Introduction
CleanSpark [CLSK] is a pure-play bitcoin miner based in the US, and much of their branding emphasizes their focus in the country.
CLSK is down 33.53% in the past six months to close on January 10, following a significant run in the first half of 2024.
Much of the analyst coverage on CleanSpark is positive despite recent earnings misses, owing to an exciting threshold the firm reached in early January 2025, as well as the pro-cryptocurrency stance of President-elect Donald Trump. But is this bitcoin miner well positioned for sustainable growth?
The Latest CLSK News
On January 9, CleanSpark surpassed 10,000 self-mined bitcoin in its treasury, ranking it the fourth-largest corporate bitcoin holder globally. This was the result of a 236% year-over-year increase in its bitcoin holdings.
“This accomplishment is a direct result of our unwavering focus on scaling efficiently and responsibly,” said Zach Bradford, CEO and President of CleanSpark. “Every bitcoin in our treasury has been mined in the United States, supported by American energy and jobs.”
The preeminent focus on US-based production, including its rhetoric of being “America’s Bitcoin Miner”, could be seen as a tailwind given President-elect Trump’s focus on domestic business.
On the flipside, this milestone comes as most bitcoin miners are shoring up their treasuries in the face of tightening margins, soaring production costs — particularly energy — and the potential volatility of a second Trump presidency.
Is CLSK Set to Rise Again?
CleanSpark’s headiest moments came in 2021, when its share price hit a high of $42.60 on January 8. Following a drop towards the end of the year, CLSK struggled to rise back above $6 per share for large swathes of 2022 through 2023.
While recent performance has been rocky, then, investors might see optimism in the fact the stock spent six months consistently above the $15 mark in 2024. The stock is down just 4.36% in the 12 months to January 10.
As the firm confirms its position as one of the world’s leading bitcoin miners, it could be one for investors to watch.
Can CLSK Keep Up with the Competition?
Bitcoin mining is a competitive environment, with new and established names regularly making headlines.
Canada-headquartered HIVE Digital Technologies [HIVE] facilitates bridge-building between the blockchain sector and traditional capital markets.
Cipher Mining [CIFR] is an emerging technology company with a focus on developing and operating bitcoin mining data centers in the US.
CLSK | HIVE | CIFR | |
Market Cap | $2.83bn | $391.54m | $1.73bn |
P/S Ratio | 5.77 | 2.56 | 9.84 |
Estimated Sales Growth (Current Fiscal Year) | 96.55% | 1.59% | 17.75% |
Estimated Sales Growth (Next Fiscal Year) | 33.31% | 89.70% | 99.39% |
Source: Yahoo Finance
HIVE’s growth has stalled, failing to match the heady highs it reached during the 2021 Bitcoin boom. Since the end of 2022, its share price has been largely uninteresting, and predicted growth of just 1.59% is unlikely to fill investors with enthusiasm.
Cipher Mining saw lower production rates than CleanSpark — reporting 234 Bitcoin mined in December 2024 versus an impressive 668 for CleanSpark. However, the firm has high growth predictions and is currently smaller than CLSK, so there could be more potential upside for the emerging firm.
CLSK Stock: The Investment Case
Bitcoin is a difficult beast, with concerns over environmental impact, interplays with artificial intelligence and wider geopolitical tensions all impacting stock prices for companies in the sector.
So, what are the considerations investors interested in CleanSpark should bear in mind?
The Bull Case for CLSK
There is no denying that CleanSpark’s most recent operational metrics are impressive.
As well as threshold-breaking production numbers in December 2024, including an average of 21.56 bitcoin mined every day of the month, the company enhanced fleet efficiency to under 17.6 J/Th ahead of schedule.
Many important metrics have the company overperforming in recent weeks and this sets them up very well in a competitive market.
In addition to operational efficiency, CLSK benefits from impressive financial buffers, including $126.14m held in cash and $413.03m in Bitcoin at the end of Q3 2024.
In an industry that faces a fair deal of uncertainty, the importance of a strong financial grounding is not to be underestimated.
The Bear Case for CLSK
That said, it is important to note the headwinds CleanSpark is facing.
Despite strong financial and operational numbers in the latter half of 2024, the company saw an earnings loss of $0.69 in 2024, 89.72% below estimates.
Analysts have punchy targets for the firm in upcoming quarters, and investors may well question whether the firm will be able to match them.
Lastly, bitcoin mining is a notoriously volatile industry, sensitive to wider political and economic headwinds. Even though incoming Trump government promises to benefit US-based miners, a lot of uncertainty remains.
Conclusion
CleanSpark is certainly a stock to watch in 2025, particularly for those already interested in bitcoin growth plays. As the US political environment continues to develop, investors would do well to monitor the company’s performance.
Disclaimer Past performance is not a reliable indicator of future results.
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