Is CleanSpark (CLSK) A Bargain After Weak Results And Lower Bitcoin Production?

CleanSpark (CLSK) just reported unaudited bitcoin production of 529 BTC for September and 5,432 BTC for the current year, giving investors fresh data to weigh against recent revenue declines and ongoing losses.

CleanSpark’s latest production figures land in a rough tape, with the share price falling 10.2% on October 16 to US$8.40 and sliding about 42% over the past month, while the 1 year total shareholder return is down roughly 57% despite a strong 3 year gain.

Compare CleanSpark’s rough stretch with other miners under pressure and see which operators still screen well on balance sheet strength and fundamentals through our curated list of solid balance sheet and fundamentals (25 results)

The recent selloff in CleanSpark now forces a sharper question. Are traders repricing a weaker bitcoin mining business or reacting to sentiment whiplash around heavy losses and long dated data center contracts as valuation comes into focus next?

Most Popular Narrative: 65% Undervalued

Against CleanSpark’s last close at $8.40, the most followed narrative assigns a fair value of $23.81 using a 10.08% discount rate. This frames today’s bitcoin output and data center leases as inputs to a much higher long term valuation model.

The analysts have a consensus price target of $23.81 for CleanSpark based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analysts, you’d need to believe that by 2029, revenues will be $857.1 million, earnings will come to $98.0 million, and it would be trading on a PE ratio of 84.4x, assuming you use a discount rate of 10.1%.

See why 128 investors see CleanSpark as 65% undervalued.

Result: Fair Value of $23.81 (UNDERVALUED)

Still, the CleanSpark story can break if prolonged weakness in Bitcoin economics or rising energy and hardware costs squeeze already loss making operations and strain funding for new sites.

Find out about the key risks to this CleanSpark narrative.

Next Steps

Mixed signals around CleanSpark can make it hard to know which story to trust. Move quickly, pull up the full data, and benchmark it against your own expectations by weighing the 1 key reward and 3 important warning signs.

Looking for more investment ideas beyond CleanSpark?

If CleanSpark has you rethinking your exposure, do not stop here. Fresh ideas often come from scanning outside your usual watchlist and testing new angles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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