CleanSpark, Inc. (NASDAQ:CLSK) Is About To Turn The Corner

We feel now is a pretty good time to analyse CleanSpark, Inc.'s (NASDAQ:CLSK) business as it appears the company may be on the cusp of a considerable accomplishment. CleanSpark, Inc. operates as a bitcoin miner in the Americas. With the latest financial year loss of US$132m and a trailing-twelve-month loss of US$156m, the US$2.7b market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which CleanSpark will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for CleanSpark

Consensus from 6 of the American Software analysts is that CleanSpark is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$126m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 36% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving CleanSpark's growth isn’t the focus of this broad overview, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.8% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on CleanSpark, so if you are interested in understanding the company at a deeper level, take a look at CleanSpark's company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:

1. Valuation: What is CleanSpark worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether CleanSpark is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CleanSpark’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.