Bitcoin mining analyst reaffirms CleanSpark stock as Buy

CleanSpark stock has upside potential despite mixed earnings in its latest financial report.

HC Wainwright analyst Mike Colonnese has reiterated his “buy” rating on the firm’s shares of the Bitcoin (BTC) miner, with a $27 target price. The analyst reaffirmed his buy rating on CleanSpark in a note shared with crypto.news on Aug. 12.

Analyst Reiterates ‘Buy’ Rating on CleanSpark

HC Wainwright says its third-quarter 2024 financial results are mixed, but in line with its forecast of 129% annualized revenue growth.

CLSK, which is trading close to $10.95 at the time of writing, also has upside potential given that the company is set to reach its hashrate guidance of 20 exahashes per second by the end of June 2024. This quarter-over-quarter increase represents a 24% increase in hashrate over the six-month period, Colonnese noted.

CleanSpark is also on track to reach an earlier guidance of 32 EH/s by the end of the year, with expansion efforts and the addition of new mining rigs key to this. One of the key positive developments around this is the acquisition of GRIID Infrastructure, which promises over 400 megawatts of power over the next two years.

The $50 million loan agreement with Coinbase is another important factor.

“We note that the company has a history of exceeding guidance targets and this year may be no different,” Colonnese wrote.

CleanSpark performance

But the crypto mining stock has witnessed a pullback along with the broader market, shedding 13% last week and 30.9% last month. The miner, which mined 445 BTC in June, also saw a decline in overall BTC extraction in the third quarter compared to the second quarter.

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

HC Wainwright sees rising revenue in its forecast for the period ending September 30 and fiscal 2025. The company raised its revenue forecast to $679 million from the previous $589.6 million, combined with higher hashrate and an estimated BTC price of $81,513 by the end of 2025, giving CLSK a $27 target price.

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