One-glance verdict
Overvalued
$-2.14 our estimate vs market $13.95
Wall Street consensus: $23.81 (-1,213.4% lower than our fair-value estimate)
752% below our estimate, beyond the bull case
Fundamentals snapshot
CleanSpark, Inc.
CLSK · NCM · Financial Services · Capital Markets
Current price
$13.95
52-week range
$8.00 - $23.61
Market cap
$3.58B
Balance sheet
Distressed
-9.44x Concerning
Net debt $1.58B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 102.2% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from -12.6% to -165.2% over 3 years.
- Risk Return on equity was -68.6% last year — the company lost money on shareholders' equity.
What this company does
CleanSpark, Inc.
CleanSpark is a Bitcoin mining company, which means it uses powerful computers to solve complex math problems to earn new bitcoins. The company makes money from the bitcoins it successfully mines and from fees for processing transactions on the Bitcoin network. As a result, its success is closely tied to the price of Bitcoin and its ability to manage the high electricity costs needed to run its computer centers.
How the company got here
CleanSpark started its life long before it had anything to do with Bitcoin, originally focusing on energy software after being founded in 1987. For decades, it developed technologies for managing power grids. The major turning point came in 2021, when the company shifted its focus entirely to become a large-scale Bitcoin mining operator, leveraging its expertise in energy to power its new operations.
What it actually does
At its core, CleanSpark is in the business of Bitcoin mining. Think of it like a digital gold rush: the company builds and runs large data centers filled with specialized computers. These computers work around the clock to solve complex math problems, and as a reward for this work, they earn new Bitcoin. CleanSpark owns and operates these facilities, primarily in the United States, managing everything from securing low-cost electricity to keeping the computers running efficiently.
Bitcoin Mining
This is the company's main business and how it currently makes nearly all of its money. CleanSpark runs data centers where thousands of powerful computers compete to verify transactions on the Bitcoin network. In return for providing this computing power, the company is rewarded with newly created Bitcoin. The amount of Bitcoin it earns is directly related to how much computing power, or 'hash rate,' it can bring online, making operational efficiency (getting the most computing power for the least amount of electricity) a key to its profitability.
AI and High-Performance Computing (HPC) Infrastructure
This is a new and growing part of CleanSpark's business, representing a strategic shift for the future. The company is starting to use its expertise in building and powering large data centers to serve customers in the artificial intelligence industry. Instead of mining Bitcoin, these data centers will provide the massive computing power that AI applications require. CleanSpark makes money here by leasing its data center space and power to large tech companies, a move intended to create a more predictable, long-term revenue stream.
Digital Asset Management
This segment functions like the company's internal treasury department, managing the Bitcoin it has mined. Instead of just holding or immediately selling all the Bitcoin it produces, the company actively manages these digital assets. This can involve strategies to generate extra income from its holdings or using the Bitcoin as collateral (an asset pledged to a lender to secure a loan) for financing. This allows the company to fund its growth without always having to sell its mined Bitcoin or issue new stock, which can cause dilution (reducing the ownership percentage of existing shareholders).
What management is betting on now
Management is making a major bet on becoming a broad digital infrastructure provider, expanding beyond just Bitcoin mining. They are leveraging their key assets—land, access to large amounts of power, and experience running data centers—to serve the rapidly growing artificial intelligence (AI) industry. The strategy is to use the cash flow (cash generated from normal business operations) from Bitcoin mining to fund the development of data centers for AI and other high-performance computing needs. This pivot aims to create more stable, long-term revenue by leasing facilities to major tech companies, reducing the company's dependence on the volatile price of Bitcoin.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-95.50M
FY2025 Q1
$-176.81M
FY2025 Q2
$-146.38M
FY2025 Q3
$-152.42M
FY2025 Q4
$-130.08M
FY2026 Q1
$-198.06M
FY2026 Q2
$-173.42M
FY2026 Q3
$-118.43M
Revenue
—
Net income
$-239.84M
Diluted EPS
—
Operating cash flow
$-112.33M
Free cash flow
$-118.43M
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Sources
Revenue
—
Net income
$-378.34M
Diluted EPS
—
Operating cash flow
$-135.83M
Free cash flow
$-173.42M
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Sources
Revenue
—
Net income
$-378.71M
Diluted EPS
—
Operating cash flow
$-161.13M
Free cash flow
$-198.06M
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Sources
Revenue
$766.31M
Net income
$-925.00K
Diluted EPS
—
Operating cash flow
$-119.41M
Free cash flow
$-130.08M
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Sources
Revenue
—
Net income
$257.39M
Diluted EPS
—
Operating cash flow
$-109.89M
Free cash flow
$-152.42M
Fetching…
Sources
Revenue
—
Net income
$-138.79M
Diluted EPS
—
Operating cash flow
$-112.28M
Free cash flow
$-146.38M
Fetching…
Sources
Revenue
—
Net income
$246.79M
Diluted EPS
—
Operating cash flow
$-119.45M
Free cash flow
$-176.81M
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Sources
Revenue
$89.28M
Net income
$-62.18M
Diluted EPS
—
Operating cash flow
$-82.69M
Free cash flow
$-95.50M
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Sources
Is it cheap or expensive?
Fair value $-2.14 vs current price $13.95
Wall Street consensus is the average analyst price target: $23.81 (-1,213.4% lower than our fair-value estimate).
Our most-likely fair value is $-2.14 a share — about 115.3% below today's price of $13.95, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $1.6B. Interest coverage -9.4x.
Net debt
$1.58B
Interest coverage
-9.44x
CleanSpark, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 5 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
CLSK
BASELINE
CleanSpark, Inc.
Total debt $1.79B Interest coverage -9.44x This is the baseline the peer rows are being compared against.
Total debt $2.47B Interest coverage -16.99x Neither company has much profit cushion over interest right now.
Total debt $877.80M Interest coverage -14.22x Neither company has much profit cushion over interest right now.
Total debt $5.59B Interest coverage -9.23x Neither company has much profit cushion over interest right now.
Total debt $5.24B Interest coverage -2.12x Neither company has much profit cushion over interest right now.
Total debt $7.67B Interest coverage -3.24x Neither company has much profit cushion over interest right now.
What you should know
The case for and against CLSK
2 Rewards
3 Risks
Rewards
-
Revenue grew 102.2% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from -12.6% to -165.2% over 3 years.
-
Return on equity was -68.6% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 4.0% (peer median: 6.8%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-9.10x
P/B
4.70x
P/S
5.27x
EV/EBITDA
-6.11x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
47.0%
Operating margin
-165.2%
Net margin
-146.9%
ROE
-68.6%
ROA
-27.7%
Health
Liquidity and balance-sheet strength
Debt / equity
2.35x
Current ratio
5.91x
Quick ratio
1.34x
Total debt
$1.79B
Total cash
$202.63M
Growth
How the business has been compounding
Revenue TTM
$1.07B
Revenue 5Y CAGR
98.4%
EPS TTM
-3.78
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-528.71M
Free CF TTM
$-605.69M
FCF margin
-56.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—