CLSK Stock Overview
CleanSpark, Inc. provides bitcoin mining and energy technology solutions worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$3.40|
|52 Week High||US$23.60|
|52 Week Low||US$3.00|
|1 Month Change||-19.62%|
|3 Month Change||-13.27%|
|1 Year Change||-70.71%|
|3 Year Change||-58.79%|
|5 Year Change||-87.86%|
|Change since IPO||30.77%|
Recent News & Updates
Be Ready To Add CleanSpark When Fed Signals Pivot
Summary Of the eight largest, listed and producing Bitcoin miners, CleanSpark is the best value from a market cap to hash rate share perspective. CleanSpark is enabling growth in its total network hash rate share through recent power supply acquisitions in Georgia, including 230 MW of capacity in Sandersville. CleanSpark has purchased some Bitmain S19 XPs, but is generally looking to acquire earlier models from the S19 Series on the spot market at depressed prices. CleanSpark has been punished for its relatively low level of retained crypto assets. This discounting is somewhat arbitrary as they also have a low level of carried debt with only $34 million in total liabilities. A recent executive branch report prepared for the White House suggested the possibility to "eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining." When doing any ground level miner comparisons, CleanSpark (CLSK) immediately jumps out for its high level of production relative to its market capitalization. Of the eight largest and producing, Nasdaq listed Bitcoin (BTC-USD) miners, CleanSpark is solidly in fourth in deployed, operational and producing hash rate. However, among these peers it is last in market capitalization, primary because it is punished for having the lowest level of retained digital assets on its balance sheet. On Tuesday, the company announced that it has now surpassed 4 EH/s of hash rate, a 30% increase in less than one month. Hash rate is the measure of computational capacity a miner applies to a crypto-network, such as Bitcoin, that uses a proof-of-work consensus mechanism to secure its platform. Put simply, miners are rewarded a share of a set amount of Bitcoins depending on the percentage of the total network hash rate they are able to supply. Bitcoin's total network hash rate averaged about 225 EH/s over the past month. So in round terms, CleanSpark with its 4 EH/s has about a 1.75% share and should be producing over 15 Bitcoins per day. hiveblockchain.com Going under the hood beyond the low level of Bitcoin holdings, CleanSpark is relatively strong in a few key areas. The company has a competitive cost structure, a strong capital expense strategy and a regulatory moat provided by its renewable energy focus. The article below considers these operational strengths and their adjacent risks. It tries to answer if CleanSpark should be on the watchlist of miners to receive increased allocations if inflation subsides and the Federal Reserve pivots to a less hawkish stance. CleanSpark's Power Focused Growth Strategy But our peers have shown that sometimes the number of machines you have, it doesn't matter unless you have a plug to plug it in. So we are going a plug first approach on our infrastructure and we are very confident that the spot market will serve us well. CEO Zach Bradford, Fiscal Q3 2022 Results - Earnings Call, 8/9/2022 CleanSpark is enabling growth in their total network hash rate share through power supply acquisitions in Georgia. The company's now reiterated guidance from August is for about 5 EH/s of hashing capacity by year-end. And this likely does not include another 1.4 EH/s from the latest acquisition of a facility in Sandersville. So, CleanSpark is basically doubling its capacity from the end of the second calendar quarter, a time from which the total network growth has somewhat flattened. And importantly, the growth trajectory steepens in 2023 with a notable increase through hosting with Lancium in Texas. seekingalpha.com As additional power capacity at the new facilities comes online, CleanSpark primarily plans to equip the locations through the spot market, which now has significantly depressed pricing. This is possible because the fall in Bitcoin prices has caused price protections to kick in on some of the company's rig contracts and the remaining commitments in this area are a relatively minimal $2 million. Not having a high quantity of higher priced and less priced protected equipment contracts is a tactical advantage CleanSpark has over a number of the peers. Mining Equipment Strategy CleanSpark has recently purchased some high-end MicroBT equipment and some high-end Bitmain S19 XPs, but generally is looking to acquire earlier models from the S19 Series. These earlier models have a stronger ROI and are efficient, though it should be noted they are less efficient than the XPs. The XPs would perform well in a lower Bitcoin price environment and will possibly have a determinative advantage post the next halving in 2024. However, for now ROI is making the decision, as explained by Bradford: ...the XPs being delivered from Bitmain... its $50 a terahash for their August delivery... So to put that in perspective, the XPs are about 33% more efficient in output. They currently are costing about 100% more than an S19J Pro on the spot market. So for us, we measure that delta. So we are very interested in acquiring XPs, but we will always measure the return on investments on that machine. CEO Zach Bradford, Fiscal Q3 2022 Results - Earnings Call, 8/9/2022 (link above) No Substantial HODL Strategy As mentioned above, CleanSpark is low debt but also has a