CleanSpark
CLSK
$16.78
-4.71%
CleanSpark Inc. is a data center developer that has historically focused on Bitcoin mining, providing scalable and energy-efficient digital infrastructure across the United States. The company operates as a niche player within the high-energy computing sector, leveraging its expertise in power management and data center operations. The current investor narrative is dominated by its strategic pivot from pure-play Bitcoin mining towards AI data center development, a move highlighted in recent news, which is driving debate over its growth prospects and ability to execute this transition amidst significant quarterly losses and revenue misses.…
CLSK
CleanSpark
$16.78
Related headlines
CLSK 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on CleanSpark's 12-month outlook, with a consensus price target around $21.81 and implied upside of +30.0% versus the current price.
Average Target
$21.81
1 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
1
covering this stock
Price Range
$13 - $22
Analyst target range
Analyst coverage appears limited with only one firm providing estimates for revenue and EPS, indicating this is a stock with lower institutional following, which can lead to higher volatility and less efficient price discovery. The single analyst's revenue estimate for the coming period averages $1.417 billion, with a wide range from $1.201 billion to $1.663 billion, highlighting significant uncertainty around the company's future performance, particularly as it navigates its pivot and addresses recent financial setbacks. Recent institutional ratings from firms like B. Riley, Macquarie, and Needham consistently show 'Buy' or 'Outperform' actions, but these were issued prior to the Q1 2026 earnings miss, and the lack of new ratings since the May 12th news of a 'significant quarterly loss' suggests analysts may be reassessing their positions.
Bulls vs Bears: CLSK Investment Factors
The evidence presents a starkly bifurcated picture. Bullish momentum is undeniable, driven by a compelling strategic pivot narrative and a technically powerful recovery. However, the bear case is grounded in severe, quantifiable fundamental weaknesses: catastrophic quarterly losses, massive cash burn, and extreme earnings volatility. Currently, the bear side holds stronger evidence due to the concrete financial deterioration in the most recent quarter, which overshadows the forward-looking narrative. The single most important tension in the investment debate is whether the company's strategic pivot to AI data centers can be executed profitably before its cash reserves are depleted, given its current burn rate of over -$1 billion on a TTM basis.
Bullish
- Explosive Technical Momentum: The stock has surged 108.31% over the past year and 83.82% over the past three months, dramatically outperforming the S&P 500. This powerful recovery from the 52-week low of $8.00 to the current $18.29 suggests strong market conviction in the company's strategic pivot.
- Strong Balance Sheet & Liquidity: The company maintains a robust current ratio of 4.18 and a manageable debt-to-equity ratio of 0.38. This financial stability provides a crucial buffer to fund its transition from Bitcoin mining to AI data center development.
- Analyst Consensus Remains Positive: Despite recent volatility, institutional ratings from firms like B. Riley, Macquarie, and Needham are consistently 'Buy' or 'Outperform'. A single analyst's revenue estimate for the coming period averages $1.42 billion, implying significant growth expectations.
- Attractive Trailing P/E Ratio: With a trailing P/E of 11.23, the stock appears inexpensive relative to its own historical range (which has swung as high as 20.86). This valuation is near the middle of its erratic range, suggesting the market has not fully priced in a successful pivot.
Bearish
- Severe Profitability & Cash Burn: Q1 2026 saw a massive net loss of -$378.71 million and negative operating cash flow of -$161.14 million. Trailing twelve-month free cash flow is deeply negative at -$1.045 billion, indicating a heavy dependence on external financing to sustain operations.
- Extreme Revenue & Earnings Volatility: Revenue growth decelerated sharply to 11.63% YoY in Q1 2026 from much higher prior periods. Net income swung from +$257.39 million in Q3 2025 to -$378.71 million in Q1 2026, demonstrating a business model highly sensitive to Bitcoin prices and operational leverage.
- High Short Interest & Speculative Risk: A short ratio of 4.1 indicates significant bearish sentiment and skepticism about the company's fundamentals. Combined with a beta of 3.72 (272% more volatile than the market), this creates a recipe for extreme price swings and potential short squeezes.
- Valuation Premiums & Negative Forward P/E: The stock trades at a Price-to-Sales ratio of 5.34 and an EV-to-Sales of 8.36, which are likely premiums to traditional software firms. The forward P/E is deeply negative at -35.63, reflecting analyst expectations for continued losses.
