CleanSpark
CLSK
$13.98
+5.11%
CleanSpark Inc. is a digital infrastructure company that operates in the data center and cryptocurrency mining industry, focusing on scalable and energy-efficient Bitcoin mining operations across the United States. The company has positioned itself as a vertically integrated player, aiming to control its energy costs and infrastructure, which is a critical differentiator in the capital-intensive and energy-sensitive Bitcoin mining sector. The current investor narrative is intensely focused on the company's operational resilience and growth trajectory amidst volatile Bitcoin prices, with recent attention also drawn to its exceptionally high short interest, signaling a deep-seated debate between bullish expansion prospects and bearish concerns over profitability and sector headwinds.…
CLSK
CleanSpark
$13.98
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 $18.17 and implied upside of +30.0% versus the current price.
Average Target
$18.17
1 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
1
covering this stock
Price Range
$11 - $18
Analyst target range
Analyst coverage for CleanSpark appears limited based on the provided data, with only one analyst providing estimates for revenue and EPS, which is insufficient to form a meaningful consensus; this typically indicates the stock is a smaller-cap, high-volatility name with limited institutional research, leading to less efficient price discovery. The institutional ratings data shows a pattern of reiterated 'Buy' or 'Outperform' ratings from several firms (e.g., B. Riley, Macquarie, Needham) throughout early 2026, suggesting maintained bullish sentiment among the limited covering analysts, though the absence of a published average price target and wide target range prevents calculation of a concrete upside or downside implied from the current price.
Bulls vs Bears: CLSK Investment Factors
The investment debate for CleanSpark is a classic clash between deep value and deep risk. The bull case is anchored in a historically low valuation, a strong recent price rebound potentially fueled by short covering, and maintained analyst optimism. The bear case is grounded in severe and unsustainable cash burn, wildly inconsistent profitability, and extreme volatility. Currently, the bearish evidence holds stronger weight due to the fundamental unsustainability of a -$1 billion annual free cash flow burn. The single most important tension is whether the company can achieve operational leverage and positive cash flow before its liquidity is exhausted. The resolution of this cash burn crisis will ultimately determine if the current low valuation is a trap or an opportunity.
Bullish
- Strong 1-Month Rebound & High Short Interest: The stock has surged 41.18% over the past month, significantly outperforming the S&P 500's 9.98% gain. This explosive move, coupled with a short ratio of 4.27, suggests a powerful short-covering rally could be underway, indicating a potential trend reversal from the prior downtrend.
- Attractive Valuation Relative to History: The stock's Price-to-Sales (PS) ratio of 5.34x is near the lower end of its own historical range, which has seen highs of 39.36x. This suggests a significant de-rating has occurred, potentially offering a value opportunity if the company's fundamentals stabilize and growth resumes.
- Solid Balance Sheet Liquidity: CleanSpark maintains a strong current ratio of 4.18 and a manageable debt-to-equity ratio of 0.38. This provides ample near-term liquidity to navigate operational cash burn and pursue growth initiatives without an immediate solvency crisis.
- Analyst Sentiment Remains Bullish: Despite limited coverage, institutional analysts from firms like B. Riley, Macquarie, and Needham have reiterated 'Buy' or 'Outperform' ratings in early 2026. This maintained bullish sentiment among the few covering analysts provides a counter-narrative to the bearish short interest.
Bearish
- Severe and Persistent Cash Burn: CleanSpark's operational cash flow was -$161.14 million in the latest quarter, with a trailing twelve-month free cash flow of -$1.045 billion. This massive cash burn rate is unsustainable long-term and necessitates continuous external financing or asset sales to fund operations.
- Extreme Earnings Volatility & Recent Loss: Profitability is highly erratic, swinging from a $257.39 million net income in Q3 FY2025 to a net loss of $378.71 million in Q1 FY2026. This underscores the fundamental challenge of high fixed costs and variable Bitcoin mining revenues, making earnings unpredictable.
- Gross Margin Compression & High Beta: Gross margin compressed to 34.10% in Q1 FY2026 from 33.33% in the prior quarter, indicating pressure on profitability. Furthermore, a beta of 3.54 means the stock is 254% more volatile than the market, exposing investors to amplified downside during sector or market sell-offs.
- Long-Term Price Downtrend & High Drawdown: The stock is down 31.63% over the past six months and has experienced a maximum drawdown of -64.74%. Trading at 51.5% of its 52-week range, it remains in a state of consolidation after a severe decline, lacking clear long-term upward momentum.
