Core Thesis - The article presents a bullish thesis for CleanSpark, Inc. (NASDAQ: CLSK), a Bitcoin mining company, based on technical analysis that includes price action, momentum, volume, and relative strength [1]. Investment Strategy - The focus is on building financial assets for retirement, with an interest in both long and short trading strategies, including the use of inverse ETFs to capitalize on market declines [1]. - The article emphasizes the importance of executing a trading plan effectively and achieving absolute investing results [1]. Learning and Development - The author views the articles as a means to maintain focus on developing successful trades and anticipates learning from feedback in the comments section [1].

Group 1 - CleanSpark's stock closed at $8.73, reflecting a decrease of 0.68% from the previous trading session, underperforming compared to the S&P 500's gain of 0.16% [1] - Over the last month, CleanSpark's shares have decreased by 1.24%, while the Finance sector lost 0.19% and the S&P 500 lost 3.59% [1] Group 2 - The upcoming earnings disclosure is expected to show an EPS of $0.02, which represents an 84.62% decline compared to the same quarter last year, while revenue is projected at $191.98 million, indicating a 71.72% increase year-over-year [2] - For the entire year, the Zacks Consensus Estimates forecast earnings of $0.85 per share and revenue of $810.72 million, reflecting increases of 426.92% and 113.93% respectively compared to the previous year [3] Group 3 - Recent revisions to analyst forecasts for CleanSpark are important as they indicate changing near-term business trends, with positive revisions suggesting a favorable outlook on the company's health and profitability [4] - Empirical research shows that revisions in estimates correlate with stock price performance, and investors can utilize the Zacks Rank for actionable insights [5] Group 4 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has historically outperformed, with 1 stocks returning an average annual gain of +25% since 1988; CleanSpark currently holds a Zacks Rank of 3 (Hold) [6] - The current Forward P/E ratio for CleanSpark is 10.34, which is a premium compared to the industry average of 9.55; the Financial - Miscellaneous Services industry ranks in the top 15% of all industries [7]

Core Viewpoint - CleanSpark (CLSK) has experienced a significant decline in stock performance, returning -19% over the past month, compared to the Zacks S&P 500 composite's -7.5% and the Zacks Financial - Miscellaneous Services industry's -11.9% [1] Earnings Estimate Revisions - CleanSpark is expected to post earnings of $0.02 per share for the current quarter, reflecting a year-over-year decline of -84.6%, with the Zacks Consensus Estimate changing -88% over the last 30 days [4] - The consensus earnings estimate for the current fiscal year is $0.85, indicating a year-over-year increase of +426.9%, with a change of +46.6% over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate is $0.44, representing a decline of -48.2% from the previous year, with a change of -50% over the past month [5] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $191.98 million, indicating a year-over-year increase of +71.7% [8] - For the current fiscal year, the sales estimate is $810.72 million, reflecting a +113.9% change, while the next fiscal year's estimate is $1.04 billion, indicating a +27.7% change [8] Last Reported Results and Surprise History - CleanSpark reported revenues of $162.31 million in the last quarter, representing a year-over-year increase of +120% [9] - The EPS for the same period was -$0.07, compared to -$0.02 a year ago, with a revenue surprise of +6.28% and an EPS surprise of +12.5% [10] - Over the last four quarters, CleanSpark surpassed consensus EPS estimates twice and topped consensus revenue estimates twice [10] Valuation - CleanSpark is graded D in terms of valuation, indicating it is trading at a premium to its peers [14]

Core Viewpoint - CleanSpark's stock performance has shown a slight increase recently, but it has underperformed over the past month compared to broader market indices [1] Financial Performance - The upcoming earnings release is anticipated, with projected earnings per share (EPS) of $0.13, unchanged from the same quarter last year, and revenue expected to be $229.66 million, reflecting a 105.42% increase year-over-year [2] - For the entire fiscal year, the Zacks Consensus Estimates predict an EPS of $0.58 and revenue of $899.96 million, indicating increases of 323.08% and 137.48% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for CleanSpark are important as they indicate shifts in near-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system, which assesses these estimate changes, currently places CleanSpark at a rank of 3 (Hold), indicating a neutral outlook [6] Valuation Metrics - CleanSpark is trading at a Forward P/E ratio of 13.74, which is higher than the industry average Forward P/E of 9.27, suggesting a premium valuation [7] - The Financial - Miscellaneous Services industry, to which CleanSpark belongs, has a Zacks Industry Rank of 39, placing it in the top 16% of over 250 industries [7][8]

