Should You Buy CleanSpark Stock At $14?

CleanSpark stock (NASDAQ:CLSK) is experiencing a significant surge, climbing over 40% in a month. This rally follows the company’s report that it mined 38% more bitcoins in August. This success is tied to a notable increase in its operational hashrate, which hit 50 EH/s (Exahashes per second), a key metric for computing power in the Bitcoin network. The company reached this milestone in the month of June 2025.

The broader cryptocurrency market has also seen positive momentum. Other Bitcoin miners, like IREN and MARA, have recently posted gains. This positive trend is bolstered by the U.S. Federal Reserve’s decision to cut interest rates, with more cuts anticipated. Such policies are generally seen as favorable for cryptocurrencies. Given the positive outlook for Bitcoin in the near term, we expect Bitcoin mining companies to continue to grow.

A few months ago, we highlighted that the initial price increase in CLSK could be the start of a larger upward trend. Since then, the stock has risen more than 30%, and we continue to believe it is well-positioned for further growth.

In the following sections, we’ll dive into a deeper analysis of CLSK. We’ll compare its current valuation with its operational performance over recent years and examine its current and historical financial health. That being said, if you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio. It has comfortably outperformed its benchmark—a combination of the S&P 500, Russell, and S&P MidCap indexes—and has achieved returns exceeding 91% since its inception. Separately, see – CrowdStrike: What’s Happening With CRWD Stock?

Image by Bianca Holland from Pixabay\

How Does Cleanspark’s Valuation Look vs. The S&P 500?

Going by what you pay per dollar of sales or profit, CLSK stock looks slightly cheap compared to the broader market, especially when you take into account the kind of top line growth it has seen.

• Cleanspark has a price-to-sales (P/S) ratio of 6.3 vs. a figure of 3.2 for the S&P 500
• And, it has a price-to-earnings (P/E) ratio of 12.4 vs. the benchmark’s 24.0

How Have Cleanspark’s Revenues Grown Over Recent Years?

Cleanspark’s Revenues have grown considerably over recent years.

• Cleanspark has seen its top line grow at an average rate of 81.4% over the last 3 years (vs. increase of 5.3% for S&P 500)
• Its revenues have grown 85.1% from $341 Mil to $632 Mil in the last 12 months (vs. growth of 5.1% for S&P 500)
• Also, its quarterly revenues grew 90.8% to $199 Mil in the most recent quarter from $104 Mil a year ago (vs. 6.1% improvement for S&P 500)

How Profitable Is Cleanspark?

Cleanspark’s profit margins are much worse than most companies in the Trefis coverage universe.

• Cleanspark’s Operating Income over the last four quarters was $-104 Mil, which represents a very poor Operating Margin of -16.5% (vs. 18.6% for S&P 500)
• Cleanspark’s Operating Cash Flow (OCF) over this period was $-424 Mil, pointing to a very poor OCF Margin of -67.1% (vs. 20.3% for S&P 500)
• For the last four-quarter period, Cleanspark’s Net Income was $303 Mil – indicating a considerably high Net Income Margin of 48.0% (vs. 12.6% for S&P 500)

Does Cleanspark Look Financially Stable?

Cleanspark’s balance sheet looks very strong.

• Cleanspark’s Debt figure was $820 Mil at the end of the most recent quarter, while its market capitalization is $3.8 Bil (as of 9/18/2025). This implies a very strong Debt-to-Equity Ratio of 21.8% (vs. 20.9% for S&P 500). [Note: A low Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $916 Mil of the $3.1 Bil in Total Assets for Cleanspark.  This yields a very strong Cash-to-Assets Ratio of 29.5% (vs. 7.0% for S&P 500)

How Resilient Is CLSK Stock During A Downturn?

CLSK stock has fared worse than the benchmark S&P 500 index during some of the recent downturns. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last seven market crashes.

Inflation Shock (2022)

• CLSK stock fell 95.6% from a high of $40.39 on 7 January 2021 to $1.78 on 19 December 2022, vs. a peak-to-trough decline of 25.4% for the S&P 500
• The stock is yet to recover to its pre-Crisis high
• The highest the stock has reached since then is 23.40 on 25 March 2024 and currently trades at around $13.50

Covid Pandemic (2020)

• CLSK stock fell 80.0% from a high of $5.25 on 23 January 2020 to $1.05 on 2 April 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 22 July 2020

Putting All The Pieces Together: What It Means For CLSK Stock

In summary, Cleanspark’s performance across the parameters detailed above are as follows:

• Growth: Very Strong
• Profitability: Weak
• Financial Stability: Very Strong
• Downturn Resilience: Weak
• Overall: Strong

Overall, CleanSpark has performed well across the metrics we’ve analyzed. Given its moderate valuation, we believe the stock still has significant upside potential.

When we look at the competition, CleanSpark appears undervalued, trading at 6 times revenues. For example, IREN trades at 17 times its trailing revenue, MARA at 8 times, and RIOT at an impressive 11 times. In comparison, CleanSpark’s valuation is much lower, suggesting it could be poised for growth to catch up to its peers.

Now, of course, we could be wrong in our assessment, and investors might continue to value CLSK conservatively, especially considering its historical volatility, we think the long-term outlook is positive. For investors with a risk tolerance and a 3-to-5-year investment horizon, we continue to believe CLSK stock could deliver substantial returns.

While CLSK stock looks promising, investing in a single stock can be risky. On the other hand, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.

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