Summary CleanSpark has surged 40% in two months, reaching my prior $15 target, yet momentum remains strong with new $100M credit for HPC expansion. CLSK's pivot to high-processing computing diversifies revenue, reduces Bitcoin dependency, and positions the company for growth in the booming cloud computing market. Recent results show 90% YoY revenue growth, strong profitability, and continued mining expansion, while favorable crypto seasonality and pro-crypto policies provide tailwinds. I raise my 12-month price target to $18, citing CLSK's discounted valuation, management execution, and strategic moves into HPC and crypto treasury growth. Following my last article on Cleanspark (CLSK), the stock price appreciated by roughly 40%. This underscores significant gain over about two months, highlighting broader market outperformance. The stock price achieved $15.37 on October 1st, reaching my 12-month price target of $15.00 in 9 weeks. CLSK: 37% Upside In Two Months (Seeking Alpha) Nevertheless, I think the momentum may continue with the company's announcement of expanding by an additional $100 million credit capacity to scale in Bitcoin mining operations and investing in high-performance computing. The market rewarded legacy Bitcoin miners — IREN and CIFR — which pivoted focus from solely mining operations to the HPC segment. Iris Energy increased by more than 500% , while Cipher Mining surged by more than 250% over the past 12 months. I don't think you can fully compare these companies on a one-to-one basis, or expect the same outcome, but I believe CleanSpark's management pivot to diversify in HPC operations was the right decision to make, reducing dependency on Bitcoin cyclicality, broadening operations, and positioning in a high-growth cloud computing market. I believe the market may reward CLSK with a higher premium because of these structural changes, and I don't think this is priced in yet. My bullish thesis remains unchanged; it remains as a Strong Buy, but I raise the 12-month price target from $15 to $18, justified by a more diversified business model, phenomenal execution from management, supported with adaptivity to market demand, and reduced dependency on Bitcoin, which weighs on the stock price. FQ3 2025 Snapshot: Strong Beat On The Bottom Line, 90% YoY Revenue Growth, And Continued EH/s Expansion On August 7, the company posted FQ3 2025 results. This was a strong quarter for the company, underscoring a well-run business, stability in operations, and significant improvement on a year-over-year basis, increasing investor confidence. Although I estimated higher results in my previous article, they were suppressed by higher-than-anticipated depreciation and amortization costs and interest expense. Regardless, the company posted roughly $199 million in revenue, highlighting about a 90% increase on a year-over-year basis, and underscoring $1.7 million miss on the top-line versus analysts' estimates (0.85% surprise). The bottom line came in at $0.78, a substantial improvement from negative $1.03 in the same quarter last year, and $0.28 above analysts' expectations (36% surprise). CLSK: Investor Presentation August 2025 (CleanSpark Investor Relations) In the August 2025 investor presentation , the company highlighted $44,806 cost to mine, which, although increased from a roughly $43,000 estimate in the May 2025 presentation, still appears to be compelling and underlines well-positioning in the Bitcoin miner landscape. This also justifies the thesis of the company being profitable, which should help accelerate further growth in both mining and high-processing computing operations. On September 3 , the company disclosed its most recent Bitcoin mining update and underlined that it has achieved 12,827 BTC in its treasury. The Bitcoin mining company favors an operational approach to expand their BTC holdings rather than raise funds via debt instruments, which I think is the rational thing to do. Why would you buy BTC at the market price if your cost to mine allows you to acquire it at a significantly lower cost? CLSK: Continued Bitcoin Mining Expansion (CleanSpark Investor Relations) CleanSpark also highlighted that they expect to upgrade their mining fleet and fuel ongoing expansions. Although they haven't mentioned a specific estimate timewise, CLSK plans to onboard additional power capacity and increase 10 EH/s of incremental hashrate. This supports a bullish stance for the company, as it is positioning itself to benefit from an appreciated Bitcoin price, while mining at substantially lower costs. Pro-Crypto Administration, Favorable Bitcoin Seasonality, And Pivoting To HPC There are key tailwinds, which may result in a further stock price appreciation for CleanSpark. The current administration is pro-crypto, which helps establish more clearer regulatory framework, and improve sentiment in the landscape. On July 18, 2025, the US president signed the GENIUS Act, establishing a Federal regulatory system for stablecoins. I believe this will significantly contribute to the faster adoption