$CLSK Booming Bitcoin Bonanza
In April 2023, Bitcoin price exceeded $30 thousand for the first time since mid-2022, fulfilling crypto investors’ dreams of spring. The end of Crypto winter has left Bitcoin as a mere shell of what it once was, that said, spring is when young buds blossom into mighty trees. One such bud is CleanSpark, Inc. (NASDAQ: CLSK), which is a BTC miner that is expanding its operations amid Bitcoin’s recent surge. As things stand, CLSK stock is up 185.7% YTD and has the potential to further run thanks to its expansive endeavors. For this reason, CLSK stock could be one of the best Bitcoin miners to invest in this year.
CLSK Fundamentals
Looking to capitalize on Bitcoin’s boom, CLSK has engaged in a series of acquisitions and expansive purchases, the latest of which is the acquisition of two major facilities in Dalton Georgia, which started operations shortly after the purchase in late June. Currently, about 1.5 thousand machines are live which are currently contributing just under 1 EH/s – with an additional 4.5 thousand miners expected to commence operations in the coming weeks. Given its current 6.7 EH/s processing rate, this increase in production will likely assist CLSK in reaching its year-end target of 16 EH/s which is a major step towards profitability.
In addition to Dalton, CLSK is currently in the midst of another undertaking in Georgia. Currently, CLSK is expanding its Sandersville facility, which when completed will add over 6 EH/s to its mining operations. Based on these actions, CLSK is setting itself up to become one of the most successful Bitcoin miners.
BTC Halving
On April 26, 2024, BTC will be halved which is likely to cause the price of Bitcoin to rise – not immediately afterward. The significance of the halving lies in the fact that Bitcoin production will become a tedious task and the market’s supply will dwindle. CLSK’s actions take into account the halving process as by increasing its processing capacity it becomes capable of creating more BTC post-halving. Additionally, if CLSK starts stocking up on BTC pre-halving, it could potentially ride the post Bitcoin halving run which would likely increase its cash balance substantially causing CLSK stock to soar.
A Shift Away From Banking
Bearish banking indicators have bombarded the US populous, causing a shift away from traditional banking practices. Due to increasing interest rates and currency devaluation – inflation – many people have opted to utilize Bitcoin as an alternative to traditional banking. This mass migration of funds resulted in a 27% BTC run this past June.
That said, the Federal Reserve is planning on hiking interest rates two more times in 2023, resulting in the interest rate rising to 5.6%, which could cause a flock of financiers to shift their funds from traditional financial institutions to Bitcoin resulting in another run.
Moreover, the recent rise of BTC ETFs is a clear indication of the institutional legitimation of Bitcoin as a form of investment. Overall, the current economic ecosystem seems optimal for Bitcoin’s growth, which in turn could result in a major run for CLSK.
CLSK Financials
According to its Q2 2023 report, CLSK’s assets increased from $452 million at the beginning of the year to $531 million. Meanwhile, its cash balance halved from $20 million to $10 million. On the other hand, CLSK’s liabilities increased from $48 million to $57 million.
In terms of revenue, CLSK witnessed a YoY increase from $37.1 million to $42.5 million, while expenses almost doubled due to its expansion from $34.3 million to $60 million, resulting in its net loss skyrocketing from $171 thousand to $18.4 million.
Technical Analysis
CLSK stock is in a neutral trend and is trading in a sideways channel between $5.06, and $6.16. Looking at the indicators, the stock is currently above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is approaching overbought at 68 and the MACD is curling bearishly.
As for the fundamentals, the growing interest in Bitcoin as an alternative to traditional banking is a major catalyst for Bitcoin miners since they become more valuable when Bitcoin’s price increases. Considering CLSK’s recent acquisitions in Dalton, Georgia, and its plans to reach 16 EH/s by the end of the year, CLSK could be well-positioned to navigate through its business post Bitcoin halving – making it one of the Bitcoin miners to watch closely this year.
