CleanSpark (CLSK) Is Down 11.9% After Announcing Major Texas AI Data Center Expansion—Has The Bull Case Changed?

• In late October 2025, CleanSpark acquired rights to around 271 acres in Austin County, Texas, secured long-term power agreements totaling 285 megawatts, and announced immediate development of a next-generation data center campus focused on AI and high-performance computing workloads.
• This expansion marks a shift from CleanSpark's traditional bitcoin mining focus, highlighting its aim to tap the rapidly growing demand for AI infrastructure by leveraging energy-advantaged locations and new technology partnerships.
• We'll consider how CleanSpark's entry into AI data centers, anchored by its Texas expansion, could reshape the company's future investment appeal.

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CleanSpark Investment Narrative Recap

The core thesis for CleanSpark centers on its ability to diversify beyond Bitcoin mining into high-demand infrastructure for AI and high-performance computing, using its track record in energy-advantaged regions. The recent Texas expansion is a long-term move toward operational diversification, but does not materially shift the company’s current short-term exposure to Bitcoin price cycles, which remain the main catalyst, and risk, for near-term financial performance. Investors watching for consistent revenue outside of crypto will need to weigh these evolving dynamics.

Of the latest announcements, CleanSpark’s partnership with Submer stands out for its relevance to the Texas project. By integrating advanced liquid-cooled, modular data center technology, this collaboration could enable more rapid and cost-efficient rollout of AI-focused campuses, potentially supporting CleanSpark’s ambition to capture new revenue streams and offset volatility in Bitcoin mining margins.

However, while these developments point to diversification, investors should be aware that, in contrast to this positive momentum, CleanSpark’s sustained reliance on Bitcoin prices and miner rewards could still...

Read the full narrative on CleanSpark (it's free!)

CleanSpark's outlook anticipates $1.5 billion in revenue and $319.0 million in earnings by 2028. This is based on an expected revenue growth rate of 32.5% per year and a $26.5 million increase in earnings from the current $292.5 million.

Uncover how CleanSpark's forecasts yield a $22.34 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Twenty members of the Simply Wall St Community estimate CleanSpark’s fair value from as low as US$5.18 to US$40. With short-term results still tied to Bitcoin cycles, now is the time to explore these different viewpoints.

Explore 20 other fair value estimates on CleanSpark - why the stock might be worth less than half the current price!

Build Your Own CleanSpark Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free CleanSpark research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CleanSpark's overall financial health at a glance.

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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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