of crypto assets. Based on the report , only 28% of adults in the US own cryptocurrencies, yet the number has almost doubled from 15% in 2021. This implies that with more people adopting cryptocurrencies and equities with exposure to the crypto industry, it may fuel the appreciation of the underlying assets, and CLSK may significantly benefit from it. The miner has a substantial BTC treasury, and if the company continues to mine Bitcoin at approximately the current costs, the appreciation in the underlying may significantly improve margins. The table below indicates that Q4 is a favorable season for Bitcoin. Historically, this crypto asset has appreciated by 79% on average since 2013, with roughly 48% appreciation on median terms. This highlights significant tailwinds tied to favorable BTC seasonality, which could boost the crypto prices and improve the sentiment of equities with crypto exposure. CleanSpark trades at a forward P/E of roughly 9.55 (GAAP), implying more than 3x discount to peers of 33, and could experience significant upside if crypto sentiment improves. CLSK: Favorable Bitcoin Seasonality (Coinglass.Com) I also think that a pro-crypto administration supports the likelihood of a positive Q4 for the crypto landscape. Such regulatory acts, as GENIUS, highly contribute to a favorable environment, as it indicates investors shouldn't expect any significant obstacles for further crypto adoption. Furthermore, there are more and more Bitcoin treasury companies, which are providing a floor price for the underlying asset and continuously expanding their portfolios. This highly contributes to a favorable Q4 thesis, and CLSK is well-positioned to benefit from the crypto appreciation. CleanSpark is also the 9th company in the list based on the total HODL, compared to other public companies following the BTC treasury capital strategy. Given its recent announcement, CleanSpark is no longer a pure Bitcoin miner. The company decided to partially pivot to the HPC landscape, which currently experiences significant demand. The global HPC market was valued at $57 billion in 2024 and is expected to increase to about $87 billion by 2030. This implies a 7.2% CAGR and supports the bullish narrative for the stock. CLSK Performance Compared To IREN And CIFR (Seeking Alpha) The chart above indicates the stock price comparison of CLSK, IREN, and CIFR. As it reveals, those stocks were highly correlated until both IREN and CIFR pivoted to the HPC industry. Since then, both of the names significantly outperformed CleanSpark, although it has appreciated by nearly 70% over the past 12 months. Now it doesn't mean that CLSK will experience such a drastic move to the upside — but it supports the bullish stance, and shows that the market sees diversification to HPC as highly favorable for legacy Bitcoin miners. Given the tailwinds, I think CleanSpark may experience stock appreciation in the following months and outperform the benchmark. The current environment appears to be favorable for equities with exposure to crypto. I think CLSK may appear compelling for long-term investors who seek to diversify in a high-growth name with increased focus on the global HPC market. 3x Undervaluation To Peers, Despite 70% 12-Month Rally CleanSpark trades at a forward P/E of 9.55 (GAAP), which appears to be more than 3x below the sector median of 33.07. This highlights significant undervaluation, despite the company rallying about 70% over the past 12 months. This suggests that if the company continues to execute, there is room for multiple expansions. CLSK: Net Income (TTM) (YCharts) I kindly invite you to read a more in-depth valuation analysis in the previous article , yet I would like to highlight a few important traits here. The company trades at a forward EV/EBITDA of 8.40, indicating a roughly 46% discount to peers of 15.58. The forward Price/Book at 2.20 highlights more than 2x undervaluation versus the sector median of 4.52. This supports my thesis that the market has not yet priced in their pivot to HPC, and if the company continues to execute well, the market may reward them with multiple expansions. CLSK remains a high-growth name, underscoring about 85% revenue growth over the past 12 months, substantially above the sector median of 7%. The EBITDA grew by 173%, and EBIT by 533% over the past year, representing a significant advantage compared to the peers of 10% and 12% growth, respectively. This also supports the bullish narrative for the company, and the market may reward phenomenal growth with a higher premium. CleanSpark is a high-quality Bitcoin miner that operates at above-market margins. The gross profit margin (TTM) of 52% appears to be roughly 5% higher than peers of 50%, and the net income margin (TTM) of 48% underscores roughly 10x outperformance versus the sector median of 4%. On the downside, the Bitcoin miner appears to be a medium-leveraged business with total obligations of $820 million . This is significant and resulted in $3.5 million in interest expense last quarter. CLSK: Capital Structure (Seeking Alpha) However, I think this could also act as a short-term tailwind for the stock. The Fed is expected to reduce interest rates by two additional 0.25% cuts by the end of the year. If this materializes, the company may be able to refinance its obligations on more favorable conditions that could lead to lower interest expense. This could meaningfully help bottom-line growth. Overall, CleanSpark trades at a significant discount to peers. The company operates at above-market margins and grows its top line at an impressive pace. Management decided to expand into the high-demand HPC market, which supports the bullish stance for the miner, justified by diversification, reducing dependency on Bitcoin volatility, and following other legacy miners, which were significantly rewarded by the market. This does not guarantee success. The company also appears to be medium-leveraged with significant obligations that could weigh on the stock price. Nevertheless, management does an excellent job by improving low-cost Bitcoin mining operations, increasing their BTC treasury, and now pivoting to the high-demand AI-driven HPC landscape, which could unlock a new growth catalyst for the stock. Wall Street forecasts $1.53 in FY2025 EPS. I think this is a reasonable estimate. If the BTC price continues to appreciate and follows the seasonality, the company is well-positioned to beat the estimate. Nevertheless, it falls between the lower end of the estimates range of $1.15 to $2.57, indicating that more analysts lean toward a conservative approach. CLSK: EPS Estimate (Seeking Alpha) I favor that too, as it leaves more room for error. Regardless, I think that $1.53 EPS is likely, and that would put the stock price at 9.55x earnings multiple. Given the analysis, it appears that the market has not yet priced in its pivot to HPC. AI names are usually rewarded with a higher premium and significant discount to peers, which implies that the company may experience upside with improved sentiment. If we apply a 12x earnings multiple, which would still be roughly 2.8x below the sector median of 33x, and almost 2x below the average company in the S&P 500 at 23x , to FY2025 EPS of $1.53, we come in at my price target of $18. I think this is a reasonable estimate, which appears to be conservative, but also justifies the possibility of the stock price appreciation further. I think CLSK is an interesting opportunity for investors seeking exposure in the HPC market. This is a volatile, high-growth name, but it is tied to multiple tailwinds that could drive the stock price further. Risks And Concerns There are other risks and concerns tied to CleanSpark, which were not mentioned in my previous analysis. I think the main concern relates to CLSK's pivot to the HPC landscape. This shift toward AI demand may be appreciated by the market, but there are a lot of uncertainties about the move. It is not certain whether this is going to be a significant pivot; what are the revenue projections from HPC-related activities, and how fast CLSK can scale into the industry? Until those appear clearer, it is likely that CLSK may not be rewarded with a significant premium. Although there are tailwinds tied to favorable seasonality, this may not result in substantial crypto appreciation over the next few months. If Bitcoin performs weaker-than-anticipated in the last quarter of the year, sentiment may shift, which could weigh on CleanSpark and continue trading at a significant discount. If none of the above risks and concerns materialize, it appears CLSK is well-positioned to benefit from crypto tailwinds and AI-driven HPC demand. I think this could lead to the repricing of the stock at a higher multiple, which may result in an appreciation in the stock price. Conclusion: HPC Pivot May Unlock A New Revenue Growth Catalyst I believe CleanSpark offers a compelling opportunity for long-term investors who seek to diversify in a high-growth name, tied to AI demand, at undervalued levels. Although the stock price has increased roughly 70% over the past year, it appears to be trading at a significant discount versus peers, which supports the bullish outlook. I think that Bitcoin miners' pivot to HPC was the right decision, but it is tied to execution risks. The company appears to be medium-leveraged, which could weigh on the stock price, but I think its tailwinds substantially overtake risks and concerns. Other miners who shifted to HPC were rewarded with significant upside, yet it does not mean CLSK will face the same success. However, with this strategic move, the company diversifies its business, reduces dependency on Bitcoin volatility, which deserves a higher premium. My bullish thesis is unchanged. I think CleanSpark is a Strong Buy, with an $18 price target over the next 12 months, implying roughly 24% upside and broader market outperformance. 12 Wall Street analysts forecast a $20 12-month price target, suggesting roughly 38% upside. This is definitely a possibility, but I favor a conservative approach, which leaves me room for error.
