CleanSpark Reports Q1 Earnings Miss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy CLSK?
Source: seekingalpha
- Earnings Miss: CleanSpark's Q1 GAAP EPS of -$1.35 fell short by $1.10, indicating significant challenges in profitability that could undermine investor confidence and affect stock performance.
- Revenue Growth Lags: The reported revenue of $181.2 million, while up 11.6% year-over-year, missed expectations by $6.53 million, suggesting that despite year-over-year growth, the company failed to meet market forecasts, potentially putting pressure on its stock price.
- Bitcoin Production Decline: CleanSpark produced fewer bitcoins in January, highlighting operational efficiency issues in the current market environment, which may impact future profitability and competitive positioning.
- Cautious Market Reaction: Following the earnings miss and decline in bitcoin production, the market is adopting a cautious stance towards CleanSpark's future performance, leading investors to reassess their strategies and potentially increasing stock price volatility.
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Analyst Views on CLSK
Wall Street analysts forecast CLSK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CLSK is 23.50 USD with a low forecast of 14.00 USD and a high forecast of 27.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 8.265
Low
14.00
Averages
23.50
High
27.00
Current: 8.265
Low
14.00
Averages
23.50
High
27.00
About CLSK
CleanSpark, Inc. is a bitcoin mining company. The Company independently owns and operates data centers across the United States with locations in Georgia, Mississippi, Tennessee and Wyoming for a total contracted power capacity of approximately 853 megawatts (MW). The Company designs its infrastructure to responsibly secure and support the bitcoin network. Its operating mining units are capable of producing over 40 exahashes per second (EH/s) of computing power. The Company operates approximately 188,500 bitcoin mining machines, with a hashrate capacity of approximately 27.6 EH/s and a fleetwide efficiency of 21.94 joules per terahash (J/TH). The Company's subsidiaries include ATL Data Centers LLC, CleanBlok, Inc., CleanSpark DW, LLC, CleanSpark GLP, LLC, CSRE Properties Washington, LLC, CSRE Properties Dalton, LLC, CSRE Property Management Company, LLC, and CSRE Properties Norcross, LLC, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
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CleanSpark's Q1 Revenue Misses Analyst Expectations
- Quarterly Revenue Growth: CleanSpark reported Q1 revenue of $181.2 million, reflecting an 11.6% year-over-year increase, yet falling short of the analyst estimate of $187.73 million, indicating competitive pressures in the market.
- Asset and Liability Overview: As of the end of the quarter, the company held total assets of $3.3 billion, including $1 billion in bitcoin and $867.4 million in mining assets, showcasing its significant investment in the cryptocurrency sector.
- Widening Core Losses: The company reported an adjusted core loss of $295.4 million, a stark contrast to the $321.6 million profit recorded in the same period last year, and significantly below Wall Street's expectation of $70.44 million profit, highlighting a severe deterioration in profitability.
- Market Sentiment Shift: On Stocktwits, retail sentiment around CLSK stock shifted from 'bearish' to 'extremely bearish', with message volume increasing from 'low' to 'high', reflecting growing investor concerns about the company's future performance.
See More
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- Financial Loss: CleanSpark reported a loss of $378.7 million in its fiscal Q1 2023, translating to a per-share loss of $1.35, which did not meet Wall Street expectations, indicating significant financial strain in the current market environment.
- Adjusted Loss: After accounting for non-recurring costs and asset impairments, the adjusted loss was $0.10 per share, which was worse than the analysts' forecast of $0.08 per share, highlighting ongoing challenges in the company's profitability.
- Revenue Shortfall: The company generated revenue of $181.2 million during the quarter, falling short of the $185.1 million expected by analysts, suggesting that weak market demand may have impacted sales performance.
- Market Expectations Missed: Given that the financial results did not align with analyst expectations, CleanSpark's stock price may face downward pressure, leading investors to question the company's future profitability and market strategies.
See More
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- Dow Jones Milestone: The Dow Jones Industrial Average surpassed the 50,000 mark for the first time, reflecting renewed investor confidence in technology and semiconductor stocks, which may drive future investment enthusiasm.
- Tech Stock Recovery: Despite a severe selloff in software and AI-related stocks leading to one of the sharpest pullbacks in years, the market's rebound before the weekend indicates sustained investor interest in tech stocks, potentially boosting earnings for related companies.
- Improved Market Breadth: Financials, industrials, and select consumer names joined the rally, indicating improved market sentiment, while Bitcoin's rebound also lifted crypto-linked stocks, showcasing investors' preference for diversified investments.