relatively low amount of digital currency holdings compared to peers. At the end of the calendar second quarter, CleanSpark had total liabilities of about $34 million and just over $10 million in digital assets. This compares to Marathon Digital (MARA) at the other end of the spectrum, with about $850 million in liabilities and $200 million in digital assets. From my perspective, some crypto investors may be overvaluing the crypto holdings of the miners. These holdings are often looked on as more of an earning asset because of expected price appreciation, or at least in a vacuum relative to debt. Allocation to miners should be because their earnings are naturally leveraged to underlying prices of the digital currencies, and should be held for that reason, not for the direct currency holdings. This is especially true if the perception of "large" holdings means one is paying a premium for the actual exposure or discounting the associated debt carried. It is also unnatural to use no current income to fund current operations and solely rely on share and debt issuance for all expenses. For a summary, consider Bradford's added color during the last earnings call: While this summer, the industry was rocked by headlines of public miners liquidating their Bitcoin holdings, we were able to stay true to our long-held course of selling a portion of our Bitcoin to fund our growth in operations, which we have done since the early days of 2021. CEO Zach Bradford, Fiscal Q3 2022 Results - Earnings Call, 8/9/2022 (link above) CleanSpark Costs Per Mined Bitcoin The chart below compares costs per mined Bitcoin for CleanSpark, Bitfarms (BITF) and HIVE (HIVE). The data is from the second calendar quarter and has been adjusted to remove non-cash costs. These comparisons were chosen because all three have high efficiency operations with similar scales. Note Bitfarms is my top pick among the large, western miners, but I have a sell rating on HIVE because of the large exposure to The Merge on Ethereum. Adjusted Operating Costs/Coin Adjusted Costs & Expenses/Coin CleanSpark $10,700 $16,800 Bitfarms $11,500 $17,400 HIVE $12,600 $15,000
CleanSpark: The Current Bitcoin Environment And Company Updates
Summary How to understand the current Bitcoin environment and how it's changed from several years ago. Bitcoin is still in the early stages of adoption, and will remain volatile for the foreseeable future. How this will impact CleanSpark in light of changes in the company over the last couple of months. Over the last year CleanSpark (CLSK) has taken a beating, dropping from a 52-week high of $23.60, to a 52-week low of $3.75. All of this is in response to the plunge in the price of Bitcoin (BTC-USD), which is based upon the weak economic conditions that have plagued the markets. This is especially true of high-growth assets that Bitcoin has now been lumped together with by relatively new investors in the sector, which base their investment strategies on the movement of interest rates that have of course been rising lately, resulting in them lowering their estimates on future cash flows. Consequently, this has driven the share price of CleanSpark and its peers down in conjunction with the price movement of Bitcoin, bringing about what I believe is temporal but significant decrease in its share price. In this article we'll take a look at how new investors are trading Bitcoin and the Bitcoin miners, and some of the steps CleanSpark has recently taken to position itself for the inevitable rebound in the price of Bitcoin. How Bitcoin is being valued and traded The first thing to understand about current Bitcoin investors is there are now two different types. There were the early adopters that continue to HODL Bitcoin, and the newer players, represented by wealthy individuals, large financial institutions and hedge funds. Why this matters is early adopters still view Bitcoin as a store of value, while institutional investors consider Bitcoin a high-growth asset, and trade it accordingly. That means those that HODL, for the most part, don't sell their positions, while traditional investors trade it in a similar way they trade tech stocks. Bitcoin miners like CLSK, on the other hand, can embrace both mindsets. Some miners continue to hold their Bitcoin, while others sell some to raise operating capital. Institutional and high-wealth traders have been trading Bitcoin based upon rising interest rates. And since they view Bitcoin in the same way they view high-growth stocks, they use what is called a discounted cash flow, or DCF, model to analyze and project probable future prices. Essentially that means as interest rates rise they downwardly revise future cash flows. Just like stocks, Bitcoin is repriced in relationship to interest rate increases. The result of that is traditional investors have been selling Bitcoin for the same reasons they sell tech stocks. I see some early adopters of Bitcoin argue that this is the wrong way to view and trade Bitcoin, and I agree with them. Nonetheless, it doesn't matter. That is how Bitcoin is being traded, and it has to be understood that way by those of us that think it's the wrong way to trade it. This may appear negative, but in reality, this provides a good opportunity to take positions, not only in Bitcoin, but Bitcoin miners like CLSK, which, when the price of Bitcoin inevitably rebounds, are going to be strong beneficiaries of that move. With that in mind, let's look at some of the recent updates associated with CLSK. Recent updates In early September 2022, CLSK acquired 10,000 more