Bitcoin mining analyst reaffirms CleanSpark stock as Buy

CleanSpark stock has the potential for an upside despite the mixed earnings in its most recent financial report.

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

Analyst reiterats ‘Buy’ Rating for CleanSpark

Despite the mixed third quarter 2024 financial results, H.C. Wainwright says the revenue growth of 129% year over year aligned with their estimate.

CLSK, which hovered near $10.95 at the time of writing, also has upside potential given the company achieved its hashrate guidance for the end of June 2024 at 20 exahashes per second. This quarter-over-quarter increase represented a 24% rise in hashrate over the six-month period, Colonnese noted.

CleanSpark is also on track to reach 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 main positives around this is the acquisition of GRIID Infrastructure that promises over 400 megawatts of power over the next two years.

The $50 million credit deal with Coinbase is another major factor.

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

CleanSpark performance

The crypto mining stock, however, has witnessed a pullback alongside the broader market, with its value down 13% in the past week and 30.9% in the past month. The miner, which mined 445 BTC in June, also saw a dip in overall BTC mined over the third quarter compared to the second quarter.

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

In their estimate, H.C. Wainwright sees increased revenue for the period ending Sept. 30 and for the 2025 financial period. The firm has raised their revenue estimate to $679 million from the previous $589.6 million, combining this with the higher hashrate and forecast BTC price of $81,513 for the end of 2025 to give CLSK a target price of $27.

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