CLSK Technical Analysis
The prevailing price trend for CleanSpark is one of extreme volatility within a pronounced downtrend over the past six months, as evidenced by a -31.63% 6-month price change, though it has shown a significant 40.37% gain over the past year. The stock is currently trading at approximately 51.5% of its 52-week range ($7.82 low, $23.61 high), a mid-range position that suggests the stock is in a state of consolidation after a severe drawdown, neither signaling clear momentum nor deep value, but rather high uncertainty. Recent short-term momentum presents a stark divergence, with a powerful 41.18% surge over the past month sharply contrasting the longer-term weakness, indicating a potential trend reversal or a significant short-covering rally, especially given the stock's high beta of 3.54, which amplifies all price movements. Key technical levels are clearly defined by the 52-week low of $7.82 as critical support and the 52-week high of $23.61 as major resistance; a sustained breakout above resistance would signal a renewal of the long-term uptrend, while a breakdown below support could trigger another leg down. The stock's beta of 3.54 indicates it is approximately 254% more volatile than the broader market (SPY), which necessitates outsized risk tolerance and careful position sizing for investors, as evidenced by the stock's 64.74% maximum drawdown.
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
+45.5%
Cumulative gain past year
| Period | CLSK Return | S&P 500 |
|---|---|---|
| 1m | +24.0% | +7.7% |
| 3m | +41.9% | +9.7% |
| 6m | +27.6% | +11.3% |
| 1y | +45.5% | +27.3% |
| ytd | +21.0% | +9.7% |
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CLSK Fundamental Analysis
CleanSpark's revenue trajectory shows growth but with significant quarterly volatility; the most recent Q1 FY2026 revenue was $181.18 million, representing an 11.63% year-over-year increase, yet this follows a prior quarter (Q4 FY2025) where revenue was higher at $223.65 million, indicating potential deceleration or lumpiness in mining output tied to Bitcoin's price and network difficulty. The company's profitability is highly inconsistent and currently negative, with a net loss of $378.71 million in the latest quarter and a gross margin of 34.10%, a compression from the 33.33% gross margin in the prior quarter; this erratic performance, swinging from a $257.39 million net income in Q3 FY2025 to deep losses, underscores the fundamental challenge of operating leverage in a business with high fixed costs and variable cryptocurrency revenues. The balance sheet and cash flow situation is concerning from an operational cash generation standpoint, with a trailing twelve-month free cash flow of -$1.045 billion and an operating cash flow of -$161.14 million in the latest quarter, indicating the company is burning substantial cash to fund operations and growth, though it maintains a strong current ratio of 4.18 and a manageable debt-to-equity ratio of 0.38, suggesting near-term liquidity is not an immediate crisis.
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)
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Valuation Analysis: Is CLSK Overvalued?
Given the company's inconsistent profitability, with a positive trailing diluted EPS of $0.089 but a deeply negative net income in the most recent quarter, the Price-to-Sales (PS) ratio is a more stable primary valuation metric, currently at 5.34x. The forward PE ratio is negative at -19.79x, reflecting analyst expectations for near-term losses, while the trailing PE of 11.23x is based on past profitability that may not be indicative of current run-rate earnings. Compared to the broader software application industry, a PS ratio of 5.34x is difficult to benchmark without a specific sector average, but the valuation appears to be pricing in significant growth expectations despite recent operational cash burn. Historically, the stock's own PS ratio has fluctuated wildly, from a high of 39.36x in mid-2024 down to the current 5.34x, indicating the current multiple is near the lower end of its own historical range, which could suggest either a value opportunity if fundamentals stabilize or a justified de-rating due to deteriorating financials.
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 sustainability. CleanSpark is burning cash at an alarming rate, with a TTM free cash flow of -$1.045 billion and an operating cash flow of -$161.14 million last quarter. This burn rate, combined with gross margin compression to 34.10%, creates a runway problem. While the balance sheet shows a strong current ratio of 4.18, the company's ability to continue funding operations and growth without dilutive equity raises or taking on more debt is a critical near-term risk. Earnings are also highly volatile, swinging from a $257 million profit to a $379 million loss in consecutive quarters, making the business model fundamentally unpredictable.
Market & Competitive Risks are amplified by the stock's extreme volatility and sector sensitivity. With a beta of 3.54, CLSK is a hyper-volatile instrument that will magnify any negative market or sector move. The stock trades at a PS ratio of 5.34x, which, while low historically, is pricing in significant growth that may not materialize if Bitcoin prices stagnate or decline. The company operates in the fiercely competitive and capital-intensive Bitcoin mining sector, where energy costs and network difficulty are constant headwinds. Recent news highlighting it as a top shorted stock underscores deep-seated market skepticism about its business model and profitability path.
Worst-Case Scenario involves a perfect storm of declining Bitcoin prices, rising energy costs, and an inability to secure additional financing. This would accelerate the cash burn, force asset sales at distressed prices, and lead to significant equity dilution. The chain of events could trigger a breakdown below the critical $7.82 support (the 52-week low), leading to a loss of investor confidence and a rush for the exits. From the current price of $12.17, a realistic downside in this adverse scenario could be a retest and break of the 52-week low, representing a potential loss of approximately -36%. The historical maximum drawdown of -64.74% serves as a stark reminder of the stock's destructive potential during downturns.