A Fresh Look at CleanSpark’s Valuation Following Major Texas AI Data Center Expansion and Strategic Shift

CleanSpark, Inc. has taken a bold step toward diversifying its business by acquiring 271 acres in Texas and securing 285 megawatts of power to build an advanced data center campus for AI and high-performance computing.

See our latest analysis for CleanSpark.

CleanSpark’s bold leap into AI infrastructure, fresh off securing a partnership with Submer and a major Texas land deal, has caught the market’s attention. With momentum building, the stock’s 75% year-to-date share price gain and 27.6% total return over the past year reflect growing optimism about its shift beyond bitcoin mining and its continued growth runway.

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With analysts raising price targets and the company’s strategic pivot fueling optimism, the key question now is whether CleanSpark’s stock still offers value for new investors, or if the current excitement already reflects its future growth.

Most Popular Narrative: 31% Undervalued

With the most widely followed narrative calling for a fair value of $24.07, CleanSpark’s last close at $16.58 gives bulls plenty to chew on, especially after the company’s high-profile expansion moves. The valuation reflects strong confidence in a transformation beyond mining. Now here’s what’s fueling that optimism.

The expansion of high-performance computing alongside Bitcoin mining is identified as a transformative opportunity for CleanSpark. Several bullish updates are based on CleanSpark’s potential to replicate past operational success in new markets.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? This popular narrative hints at game-changing revenue and margin assumptions, plus a projected profit multiple rarely seen outside of tech titans. Keen to see which future milestones and financial targets are baked in? Explore the full story to see what numbers are driving this price target.

Result: Fair Value of $24.07 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still risks, particularly if Bitcoin prices drop or if CleanSpark’s diversification into data centers does not deliver tangible near-term results.

Find out about the key risks to this CleanSpark narrative.

Another View: Discounted Cash Flow Shows Overvaluation

While analyst optimism points to CleanSpark as undervalued, our DCF model suggests a more cautious outlook. It estimates CleanSpark's fair value at just $5.28 per share. This means the current price is well above what our cash flow-driven approach considers reasonable. How do you reconcile these sharply different signals?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CleanSpark for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 845 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own CleanSpark Narrative

If you're not convinced by these forecasts or want to dig into the numbers yourself, you can quickly craft your own CleanSpark valuation in just a few minutes. Do it your way

A great starting point for your CleanSpark research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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