Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 7 Feb, 25 | CLSK | Speculative Buy | USD 11.79 | USD 12.75 | USD 13.5 | 13 days | 14.5% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
CleanSpark, Inc. operates as a bitcoin miner in the Americas. It owns and operates data centers that primarily run on low-carbon power. Its infrastructure supports Bitcoin, a digital commodity and a tool for financial independence and inclusion. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.
Revenue Growth: CleanSpark reported $162.3 million in quarterly revenue, reflecting a 120% increase compared to the same period in the previous year ($73.8 million).
Bitcoin Treasury Growth: The company grew its bitcoin holdings to over 10,500 BTC, valued at $929.1 million, all of which was self-mined in the U.S.
Increased Long-Term Debt: CleanSpark’s total long-term debt stands at $641.4 million, which could be a financial burden in the long run despite its strong balance sheet.
High Marginal Cost to Mine: The company’s marginal cost to mine a bitcoin was approximately $34,000, which could become a concern if bitcoin prices drop significantly.
CleanSpark faces key investment risks, including high marginal bitcoin mining costs ($34,000 per BTC), potential bitcoin price volatility, increasing long-term debt ($641.4 million), and execution risks associated with its aggressive expansion strategy.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 11.79 | 10.2 | 12.75 | 13.5 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
Cleanspark's stock price is currently hovering near important support levels, indicating a potential for a near-term upward move. This pattern suggests that the stock may continue to rise. The next significant resistance level appears to be at USD 11.99, which prices may test in the short term (2-4 weeks). Additionally, a further move above USD 8.38 could trigger increased buying activity for the stock.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the leading indicator, the 14-period Relative Strength Index (RSI), is currently positioned below the midpoint but could indicate an upward movement soon. Additionally, trading volumes appear to support a potential rise. Furthermore, prices are trading below the trend-following indicators, specifically the 21-period and 50-period simple moving averages (SMAs), suggesting they may reclaim these levels in the near term.
As per the above-mentioned price action and technical indicators analysis, CleanSpark Inc. is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock at the current market price of 11.79 as on 07 February, 2025 at 06:47 AM PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Financial Services Industry: Capital Markets
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CLSK CleanSpark Inc |
0.60 9.00% | 7.33 | - | 1250.00 | 9.74 | 1.89 | 7.51 | 194.54 |
| MS Morgan Stanley |
-0.64 0.55% | 116.03 | 16.50 | 13.76 | 2.80 | 1.65 | ||
| SCHW Charles Schwab Corp |
-0.92 1.18% | 77.36 | 22.86 | 17.39 | 6.14 | 4.28 | ||
| GS Goldman Sachs Group Inc |
2.34 0.43% | 548.63 | 18.44 | 10.60 | 2.83 | 1.16 | ||
| CIIHY CITIC Securities Co Ltd ADR |
- -% | 25.50 | 15.86 | 7.89 | 0.98 | 1.07 | 10.27 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 07,2025 at 06:47 AM PST. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2023 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