Core Insights - CleanSpark, Inc. will be included in the S&P SmallCap 600 index effective March 24, 2025, marking a significant milestone for the company [1][2] - The inclusion is expected to enhance visibility within the investment community and provide broader exposure to CleanSpark's vertically integrated Bitcoin mining model [2] Company Overview - CleanSpark is a leading pure play Bitcoin miner with a portfolio of mining facilities across the United States, leveraging competitive energy prices [3] - The company focuses on optimizing its mining operations to deliver superior returns to shareholders by monetizing low-cost, reliable energy [3]

Financial Data and Key Metrics Changes - The company's revenue for Q1 2025 was $162.3 million, representing a 120% increase compared to the same period last year [14][46] - Net income reached $246.8 million, or $0.85 per basic share, with adjusted EBITDA growing to $321.6 million [14][53] - The average price of Bitcoin during the quarter exceeded $83,000, with a peak of $108,000, while the marginal cost per coin was approximately $34,000, a $2,000 improvement from the prior quarter [15][52] Business Line Data and Key Metrics Changes - The company produced 4% less Bitcoin compared to the same quarter last year, despite a significant increase in average Bitcoin price [46] - The average revenue recognized per Bitcoin produced in Q1 was almost $84,000, a 130% increase year-over-year [46] - Fleet efficiency improved from 21.94 joules per terahash to 17.59 joules per terahash, marking a 20% improvement [50] Market Data and Key Metrics Changes - The company closed the quarter with a total Bitcoin treasury of 9,952, which increased to 10,556 by the end of the following month [16] - The cost of power for the first quarter was $0.049 per kilowatt hour, slightly higher than the previous quarter [54] Company Strategy and Development Direction - The company aims to reach 50 exahash by the first half of 2025, fully funded without relying on equity [12] - A strategic focus on operational excellence and capital stewardship has positioned the company as the largest Bitcoin producer in the U.S. [7][11] - The company is exploring selective acquisition opportunities, particularly in regions with strong power contracts [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment shifting positively for Bitcoin mining, particularly with recent support from political leaders [32][33] - The company is committed to responsible growth and operational excellence, emphasizing the importance of energy policy in shaping the industry's future [34][35] Other Important Information - The company secured a $650 million convertible bond to fund growth and share buybacks, reflecting a strong balance sheet with total assets of nearly $2.8 billion [11][59] - The company celebrated its fifth anniversary of uplisting to NASDAQ, highlighting resilience and commitment to growth [35][36] Q&A Session Summary Question: Details on Bitcoin treasury management strategy - The company is evaluating counterparties and options for its Bitcoin treasury management, adopting a cautious approach to leverage [71][72] Question: Cadence of cash rate growth towards 50 exahash - The company expects a steady increase in exahash over the next six months, primarily through existing sites [75] Question: Management philosophy driving operational improvements - The management focuses on the intersection of various factors that contribute to profitability, emphasizing perseverance and dedication [80][82] Question: Growth strategy beyond 50 exahash - The company aims to continue scaling responsibly, ensuring that each additional exahash contributes positively to cash flow [128] Question: Community partnerships and utility relationships - The company has seen a shift in community sentiment towards welcoming Bitcoin mining, recognizing its economic benefits [133][135]

Core Viewpoint - CleanSpark (CLSK) has experienced a significant decline of -17.1% in share price over the past month, contrasting with the Zacks S&P 500 composite's -4.1% change, and the Zacks Financial - Miscellaneous Services industry decline of 9.4% [1] Earnings Estimate Revisions - The consensus earnings estimate for CleanSpark for the current quarter is $0.13 per share, indicating no change from the previous year, with a notable increase of +177.8% in the estimate over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $0.58, reflecting a substantial change of +323.1% from the prior year, with a recent increase of +222.2% [4] - The next fiscal year's consensus earnings estimate stands at $0.88, indicating a change of +51.7% from the previous year, with a recent adjustment of +8.6% [5] Revenue Growth Forecast - CleanSpark's consensus sales estimate for the current quarter is $229.66 million, representing a year-over-year change of +105.4% [8] - The sales estimates for the current and next fiscal years are $899.96 million and $1.16 billion, indicating changes of +137.5% and +28.7%, respectively [8] Last Reported Results and Surprise History - In the last reported quarter, CleanSpark generated revenues of $162.31 million, marking a year-over-year increase of +120%, while the EPS was -$0.07 compared to -$0.02 a year ago [9] - The reported revenues exceeded the Zacks Consensus Estimate of $152.71 million by +6.28%, and the EPS surprise was +12.5% [10] - Over the last four quarters, CleanSpark surpassed consensus EPS estimates twice and topped consensus revenue estimates twice [10] Valuation - CleanSpark is graded F in the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [14]

