data-center campus, accelerating the company’s AI infrastructure strategy. The offering remains subject to market conditions and other factors. CleanSpark Announces Proposed Offering of Senior Secured Notes
• Positive Sentiment: Favorable cryptocurrency-miner sentiment: Shares of Bitcoin-mining companies, including CleanSpark, were outperforming Bitcoin during the reported session. This broader sector momentum likely added support to CLSK alongside the data-center announcements. CleanSpark Climbs as Bitcoin Miners Outrun Bitcoin
• Negative Sentiment: Significant financing and execution risk: The planned notes would add substantial secured debt, increasing leverage and future interest obligations. Investors will also assess the final pricing and terms, construction costs, timing, and whether the Meta-related campus generates the expected returns.

Analyst Upgrades and Downgrades

CLSK has been the subject of a number of recent analyst reports. Weiss Ratings upgraded Cleanspark from a "sell (d-)" rating to a "sell (d)" rating in a research note on Tuesday, August 11th. Cantor Fitzgerald reissued an "overweight" rating and set a $26.00 price objective on shares of Cleanspark in a report on Friday, August 7th. BTIG Research reissued a "buy" rating and issued a $26.00 target price on shares of Cleanspark in a research report on Tuesday, July 14th. HC Wainwright reaffirmed a "buy" rating on shares of Cleanspark in a research report on Friday, August 7th. Finally, Citigroup initiated coverage on Cleanspark in a report on Wednesday, June 24th. They issued an "outperform" rating for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Cleanspark has a consensus rating of "Moderate Buy" and an average target price of $23.88.

Cleanspark Stock Up 7.9%

The firm has a market cap of $3.70 billion, a price-to-earnings ratio of -3.79 and a beta of 3.84. The stock has a 50-day moving average of $12.94 and a 200-day moving average of $12.97. The company has a current ratio of 5.91, a quick ratio of 2.11 and a debt-to-equity ratio of 2.34.

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

Insider Buying and Selling

In other Cleanspark news, COO Taylor Monnig sold 25,249 shares of Cleanspark stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $13.34, for a total transaction of $336,821.66. Following the sale, the chief operating officer owned 236,114 shares of the company's stock, valued at $3,149,760.76. The trade was a 9.66% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last 90 days, insiders sold 29,816 shares of company stock valued at $394,352. 2.08% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cleanspark

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Markowski Investments bought a new position in shares of Cleanspark in the second quarter valued at $25,000. Hantz Financial Services Inc. grew its holdings in shares of Cleanspark by 174.8% in the 4th quarter. Hantz Financial Services Inc. now owns 4,804 shares of the company's stock worth $49,000 after acquiring an additional 3,056 shares during the last quarter. NewEdge Advisors LLC grew its holdings in shares of Cleanspark by 53.7% in the 2nd quarter. NewEdge Advisors LLC now owns 5,215 shares of the company's stock worth $76,000 after acquiring an additional 1,822 shares during the last quarter. CoreCap Advisors LLC raised its position in shares of Cleanspark by 16.8% during the second quarter. CoreCap Advisors LLC now owns 5,565 shares of the company's stock worth $81,000 after purchasing an additional 800 shares during the period. Finally, Nykredit A S purchased a new stake in shares of Cleanspark during the second quarter valued at $83,000. 43.12% of the stock is owned by institutional investors and hedge funds.

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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