CleanSpark Stock: Is The 13% Stock Surge Just The Beginning?

CleanSpark (NASDAQ: CLSK) saw its stock climb by 13% on June 24, 2025, after the bitcoin mining firm reached a 50 EH/s (Exahashes per second) hashrate milestone—a critical measure of computing power within the Bitcoin network. This achievement boosts the company’s ability to earn Bitcoin rewards. With ambitions to further scale operations to 60 EH/s, investors may question whether CLSK stock represents a compelling investment. Based on key operating and financial indicators, CleanSpark appears to be an appealing opportunity, with the potential for the stock to double. However, for those seeking growth with less volatility than a single stock, consider the High Quality portfolio, which has outperformed the S&P and delivered over 91% returns since inception. Also see – Should You Buy RKLB Stock At \$33?

Image by Bianca Holland from Pixabay\

Valuation Analysis

CleanSpark’s price-to-sales (P/S) ratio stands at 5.2, making it more expensive than the S&P 500’s ratio of 3.1. This higher valuation reflects the company’s strong revenue expansion in recent years. CleanSpark’s revenue has grown at an average annual rate of 79.9% over the past three years, well ahead of the S&P 500’s 5.5% rate. In the last 12 months, its revenue rose by 90.1%, from $283 million to $537 million. Its latest quarterly revenue jumped 62.5% year-over-year to $182 million from $112 million, handily surpassing S&P 500 growth rates. These robust figures support its premium valuation.

Profitability Assessment

Although CleanSpark reported an operating loss of $93 million over the past four quarters, resulting in a negative operating margin of -17.4%, its underlying profitability appears stronger when adjusting for non-cash items like impairment charges, depreciation and amortization (D&A), and stock-based compensation. These adjustments yield an adjusted EBITDA margin of 65% for 2024, highlighting solid profitability fundamentals.

Financial Stability

CleanSpark’s financial position is strong. The company reported $647 million in debt at the end of the most recent quarter and had a market cap of $2.8 billion as of June 24, 2025. This equates to a Debt-to-Equity Ratio of 23.1%, comparable to the S&P 500 average of 19.4% and comfortably within a healthy range. Additionally, CleanSpark holds $934 million in cash and equivalents out of $2.7 billion in total assets, resulting in a Cash-to-Assets Ratio of 35.1%.

Market Resilience and Risk Factors

Despite its strengths, CleanSpark’s stock has underperformed during broader market downturns. During the 2022 Inflation Shock, CLSK plummeted 95.6%, falling from $40.39 on January 7, 2021, to $1.78 on December 19, 2022, while the S&P 500 dropped 25.4%. The stock has yet to reclaim that high, peaking at $23.40 on March 25, 2024, and currently trading near $10.00. Similarly, in the 2020 COVID-19 crash, CLSK declined 80.0% from $5.25 on January 23, 2020, to $1.05 on April 2, 2020, versus the S&P 500’s 33.9% decline. It did, however, recover to its pre-crisis peak by July 22, 2020. Additionally, the stock’s performance remains closely tied to the highly volatile price of Bitcoin, posing further risk.

Investment Verdict

CleanSpark delivers strong growth, solid adjusted profitability, and excellent financial stability. Although the stock has shown limited resilience in downturns, its valuation appears reasonable given its performance. With an average analyst price target of $20, CLSK stock has a potential upside of 2x from current levels.

Nonetheless, investing in individual stocks carries inherent risk. For broader exposure with reduced volatility, the Trefis High Quality (HQ) Portfolio offers a diversified set of 30 stocks that have consistently outperformed the S\&P 500 over the past four years. Why? Because these stocks have delivered better returns with less volatility, as shown by HQ Portfolio performance metrics.

Invest with Trefis Market-Beating Portfolios

See all Trefis Price Estimates