Key Points
- CleanSpark’s Q1 earnings report shows 82% revenue increase, boosted by Bitcoin production and price rise.
- H.C. Wainwright’s senior crypto analyst, Mike Colonnese, reaffirms CleanSpark as the firm’s top pick in Bitcoin mining.
Mike Colonnese, a prominent crypto analyst at H.C. Wainwright & Co., has reiterated his firm’s preference for CleanSpark following the company’s impressive first-quarter earnings report.
Impressive Performance
CleanSpark, a Bitcoin mining company, announced its Q1 results, recording an 82% increase in revenue to $162.3 million. The rise in revenue was largely due to a 33% increase in Bitcoin production and a 37% rise in average Bitcoin prices.
During this period, CleanSpark managed to produce 1,945 BTC, a significant increase from the previous quarter’s 1,465 BTC. The company’s deployed hash rate also saw a 41.7% increase to 39.1 EH/s.
Future Prospects
Colonnese, in his research note, indicated that CleanSpark’s previous target of reaching 50 EH/s by June remains achievable. He also estimated that the company possesses $1.3 billion in total liquidity, comprising cash and Bitcoin, with less than $80 million in capital expenditures required for its expansion.
CleanSpark is also considered H.C. Wainwright’s top choice in the Bitcoin mining sector. The company’s management is expected to provide a year-end outlook soon, with performance likely to surpass current guidance.
The report characterized CleanSpark as one of the largest and last remaining pure-play Bitcoin miners in the industry, supported by a top-tier management team.
H.C. Wainwright retained a Buy rating on CleanSpark’s stock, with a steady $27 price target. This valuation is calculated based on an 8.5x enterprise value-to-revenue multiple, using 2025 revenue estimates of $961.2 million.