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CleanSpark (CLSK) Valuation Check After Bitcoin Rebound And AI Data Center Leasing Plans

Simply Wall St · 2d ago

CleanSpark (CLSK) is back in focus after a sharp move alongside recovering Bitcoin prices, with traders watching closely for its December production update and fresh details on potential data center leasing for AI and cloud workloads.

See our latest analysis for CleanSpark.

The recent swing in CleanSpark’s share price has been driven largely by Bitcoin’s rebound and interest in its AI and cloud leasing options. The 7 day share price return of 18.04% contrasts with a 90 day share price return of a 35.19% decline, while the 3 year total shareholder return is roughly 5x even though the 5 year total shareholder return is negative. This suggests momentum has picked up again in the short term after a tougher stretch.

If you are watching how Bitcoin exposed names are moving, it could be a good moment to scan for other high growth tech and AI opportunities through high growth tech and AI stocks.

With CleanSpark trading at US$12.30, showing a 3 year total shareholder return of about 4x but a 5 year total shareholder decline of roughly 66%, the key question now is whether today’s price reflects underappreciated upside or whether the market is already baking in future growth.

Most Popular Narrative Narrative: 46.9% Undervalued

With CleanSpark last closing at US$12.30 and the most followed narrative pointing to a fair value of about US$23.16, there is a clear gap between the current share price and what that narrative models as justified by future earnings and cash flows.

The analysts have a consensus price target of $20.159 for CleanSpark based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $25.0, and the most bearish reporting a price target of just $15.0.

Read the complete narrative.

Curious what kind of revenue ramp, margin profile, and future P/E multiple need to line up to back that fair value? The narrative leans heavily on faster top line growth, a thinner profit margin, and a higher earnings multiple than today to reconcile the discount rate and projected earnings with that valuation. Want to see how those moving pieces fit together in the model?

Result: Fair Value of $23.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, the whole setup still hangs on volatile Bitcoin economics and heavy capital spending for AI data centers, so weaker pricing or slower lease up could quickly challenge this upbeat view.

Find out about the key risks to this CleanSpark narrative.

Build Your Own CleanSpark Narrative

If you look at the numbers and come to a different conclusion, or just prefer to test your own assumptions, you can map out a custom thesis in a few minutes with Do it your way.

A great starting point for your CleanSpark research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If you are weighing your next move, do not stop with a single stock when a broader watchlist could highlight opportunities you might otherwise miss.

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.