CleanSpark
CLSK
$11.66
-9.96%
CleanSpark Inc. is a data center developer that, until recently, focused exclusively on bitcoin mining, providing scalable, energy-efficient digital infrastructure across the United States. The company operates in the cryptocurrency and digital asset management industry, with a sole reporting segment in bitcoin mining. CleanSpark is a notable player in the bitcoin mining sector, recognized for its energy-efficient operations and strategic expansion into AI data center development. The current investor narrative centers on the company's strategic pivot from bitcoin mining to AI infrastructure, highlighted by a 20-year, $6.6 billion lease with a major tech company, which has been met with both optimism and skepticism as the company navigates significant quarterly losses and revenue declines.…
CLSK
CleanSpark
$11.66
Related headlines
Investment Opinion: Should I buy CLSK Today?
Rating: Buy (speculative). The thesis is that CleanSpark's pivot to AI data centers, backed by a $6.6 billion lease, provides a credible path to revenue growth and profitability, justifying the strong buy consensus. The average analyst target of $23.81 implies 104% upside, and even the low target of $21.00 offers 80% upside, suggesting that the market is undervaluing the AI opportunity.
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CLSK 12-Month Price Forecast
The AI-driven pivot is a game-changer, but execution risks are high. The company's financials are currently weak, but the lease could transform the revenue base. I am cautiously bullish, as the potential upside outweighs the risks, but I would upgrade to a more confident stance if the company shows positive free cash flow or signs additional leases. Conversely, I would downgrade to neutral if the AI lease is delayed or revenue growth disappoints.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on CleanSpark's 12-month outlook, with a consensus price target around $23.81 and implied upside of +104.2% versus the current price.
Average Target
$23.81
0 analysts
Implied Upside
+104.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$21 - $27
Analyst target range
The target price range spans from $21.00 to $27.00, with the high target implying a 132% upside, likely assuming successful execution of the AI data center strategy and significant revenue growth. The low target of $21.00 still implies a 80% upside, suggesting that even the most bearish analyst sees substantial value. The relatively narrow spread between low and high targets (about 28.6% from the average) indicates a high level of conviction among analysts, despite the company's recent financial losses. This bullishness is supported by the recent $6.6 billion lease with a major tech company, which validates the pivot and provides a clearer revenue path, although execution risks remain.
Bulls vs Bears: CLSK Investment Factors
CleanSpark presents a high-risk, high-reward opportunity. The bull case hinges on the transformative $6.6 billion AI lease, which could redefine the company's revenue base and justify the strong buy consensus. However, the bear case is equally compelling, with massive quarterly losses, declining revenue, and negative cash flow raising doubts about execution. Currently, the evidence slightly favors the bulls given the analyst conviction and the potential upside, but the most critical tension is whether the AI pivot can generate sufficient revenue to offset the bitcoin mining decline. If the lease delivers as promised, the stock could soar; if not, the high valuation and cash burn could lead to a sharp decline. The stock's extreme volatility (beta 3.886) amplifies both scenarios, making it a speculative bet on successful execution.
Bullish
- Massive AI Lease Validates Pivot: CleanSpark secured a 20-year, $6.6 billion lease with a major tech company, providing a clear revenue path for its AI data center pivot. This contract de-risks the transition from bitcoin mining and offers long-term cash flow visibility, a key driver of the strong buy consensus.
- Analyst Targets Imply 104% Upside: With an average analyst target of $23.81 and a low target of $21.00, the stock trades at $11.66, implying at least 80% upside even in the most bearish analyst scenario. The narrow spread between low and high targets (28.6% from average) signals high conviction among the 13 analysts covering the stock.
- Forward PS Suggests Growth Expectations: The forward price-to-sales ratio of 3.97 (based on estimated revenue of $1.03 billion) is lower than the trailing PS of 5.34, indicating the market expects significant revenue growth. This growth is likely driven by the AI lease, which could transform the revenue base.
- Strong Buy Consensus from Analysts: The consensus recommendation is 'strong buy' with a mean rating of 1.31 (where 1 is strong buy), reflecting overwhelming bullishness among analysts. This is supported by the recent lease announcement and the company's strategic repositioning.
