On Tuesday, CleanSpark Inc. (NASDAQ:CLSK) received a positive assessment from Cantor Fitzgerald, which assumed coverage on the company's stock with an Overweight rating and established a price target of $27.00. The firm highlighted CleanSpark's efficient mining fleet and strong liquidity position as key factors behind the optimistic outlook.
Cantor Fitzgerald pointed out CleanSpark's current status as having the most efficient mining fleet in the industry, operating at 24.2 joules per terahash (J/TH). This efficiency contributes to CleanSpark's position as the second-lowest in terms of all-in cost to mine a single Bitcoin. The firm's analysis suggests that CleanSpark's aggressive deployment of mining rigs could lead to it achieving the largest hash rate in the industry by the end of 2024, with projections of approximately 48 exahashes per second (EH/S).
The coverage also noted CleanSpark's solid liquidity, ranking third-best among its peers, which bolsters confidence in the company's ability to meet projected operational goals. Cantor Fitzgerald anticipates that once CleanSpark has fully deployed its mining capacity, the average fleet efficiency will improve to below 20 J/TH. This advancement is expected to reinforce CleanSpark's competitive edge as a low-cost Bitcoin miner.
The newly set price target of $27.00 reflects a positive expectation for CleanSpark's stock performance, based on the company's strategic position and operational efficiencies in the cryptocurrency mining sector. The Overweight rating suggests that the firm sees the company's stock as a potentially good investment with the expectation of outperforming the market or its industry peers.
In other recent news, CleanSpark, a U.S.-based bitcoin mining company, has reported significant growth in its operations and financial performance. The company's Q2 revenue for fiscal year 2024 reached a record-breaking $111.8 million, a 163% increase from the previous year, with an adjusted EBITDA of $181.8 million. CleanSpark also turned around its net loss of $18.5 million from the previous year, reporting a net income of $126.7 million for the recent quarter.
In May 2024, CleanSpark mined 417 bitcoins, increasing its total bitcoin holdings to 6,154. The company's mining capacity reached nearly 18 exahashes per second, an industry-leading figure. CleanSpark sold 2.43 bitcoins at an average price of approximately $59,000 per bitcoin, and its current hashrate stands at 17.97 EH/s.
Furthermore, the company has been active in mergers and acquisitions, with plans to finalize the acquisition of a site in Wyoming. It also completed grading and received building permits for its Dalton expansion, which is expected to operate at a capacity of 2.4 EH/s. CleanSpark anticipates further growth and operational efficiency with plans to increase its hashrate to 50 exahash per second by 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.