CleanSpark (CLSK) Is Down 14.3% After Bitcoin And AI Infrastructure Rally - Has The Bull Case Changed?

• Earlier this week, shares of crypto-exposed companies rallied after bitcoin moved past US$90,000, lifting sentiment across miners and trading platforms, including CleanSpark.
• The surge followed Hut 8’s 15-year, very large Fluidstack AI infrastructure deal and Coinbase’s push into tokenized assets and onchain AI tools, underscoring how AI-linked demand is reshaping investor interest in digital-asset infrastructure.
• We’ll now examine how bitcoin’s renewed momentum and AI-driven infrastructure demand interact with CleanSpark’s existing investment narrative and risk profile.

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CleanSpark Investment Narrative Recap

To own CleanSpark, you need to believe Bitcoin will remain valuable enough, for long enough, to support efficient miners with scale, low power costs, and access to capital. This week’s bitcoin move above US$90,000 lifts sentiment and could support near term revenue and cash flow expectations, but it also sharpens the key risk that profitability is still tightly bound to volatile bitcoin pricing and future block rewards.

Against that backdrop, CleanSpark’s November decision to complete a roughly US$460,000,000 buyback of about 10.9% of its shares stands out. Coming on the heels of a profitable year with US$766,310,000 in revenue and US$364,460,000 in net income, that capital return now sits beside new AI infrastructure interest in the sector as investors weigh bitcoin driven upside against mining concentration risk.

But while bitcoin’s surge is front of mind, investors should also be aware that CleanSpark’s dependence on future block rewards and transaction fees means...

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

CleanSpark's narrative projects $1.5 billion revenue and $319.0 million earnings by 2028. This requires 32.5% yearly revenue growth and about a $26.5 million earnings increase from $292.5 million today.

Uncover how CleanSpark's forecasts yield a $23.16 fair value, a 93% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 19 Simply Wall St Community members span roughly US$5.15 to US$29.26, underlining how far apart views on CleanSpark’s upside really are. Set against that spread, the shared reliance of any thesis on sustained Bitcoin economics, halving dynamics and mining margins is a reminder to compare several viewpoints before deciding how this fits in your portfolio.

Explore 19 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 4 key rewards and 4 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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