- Analysts Warn of Volatility: Despite a strong market finish, analysts caution that volatility remains high, urging investors to closely monitor upcoming earnings reports and Federal Reserve policy signals to assess the sustainability of massive AI spending.
See More
Hut 8 Mining Stock Rises on Bitcoin Rebound
- Bitcoin Rebound: Bitcoin's price rebounded by 7% to the $68,000 level after a sharp decline, directly driving Hut 8 Mining's stock rise, indicating a restoration of market confidence in cryptocurrencies.
- Stock Performance: Hut 8 Mining's shares surged 8.86% to $48.42 on Friday, reflecting investor optimism regarding the crypto market recovery and demonstrating the company's strong performance among its peers.
- Market Dynamics: Despite a severe downturn earlier this week that led to double-digit losses for many crypto-related stocks, Hut 8 successfully capitalized on the positive sentiment surrounding Friday's market rebound, showcasing its resilience in a volatile environment.
- Industry Comparison: Hut 8 Mining's stock has increased by 131.99% over the past year, significantly outperforming the average peer performance of just 6.65%, highlighting its dominant position and the substantial gap established with competitors.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives on their future performance, which could influence investor decisions and market sentiment.
- AMZN Stock Outlook: Analysts' opinions on Amazon (AMZN) stock indicate mixed views on its future growth potential, prompting investors to pay close attention to the latest ratings and recommendations when considering purchases.
- Impact of Rating Changes: Upgrades and downgrades from analysts can lead to stock price volatility, necessitating that investors closely monitor these changes to timely adjust their investment strategies and optimize their portfolios.
- Market Sentiment Reflection: Changes in analyst ratings not only affect individual stock performance but can also impact overall market sentiment, urging investors to consider these factors comprehensively for informed investment decisions.
See More
CleanSpark Q1 2026 Earnings Call Insights
- Revenue and Margin Changes: CleanSpark reported over $180 million in revenue for Q1, despite a $43 million decline quarter-over-quarter primarily due to Bitcoin price volatility and rising network difficulty, with gross margins decreasing from 57% to 47%, reflecting market challenges.
- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
- Capital Operations and Share Buybacks: CleanSpark completed a $1.15 billion convertible offering and repurchased $460 million in shares, bringing total buybacks to over $600 million since December 2024, reducing outstanding shares by approximately 20%, thereby enhancing shareholder value.
- Future Outlook and Market Demand: Management expects to shift from portfolio formation to commercialization milestones, emphasizing that the AI data center business will provide stable cash flows and high margins, and remains confident in signing contracts despite Bitcoin market volatility.
See More
CleanSpark's Q1 Revenue Misses Analyst Expectations
- Quarterly Revenue Growth: CleanSpark reported Q1 revenue of $181.2 million, reflecting an 11.6% year-over-year increase, yet falling short of the analyst estimate of $187.73 million, indicating competitive pressures in the market.
- Asset and Liability Overview: As of the end of the quarter, the company held total assets of $3.3 billion, including $1 billion in bitcoin and $867.4 million in mining assets, showcasing its significant investment in the cryptocurrency sector.
- Widening Core Losses: The company reported an adjusted core loss of $295.4 million, a stark contrast to the $321.6 million profit recorded in the same period last year, and significantly below Wall Street's expectation of $70.44 million profit, highlighting a severe deterioration in profitability.
- Market Sentiment Shift: On Stocktwits, retail sentiment around CLSK stock shifted from 'bearish' to 'extremely bearish', with message volume increasing from 'low' to 'high', reflecting growing investor concerns about the company's future performance.
See More
CleanSpark Reports $378.7 Million Loss in Q1
- Financial Loss: CleanSpark reported a loss of $378.7 million in its fiscal Q1 2023, translating to a per-share loss of $1.35, which did not meet Wall Street expectations, indicating significant financial strain in the current market environment.
- Adjusted Loss: After accounting for non-recurring costs and asset impairments, the adjusted loss was $0.10 per share, which was worse than the analysts' forecast of $0.08 per share, highlighting ongoing challenges in the company's profitability.
- Revenue Shortfall: The company generated revenue of $181.2 million during the quarter, falling short of the $185.1 million expected by analysts, suggesting that weak market demand may have impacted sales performance.
- Market Expectations Missed: Given that the financial results did not align with analyst expectations, CleanSpark's stock price may face downward pressure, leading investors to question the company's future profitability and market strategies.
See More