Bitmain Antminer S19j Pro mining machines at a price of $28 million, after discounts and credits were applied. CLSK expects to take delivery of the units in the latter part of October or early November 2022. The total number of Bitcoin mining machines CLSK has surpasses 40,000, producing about 14.9 BTC daily and a hashrate of 3.8 EH/s. The company reported in early September that it mined 395 Bitcoin in August. CleanSpark also announced it has entered into a deal to acquire Mawson's Sandersville site for $33 million. The deal is projected to boost the company's hashrate by 1.4 EH/s by the end of 2022; 2.4 EH/s in the early part of 2023, and an additional 7.0 EH/s by the end of 2023. Assuming the company is successful in its projections, it would help bring the total EH/s to over 22 by the end of 2023. That would also catapult it to among the market leaders in EH/s, based upon the visibility we have today. As I write the Sandersville site has the capability of supporting up to 24,108 miners. After the completion of the expansion, it will support 70,000 miners. That's where the 7.0 increase in EH/s will come from near the end of 2023. CleanSpark said it is also acquiring 6,468 mining ASICs from Mawson for $9.5 million, in an all-cash deal. Combined, the two acquisitions will cost $42.5 million. For those that may have missed it, CLSK announced in August that it was selling it energy business assets, a good move in my opinion. One last update I wanted to include was in regard to Price/Sales. On a TTM basis, it was most recently as 1.29, while on a FWD basis, it was 1.52. These aren't great numbers, but they're not bad, especially in the current economic environment the company is operating in. Conclusion In the past, I've mentioned that CLSK had no discernable competitive advantage over its peers, and could be at a disadvantage because of rising costs and potential shrinkage of its margins. From that time the company has made some significant changes, and if it is able to execute on its plan over the next eighteen months or so, it could propel itself near the top of the Bitcoin mining heap, depending on the moves its peers make.
CleanSpark acquires 10K more bitcoin mining machines for $28M
Bitcoin (BTC-USD) miner CleanSpark (NASDAQ:CLSK) on Wednesday has agreed to buy 10K more Bitmain Antminer S19j Pro mining rigs for $28.0M, after credits and discounts. The servers, which were purchased from hardware broker Cryptech Solutions, are expected to be delivered to CleanSpark's (CLSK) facilities by late October or early November, it said. The company bought the 10K units for approximately $28.00 per terahash, a steep discount when compared with $96/Th as quoted on Bitmain's website. "During the tail end of the bull market last year, we strategically focused on building infrastructure instead of following the then industry trend of pre-ordering equipment months in advance” in a move that prompted rig purchases at "significantly lower prices," said CleanSpark CEO Zach Bradford. CleanSpark (CLSK) now has over 40K operational bitcoin (BTC-USD) mining machines with a daily production of 14.9 BTC and a hashrate of 3.8 exahashes per second. Previously, (Sep. 2) CleanSpark mined 395 BTC in August.
CleanSpark to acquire active bitcoin mining site in Washington, Georgia
CleanSpark (NASDAQ:CLSK) has agreed to acquire an active bitcoin mining facility in Washington, Georgia from Waha Technologies for $16.2M. The transaction is expected to close within the next 30 days. The facility is CleanSpark’s third clean-energy campus in Georgia, with other locations in College Park and Norcross. The deal covers the acquisition of ~3,400 of the latest generation Antminer S19 series of machines for approximately $8.9M. These machines, already operating at the acquired site, will add over 340 PH/s of computing power. CleanSpark (CLSK) plans to fill the balance of the 36MW with machines already paid for and on hand. The facility has exclusive rights to an additional 50MW of power, making it scalable to 86MW. CLSK shares are down over 3% pre-market The bitcoin miner is scheduled to report Q3 results after market close today.
|CLSK||US Software||US Market|
Return vs Industry: CLSK underperformed the US Software industry which returned -31.6% over the past year.
Return vs Market: CLSK underperformed the US Market which returned -22.1% over the past year.
|CLSK Average Weekly Movement||14.5%|
|Software Industry Average Movement||8.9%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
Stable Share Price: CLSK is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.
Volatility Over Time: CLSK's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
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.
CleanSpark Fundamentals Summary
|CLSK fundamental statistics|
Is CLSK overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CLSK income statement (TTM)|
|Cost of Revenue||US$36.41m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.25|
|Net Profit Margin||-8.44%|
How did CLSK perform over the long term?See historical performance and comparison
Is CLSK undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CLSK?
Other financial metrics that can be useful for relative valuation.
|What is CLSK's n/a Ratio?|
Price to Sales Ratio vs Peers
How does CLSK's PS Ratio compare to its peers?
|CLSK PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
IREN Iris Energy
BTBT Bit Digital
DTSR.F Ether Capital
BTCM BIT Mining
Price-To-Sales vs Peers: CLSK is good value based on its Price-To-Sales Ratio (1.2x) compared to the peer average (9.6x).