CLSK Forecast
Currently, CLSK is increasing its processing speed which is extremely promising since that indicates that it is prepping for the halving of BTC, and also because BTC might run in response to increasing interest rates this year. With the growing interest in Bitcoin as an alternative to the banking sector and Bitcoin’s ongoing surge, CLSK stock may be one of the best Bitcoin mining stocks to hold this year.
CLSK Fundamentals
Looking to capitalize on Bitcoin’s boom, CLSK has engaged in a series of acquisitions and expansive purchases, the latest of which is the acquisition of two major facilities in Dalton Georgia, which started operations shortly after the purchase in late June. Currently, about 1.5 thousand machines are live which are currently contributing just under 1 EH/s – with an additional 4.5 thousand miners expected to commence operations in the coming weeks. Given its current 6.7 EH/s processing rate, this increase in production will likely assist CLSK in reaching its year-end target of 16 EH/s which is a major step towards profitability.
In addition to Dalton, CLSK is currently in the midst of another undertaking in Georgia. Currently, CLSK is expanding its Sandersville facility, which when completed will add over 6 EH/s to its mining operations. Based on these actions, CLSK is setting itself up to become one of the most successful Bitcoin miners.
BTC Halving
On April 26, 2024, BTC will be halved which is likely to cause the price of Bitcoin to rise – not immediately afterward. The significance of the halving lies in the fact that Bitcoin production will become a tedious task and the market’s supply will dwindle. CLSK’s actions take into account the halving process as by increasing its processing capacity it becomes capable of creating more BTC post-halving. Additionally, if CLSK starts stocking up on BTC pre-halving, it could potentially ride the post Bitcoin halving run which would likely increase its cash balance substantially causing CLSK stock to soar.
A Shift Away From Banking
Bearish banking indicators have bombarded the US populous, causing a shift away from traditional banking practices. Due to increasing interest rates and currency devaluation – inflation – many people have opted to utilize Bitcoin as an alternative to traditional banking. This mass migration of funds resulted in a 27% BTC run this past June.
That said, the Federal Reserve is planning on hiking interest rates two more times in 2023, resulting in the interest rate rising to 5.6%, which could cause a flock of financiers to shift their funds from traditional financial institutions to Bitcoin resulting in another run.
Moreover, the recent rise of BTC ETFs is a clear indication of the institutional legitimation of Bitcoin as a form of investment. Overall, the current economic ecosystem seems optimal for Bitcoin’s growth, which in turn could result in a major run for CLSK.
CLSK Financials
According to its Q2 2023 report, CLSK’s assets increased from $452 million at the beginning of the year to $531 million. Meanwhile, its cash balance halved from $20 million to $10 million. On the other hand, CLSK’s liabilities increased from $48 million to $57 million.
In terms of revenue, CLSK witnessed a YoY increase from $37.1 million to $42.5 million, while expenses almost doubled due to its expansion from $34.3 million to $60 million, resulting in its net loss skyrocketing from $171 thousand to $18.4 million.
Technical Analysis
CLSK stock is in a neutral trend and is trading in a sideways channel between $5.06, and $6.16. Looking at the indicators, the stock is currently above the 200, 50, and 21 MAs which are bullish indications. Meanwhile, the RSI is approaching overbought at 68 and the MACD is curling bearishly.
As for the fundamentals, the growing interest in Bitcoin as an alternative to traditional banking is a major catalyst for Bitcoin miners since they become more valuable when Bitcoin’s price increases. Considering CLSK’s recent acquisitions in Dalton, Georgia, and its plans to reach 16 EH/s by the end of the year, CLSK could be well-positioned to navigate through its business post Bitcoin halving – making it one of the Bitcoin miners to watch closely this year.
CLSK Forecast
Currently, CLSK is increasing its processing speed which is extremely promising since that indicates that it is prepping for the halving of BTC, and also because BTC might run in response to increasing interest rates this year. With the growing interest in Bitcoin as an alternative to the banking sector and Bitcoin’s ongoing surge, CLSK stock may be one of the best Bitcoin mining stocks to hold this year.
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