CLSK Technical Analysis
The stock is in a powerful recovery trend, having surged 108.31% over the past year, but it is currently trading at approximately 77.5% of its 52-week range (between $8.00 and $23.61), indicating it has regained significant ground from its lows but remains below its peak. Recent momentum is exceptionally strong, with the stock up 60.86% over the past month and 83.82% over the past three months, far outpacing the S&P 500's gains of 6.31% and 10.28% respectively, signaling a sharp acceleration and potential speculative fervor. Key technical levels are the 52-week low of $8.00, which now serves as major support, and the 52-week high of $23.61, which is the next significant resistance; a breakout above $23.61 would confirm a new bullish phase, while a breakdown below $8.00 would invalidate the recovery. The stock's extreme volatility is underscored by its beta of 3.72, meaning it is approximately 272% more volatile than the broader market, which necessitates careful risk management for investors.
Beta
3.72
3.72x market volatility
Max Drawdown
-64.7%
Largest decline past year
52-Week Range
$8-$24
Price range past year
Annual Return
+76.1%
Cumulative gain past year
| Period | CLSK Return | S&P 500 |
|---|---|---|
| 1m | +25.1% | +4.6% |
| 3m | +82.2% | +12.6% |
| 6m | +22.3% | +10.4% |
| 1y | +76.1% | +27.0% |
| ytd | +45.3% | +11.0% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
CLSK Fundamental Analysis
Revenue growth is volatile and recently disappointing, with Q1 2026 revenue of $181.18 million representing only an 11.63% year-over-year increase, a significant deceleration from the explosive growth seen in prior quarters like Q3 2025 where revenue was $198.64 million. The company's profitability is deeply inconsistent, swinging from a net income of $257.39 million in Q3 2025 to a substantial loss of -$378.71 million in the most recent Q1 2026, with gross margins also fluctuating wildly from 34.10% to 52.99% across recent quarters, indicating a business model highly sensitive to Bitcoin prices and operational costs. The balance sheet shows a strong current ratio of 4.18 and a manageable debt-to-equity ratio of 0.38, suggesting adequate liquidity and moderate leverage, but cash flow is a major concern with trailing twelve-month free cash flow deeply negative at -$1.045 billion and quarterly operating cash flow of -$161.14 million in Q1 2026, revealing a heavy dependence on external financing to fund operations and growth initiatives.
Quarterly Revenue
$181180000.0B
2025-12
Revenue YoY Growth
+0.11%
YoY Comparison
Gross Margin
+0.34%
Latest Quarter
Free Cash Flow
$-1.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Open an Account, get $2 TSLA now!
Valuation Analysis: Is CLSK Overvalued?
Given the company's inconsistent profitability, with a recent quarterly net loss of -$378.71 million but a trailing twelve-month EPS of $0.089, the trailing P/E ratio of 11.23 is the primary metric, though it is not fully reflective of core earnings power due to the volatile income stream. Compared to sector averages, CleanSpark's valuation is difficult to pin down due to its unique business model; however, its Price-to-Sales ratio of 5.34 and EV-to-Sales of 8.36 are likely at a premium to traditional software companies but may be discounted relative to other Bitcoin miners, reflecting the high-risk, high-reward nature of the industry. Historically, the stock's own trailing P/E has swung from deeply negative values to as high as 20.86, placing the current 11.23 near the middle of its erratic range, suggesting the market is currently pricing in a cautious outlook that balances its growth potential against severe profitability challenges.
PE
11.2x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -1114x~21x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
6.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks are severe and center on cash burn and profitability. The company reported a Q1 2026 net loss of -$378.71 million and TTM free cash flow of -$1.045 billion, indicating a business that cannot self-fund its operations or ambitious pivot. Gross margins have fluctuated wildly from 34.1% to 52.99% in recent quarters, revealing high sensitivity to Bitcoin mining economics and operational costs. With revenue growth decelerating to 11.63% YoY, the path to profitability is unclear, and the company remains heavily dependent on external financing to stay afloat.
Market & Competitive Risks are amplified by valuation and sentiment. Trading at a P/S of 5.34 and EV/Sales of 8.36, CLSK carries premium multiples that are vulnerable to compression if growth disappoints or sector sentiment sours. The stock's beta of 3.72 means it is 272% more volatile than the market, making it highly sensitive to broader risk-off moves. High short interest (short ratio 4.1) creates a volatile feedback loop, where negative news can trigger sharp sell-offs, but also sets the stage for explosive short squeezes that further distort price discovery.
The Worst-Case Scenario involves a failure of the AI pivot execution combined with a sustained downturn in Bitcoin prices. This could lead to a liquidity crisis as cash burn continues, forcing dilutive equity raises or debt restructuring. A chain of missed revenue targets, continued losses, and analyst downgrades could trigger a rapid de-rating. The realistic downside is significant; a return to the 52-week low of $8.00 from the current price of $18.29 represents a potential loss of -56%. Given the stock's history of a -64.74% max drawdown, a decline of this magnitude is within the realm of historical precedent during periods of operational stress.