Price to Earnings Ratio vs Industry
How does CLSK's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Sales vs Industry: CLSK is good value based on its Price-To-Sales Ratio (1.2x) compared to the US Software industry average (4.2x)
Price to Sales Ratio vs Fair Ratio
What is CLSK's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||1.2x|
|Fair PS Ratio||6.7x|
Price-To-Sales vs Fair Ratio: CLSK is good value based on its Price-To-Sales Ratio (1.2x) compared to the estimated Fair Price-To-Sales Ratio (6.7x).
Share Price vs Fair Value
What is the Fair Price of CLSK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: Insufficient data to calculate CLSK's fair value for valuation analysis.
Significantly Below Fair Value: Insufficient data to calculate CLSK's fair value for valuation analysis.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is CleanSpark forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CLSK is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: CLSK is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: CLSK is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: CLSK's revenue (37.2% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: CLSK's revenue (37.2% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CLSK's Return on Equity is forecast to be high in 3 years time
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How has CleanSpark performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CLSK is currently unprofitable.
Growing Profit Margin: CLSK is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: CLSK is unprofitable, but has reduced losses over the past 5 years at a rate of 9.6% per year.
Accelerating Growth: Unable to compare CLSK's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: CLSK is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (16.5%).
Return on Equity
High ROE: CLSK has a negative Return on Equity (-2.99%), as it is currently unprofitable.
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How is CleanSpark's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: CLSK's short term assets ($29.4M) exceed its short term liabilities ($20.0M).
Long Term Liabilities: CLSK's short term assets ($29.4M) exceed its long term liabilities ($14.2M).
Debt to Equity History and Analysis
Debt Level: CLSK's net debt to equity ratio (3.9%) is considered satisfactory.
Reducing Debt: CLSK's debt to equity ratio has increased from 0.06% to 4.9% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CLSK has less than a year of cash runway based on its current free cash flow.
Forecast Cash Runway: CLSK has less than a year of cash runway if free cash flow continues to reduce at historical rates of 74% each year
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What is CleanSpark current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Dividend Yield vs Market
|CleanSpark Dividend Yield vs Market|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.6%|
|Industry Average (Software)||1.1%|
|Analyst forecast in 3 Years (CleanSpark)||n/a|
Notable Dividend: Unable to evaluate CLSK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CLSK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CLSK's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CLSK's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as CLSK has not reported any payouts.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Zach Bradford (36 yo)
Mr. Zachary K. Bradford, also known as Zach, serves as President and Director of CleanSpark, Inc. since December 29, 2016 and March 6, 2014 respectively. He also serves as the Chief Executive Officer of Cl...
CEO Compensation Analysis
|Zach Bradford's Compensation vs CleanSpark Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||US$15m||US$500k|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||US$2m||US$335k|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||n/a||n/a|
|Sep 30 2019||US$430k||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||n/a||n/a|
|Dec 31 2018||n/a||n/a|
|Sep 30 2018||US$195k||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||n/a||n/a|
|Dec 31 2017||n/a||n/a|
|Sep 30 2017||US$194k||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||n/a||n/a|
|Dec 31 2016||n/a||n/a|
|Sep 30 2016||US$528k||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||n/a||n/a|
|Dec 31 2015||n/a||n/a|
|Sep 30 2015||US$583k||n/a|
Compensation vs Market: Zach's total compensation ($USD15.10M) is above average for companies of similar size in the US market ($USD1.69M).
Compensation vs Earnings: Zach's compensation has increased whilst the company is unprofitable.
Experienced Management: CLSK's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: CLSK's board of directors are considered experienced (7.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|17 Feb 22||BuyUS$45,100||Gary Vecchiarelli||Individual||4,400||US$10.25|
|16 Feb 22||BuyUS$37,531||Gary Vecchiarelli||Individual||3,357||US$11.18|
|14 Feb 22||BuyUS$130,500||Thomas Wood||Individual||15,000||US$8.70|
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
CleanSpark, Inc.'s employee growth, exchange listings and data sources
- Name: CleanSpark, Inc.
- Ticker: CLSK
- Exchange: NasdaqCM
- Founded: 1987
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$160.126m
- Shares outstanding: 47.10m
- Website: https://www.cleanspark.com
Number of Employees
- CleanSpark, Inc.
- 2370 Corporate Circle
- Suite 160
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CLSK||NasdaqCM (Nasdaq Capital Market)||Yes||Common Shares||US||USD||Apr 2011|
|CLSK *||BMV (Bolsa Mexicana de Valores)||Yes||Common Shares||MX||MXN||Apr 2011|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/28 00:00|
|End of Day Share Price||2022/09/28 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.