Core Insights - CleanSpark, Inc. mined 624 bitcoin in February 2025, increasing its total bitcoin treasury by nearly 6% month over month to 11,177 bitcoin [1][10] - The company achieved an average hashrate of 39.07 EH/s and improved average fleet efficiency to 17.07 J/Th, resulting in an average of 22.30 bitcoin mined daily [5][10] - CleanSpark is on track to reach a hashrate of 50 EH/s by June 30, 2025, with ongoing investments to support future growth beyond this target [3][10] Mining Operations - The company removed the last remaining machines from Coinmint in New York, achieving a 100% owned and operated portfolio [3] - CleanSpark has nearly 1 GW of power under contract, with sufficient capacity available for energization to support its growth plans [3] - The peak fleet efficiency at the end of February was 16.82 J/Th, with a single-day high of 23.53 bitcoin mined [5] Financial Performance - CleanSpark sold 2.73 bitcoin in February at an average price of approximately $95,695 per bitcoin [5][10] - The company produced a total of 1,250 bitcoin in the calendar year 2025 [10] Expansion Plans - Ongoing expansions in Georgia aim to enhance existing facilities and add immersion deployments [7] - In Cheyenne, Wyoming, power contracts have been expanded by 35 MW to a total of 110 MW, with further expansions expected [8] - Construction continues in Jackson, Tennessee, for 48 MW of air-cooled infrastructure, which will support approximately 3.1 EH/s [9]

Company Overview - CleanSpark, Inc. is a bitcoin mining company with a market capitalization of $2.95 billion as of the article's publication date [1] - The company was founded in October 1987 and initially operated in software and controls technology [1] Investment Insights - The article reflects a beneficial long position in CleanSpark shares, indicating potential investor confidence in the company's future performance [1]

Core Viewpoint - CleanSpark (CLSK) has been trending in stock searches, prompting analysis of factors influencing its future performance [1] Earnings Performance - Over the past month, CleanSpark shares have returned -6.1%, while the Zacks S&P 500 composite increased by +4.3% and the Zacks Financial - Miscellaneous Services industry gained +5.2% [2] - CleanSpark is expected to post earnings of $0.13 per share for the current quarter, unchanged from the previous year, with a consensus estimate change of +177.8% over the last 30 days [5] - The consensus earnings estimate for the current fiscal year is $0.58, reflecting a year-over-year change of +323.1%, with a recent change of +222.2% [5] - For the next fiscal year, the consensus earnings estimate is $0.88, indicating a +51.7% change from the previous year, with an 8.6% increase over the past month [6] Revenue Growth - The consensus sales estimate for the current quarter is $229.66 million, representing a year-over-year change of +105.4% [9] - For the current fiscal year, the sales estimate is $899.96 million, indicating a +137.5% change, while the next fiscal year estimate is $1.16 billion, reflecting a +28.7% change [9] Recent Results - CleanSpark reported revenues of $162.31 million in the last quarter, a +120% year-over-year change, with an EPS of -$0.07 compared to -$0.02 a year ago [10] - The reported revenues exceeded the Zacks Consensus Estimate of $152.71 million by +6.28%, and the EPS surprise was +12.5% [11] - Over the last four quarters, CleanSpark surpassed consensus EPS estimates twice and topped revenue estimates twice [11] Valuation Metrics - CleanSpark is graded F on the Zacks Value Style Score, indicating it is trading at a premium to its peers [15] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [13][14] Market Position - The Zacks Rank for CleanSpark is 3 (Hold), suggesting it may perform in line with the broader market in the near term [7][16]