Analyst’s Top Pick: CleanSpark Soars

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Mike Colonnese, the esteemed senior crypto analyst at H.C. Wainwright & Co., has once again donned his prophetic hat and declared CleanSpark as the firm’s top pick, following the company’s first-quarter earnings report. 🤩

Bitcoin mining company CleanSpark has been on a roll, posting an 82% quarter-over-quarter increase in revenue to a whopping $162.3 million. The company’s fortunes have been buoyed by a 33% rise in Bitcoin (BTC) production and a 37% increase in average Bitcoin prices. 💸

During the quarter, CleanSpark produced 1,945 BTC, a 33% increase from the previous quarter’s 1,465 BTC. Its deployed hash rate also jumped 41.7% quarter-over-quarter to a respectable 39.1 EH/s. 🚀

In a research note, Colonnese stated that CleanSpark’s previous goal of reaching 50 EH/s by June remains achievable. He also estimated that the company holds a staggering $1.3 billion in total liquidity between cash and Bitcoin, while having less than $80 million in remaining capital expenditures needed to fund its expansion. 💸

‘Highest conviction name’

CleanSpark is also H.C. Wainwright’s “highest conviction name” in the Bitcoin mining sector. The analyst expects the company’s management to provide a calendar-year-end outlook soon, with performance likely to exceed current guidance. 📈

The report described CleanSpark as “one of the largest and last remaining” pure-play Bitcoin miners in the industry, backed by a “best-in-class” management team. 💼

H.C. Wainwright maintained a Buy rating on CleanSpark’s stock, with an unchanged $27 price target. This valuation is based on an 8.5x enterprise value-to-revenue multiple, using 2025 revenue estimates of $961.2 million. 📊

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2025-02-07 23:52