CleanSpark (CLSK): Evaluating Valuation Following Strategic Expansion Into AI Data Centers and Infrastructure

CleanSpark (CLSK) has unveiled a strategic shift by appointing Jeffrey Thomas as Senior Vice President of AI Data Centers. This move signals its expansion beyond bitcoin mining into the AI and high-performance computing market.

See our latest analysis for CleanSpark.

Momentum has been intense for CleanSpark this year, especially as excitement around its AI expansion helped fuel a 22.7% share price return over the past month and a 78.4% gain year-to-date. While last week's pullback trimmed some of those short-term gains, the company still boasts an impressive 44.97% total shareholder return over the past year and a substantial 355.68% total return for shareholders since 2022. This underscores the powerful impact of recent strategic moves and renewed investor interest.

If you want to see what other technology and AI infrastructure stocks are catching investors’ attention, now’s the perfect moment to explore See the full list for free.

With shares trading about 33% below the average analyst price target and CleanSpark posting double-digit revenue growth, the pivotal question is whether current levels represent a genuine bargain or if the market has already priced in its future AI-driven growth.

Most Popular Narrative: 24.5% Undervalued

CleanSpark’s most widely followed narrative rates the stock’s fair value at $22.34, a notable premium over its last closing price of $16.86. This points to a valuation now considered strong in light of recent growth catalysts and strategic shifts.

CleanSpark's fully self-operated, scalable, and power-efficient infrastructure enables it to mine Bitcoin at a significantly lower cost than the market price. Further capacity expansion, with an additional 10 exahash and over 200 megawatts of contracted power ready for rapid deployment, is poised to drive sustained increases in Bitcoin production, improving revenue and supporting higher net margins.

Read the complete narrative.

Curious about the bold financial assumptions powering this double-digit valuation gap? Analysts are betting on an aggressive mix of cost efficiency, operational expansion, and margin resilience. Explore what numbers and strategic moves might be setting CleanSpark apart from the crowd.

Result: Fair Value of $22.34 (UNDERVALUED)

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

However, CleanSpark’s heavy dependence on Bitcoin prices and the capital-intensive nature of scaling operations could quickly challenge its optimistic growth story.

Find out about the key risks to this CleanSpark narrative.

Another View: A Multiples-Based Perspective

While the prevailing analysis suggests CleanSpark is undervalued, a comparison with its peer group using the price-to-earnings ratio tells a more cautious story. CleanSpark trades at 18x earnings, which is above the peer average of 13.9x but well below the broader US Software industry’s 35.2x. The fair ratio, based on market trends, is estimated at 26.9x. This implies there is still upside if the market aligns with this benchmark. Does the premium to peers signal confidence, or could it expose investors to risk if sector sentiment shifts?

See what the numbers say about this price — find out in our valuation breakdown.

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 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 think the story could unfold differently, take a few minutes to dive into the data, shape your own perspective, and 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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