Monday, August 30, 2021 12:23:55 PM
CleanSpark, Inc. (NASDAQ: CLSK)
30 August 2021
Key Points
• Management believes CleanSpark is currently trading at a steep discount to bitcoin mining comparables (2.2x forward revenue vs. 5.7x industry average). Bitcoin is a commodity, yet CleanSpark is not getting credit for its mining operation that is profitable at price levels above ~$6,000 per bitcoin and contributes ~85% margins to CleanSpark’s bottom-line.
• The company believes the disconnect lies in the legacy energy business that receives a lower multiple than pure play bitcoin miners due to its much lower ~15% margins and slower growth rate.
• CleanSpark believes it has a competitive moat compared to other bitcoin miners as it owns ~85% of its production capacity compared to peers who mainly rely on third-party data centers.
• The use of “outsourced” data centers reduces mining margins and creates additional risks as any downtime equates to lost bitcoin, plus CleanSpark retains the real estate value, which could increase over time as demand grows from exited Chinese miners getting their rigs back online in the US.
• CleanSpark also controls its own power supply with 50 MW of capacity secured and energy prices below 2.85 cents per kWh. Furthermore, the company mines with ~95% low-carbon energy today, unlike most miners, and is focused on getting to 100% low-carbon energy.
• As of August 17, 2021, CleanSpark’s hashrate capacity exceeded 820 PH/s or 6-7 bitcoins per day, an increase of ~100% from 46 days ago.
• Management expects bitcoin mining revenue to contribute $38-48 million in FY21. With an FY22 production target of 3.2 EH/s, annualized bitcoin mining revenue could exceed $325 million, assuming the production of 25-28 bitcoins per day and a price of $35,000+ per bitcoin.
Our prior content on CLSK can be accessed HERE.
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Recent CLSK News
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 08:08:59 PM
- CleanSpark to Acquire 75 MW of Bitcoin Mining Sites in Wyoming for $18.75 Million • PR Newswire (US) • 05/09/2024 08:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 01:10:52 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 01:05:13 PM
- CleanSpark Reports Second Quarter FY2024 Financial Results • PR Newswire (US) • 05/09/2024 01:00:00 PM
- U.S. Index Futures Dip, Bank of England Holds Interest Rates at 5.25% • IH Market News • 05/09/2024 11:47:20 AM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 05/09/2024 11:10:02 AM
- CleanSpark Names Chief Operating Officer and Chief Technology Officer • PR Newswire (US) • 05/08/2024 01:00:00 PM
- Bitcoin Surges Post Jobs Report, Coinbase Reveals $1.2 Billion 1Q Net Profit, and More Crypto News • IH Market News • 05/03/2024 07:26:30 PM
- CleanSpark Releases April 2024 Bitcoin Mining Update • PR Newswire (US) • 05/02/2024 01:00:00 PM
- CleanSpark Executives to Discuss Fiscal Second Quarter 2024 Financial Results • PR Newswire (US) • 04/24/2024 01:00:00 PM
- OKX Introduces X Layer for Scaling ETH, GBTC Holdings Halve Post-Launch, and More Crypto News • IH Market News • 04/16/2024 05:48:05 PM
- Aptos Declines Ahead of Token Unlock, Hong Kong Nears Approval of Crypto ETFs, and More Updates • IH Market News • 04/12/2024 06:14:12 PM
- CleanSpark Exceeds 17 EH/s, Exercises and Upgrades Previously Announced Option for 100,000 Bitcoin Mining Machines • PR Newswire (US) • 04/12/2024 01:00:00 PM
- CleanSpark Releases March 2024 Bitcoin Mining Update • PR Newswire (US) • 04/01/2024 11:00:00 AM
- Crypto: Bitcoin ETFs Experience 3 Consecutive Days of Outflows, CryptoPunk Fetches $16.42M in Sale, and More • IH Market News • 03/21/2024 07:17:25 PM
- CleanSpark Releases February 2024 Bitcoin Mining Update • PR Newswire (US) • 03/01/2024 02:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 02:43:04 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 02:39:47 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 02/28/2024 02:37:06 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/27/2024 09:58:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/27/2024 09:55:20 PM
- CleanSpark Exceeds 15 EH/s, Completes Acquisition of Mississippi Bitcoin Mining Data Centers • PR Newswire (US) • 02/27/2024 02:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/16/2024 07:13:06 PM
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