Bitcoin mining analyst reaffirms CleanSpark stock as Buy

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As a seasoned researcher with a knack for deciphering market trends and a penchant for Bitcoin mining stocks, I find myself intrigued by CleanSpark’s current standing. Despite the recent dip in its stock price and a slight decline in BTC mined during the third quarter, the company’s impressive revenue growth and hashrate achievements catch my eye. The acquisition of GRIID Infrastructure and the $50 million credit deal with Coinbase further solidify CleanSpark’s position as a promising player in the crypto mining sector.

Despite some mixed results in their latest financial report, CleanSpark’s stocks show promise for potential growth.

Mike Colonnese, an analyst at H.C. Wainwright, has maintained his positive outlook for Bitcoin (BTC) miner stocks, recommending a purchase and setting a target price of $27 per share. In a recent communication to crypto.news on August 12th, he also reiterated CleanSpark as a buy.

Analyst reiterats ‘Buy’ Rating for CleanSpark

Regarding the blended third-quarter earnings for 2024, H.C. Wainwright notes that the company’s 129% yearly increase in revenue corresponds with their projected estimate.

At the point of this writing, CLSK was hovering around $10.95. With the company successfully meeting its hashrate target for June 2024 at 20 exahashes per second, there’s a possibility for further growth. As Colonnese pointed out, this quarter-over-quarter increase signified a significant 24% boost in hashrate over a six-month span.

CleanSpark is progressing well towards its initial prediction of achieving 32 EH/s by year-end, primarily through ongoing expansion projects and the introduction of new mining equipment. A significant factor contributing to this progress is the acquisition of GRIID Infrastructure, which is projected to provide over 400 megawatts of power within the next two years.

The $50 million credit deal with Coinbase is another major factor.

As someone with years of experience analyzing financial performance, I’ve often found myself impressed by companies that consistently surpass their guidance targets. This year, based on my observations and the track record of this company, I am optimistic that it could repeat its stellar performance, demonstrating yet again why it stands out in its industry.

CleanSpark performance

As someone who has been closely following the crypto market for several years now, I can attest that the recent downturn in the value of crypto mining stocks is not entirely unexpected. Over the past few months, we have seen the broader market take a hit due to various factors such as increasing regulations and overall economic uncertainty. The 13% drop in the value of these stocks over the past week and 30.9% decline in the past month is a clear indication that even the crypto mining sector is not immune to the market’s volatility.

While impactful, growth projections give the stock a positive outlook.

According to H.C. Wainwright’s latest assessment, they anticipate higher revenue for both the upcoming quarter ending Sept. 30 and the financial year 2025. They’ve bumped up their revenue projection from $589.6 million to $679 million. Additionally, they factor in a higher hashrate and a projected Bitcoin price of $81,513 for the end of 2025 to arrive at a target price of $27 for CLSK.

CLSK has a 52-week low of $3.38 and 52-week high of $24.7.

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2024-08-12 21:10