Bearish
- Significant Quarterly Losses: In Q2 2026, CleanSpark reported a net loss of $378.3 million, with EPS of -$1.52, a stark contrast to the profitable Q3 2025 (EPS of $0.90). The company's net margin was -277.4% in the latest quarter, indicating severe profitability issues.
- Revenue Declining and Volatile: Revenue fell 24.9% year-over-year to $136.4 million in Q2 2026, following a sequential drop from $181.2 million in Q1 2026. This volatility is tied to bitcoin prices and mining difficulty, making earnings unpredictable and undermining the growth narrative.
- Negative Free Cash Flow: Trailing twelve-month free cash flow is -$1.07 billion, indicating the company is burning cash at an alarming rate. This raises concerns about its ability to fund the AI pivot without further dilution or debt, especially given the capital-intensive nature of data centers.
- High Valuation on Trailing Metrics: The trailing PS ratio of 5.34 is elevated, and with negative earnings, the stock is priced for perfection. If the AI lease fails to materialize revenue as expected, the stock could face severe de-rating, as evidenced by the 64.7% max drawdown over the past year.
CLSK Technical Analysis
CleanSpark's stock has experienced a volatile year, with a 1-year price change of +22.09%, but the current price of $11.66 sits near the lower end of its 52-week range, at approximately 49.4% of the range (calculated as (11.66 - 8.0) / (23.61 - 8.0) = 0.494). This positioning suggests the stock is trading closer to its 52-week low of $8.00 than its high of $23.61, indicating a potential value opportunity or a falling knife, depending on the fundamental outlook. The stock's beta of 3.886 indicates it is significantly more volatile than the market, amplifying both upside and downside moves.
Beta
3.89
3.89x market volatility
Max Drawdown
-64.7%
Largest decline past year
52-Week Range
$8-$24
Price range past year
Annual Return
+22.1%
Cumulative gain past year
| Period | CLSK Return | S&P 500 |
|---|---|---|
| 1m | -2.9% | +3.0% |
| 3m | -36.2% | +1.4% |
| 6m | +17.2% | +13.1% |
| 1y | +22.1% | +19.3% |
| ytd | +1.0% | +12.8% |
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CLSK Fundamental Analysis
CleanSpark's revenue trajectory has been highly erratic, with the most recent quarter (Q2 2026, ending March 31, 2026) showing revenue of $136.4 million, a 24.93% decline year-over-year, and a sequential drop from $181.2 million in Q1 2026. This follows a pattern of volatile revenue, with Q4 2025 at $223.7 million and Q3 2025 at $198.6 million, indicating significant fluctuations likely tied to bitcoin prices and mining difficulty. The company's growth is decelerating, and the revenue miss in the latest quarter has been a key driver of negative investor sentiment, overshadowing its strategic pivot to AI infrastructure.
Quarterly Revenue
$136408000.0B
2026-03
Revenue YoY Growth
-24.9%
YoY Comparison
Gross Margin
-63.1%
Latest Quarter
Free Cash Flow
$-1.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is CLSK Overvalued?
Given that CleanSpark's trailing twelve-month net income is negative (with a net loss of $378.3 million in the latest quarter), the price-to-sales (PS) ratio is the primary valuation metric, as PE ratios are not meaningful. The current PS ratio is 5.34, based on a market cap of $4.09 billion and trailing revenue of approximately $766 million (sum of last four quarters). The forward PS ratio, using estimated revenue of $1.03 billion, implies a forward PS of approximately 3.97, suggesting the market expects significant revenue growth, likely from the AI data center pivot.
PE
11.6x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 3x~8x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
6.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are substantial. CleanSpark's latest quarter showed a net loss of $378.3 million, with negative gross margin of -63.1%, indicating that the cost of revenue exceeded revenue. The company's free cash flow is deeply negative at -$1.07 billion TTM, and with a debt-to-equity ratio of 0.38, it is not overly leveraged but may need to raise capital. The revenue decline of 24.9% YoY and erratic quarterly performance (from $223.7M in Q4 2025 to $136.4M in Q2 2026) highlight a lack of earnings stability, making it difficult to value the company on fundamentals.