CleanSpark (CLSK): Future Growth and Stock Outlook in BTC Mining

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

Bitcoin and other virtual currencies and crypto assets are once again coming back to life after a long period of stagnation.

Personally, I have only purchased and held a small amount of bitcoin in the past, but I have been looking at the potential of digital assets as a steady means of asset protection, as opposed to a transient boom or bubble.

However, the uncertainty and complexity of the taxation of bitcoin profits in Japan has created hesitation toward full-fledged shi.

However, as an investment strategy, instead of investing directly in gold, he began to benefit from the rising gold price by holding gold mining stocks,Consider investing in mining companies instead of investing directly in bitcoinI am doing this.

This approach is an attractive option for me because it is easy to understand as part of investing in U.S. stocks.

Therefore, we would like to conduct an in-depth study of the potential value and investment opportunities among bitcoin mining companies, with a particular focus on CleanSpark.

What kind of company is Clean Spark (CLSK)?

CleanSpark, Inc. is an American company specializing in bitcoin mining and energy technology.

About Us

• Company Name:CleanSpark, Inc.
• Year of establishment: April 1, 19491987
• Headquarter Location: Tokyo, JapanHenderson, Nevada
• Founder:.Irwin M. Jacobs and Andrew Viterbi
• CEO:Mr. Zachary K. Bradford
• Listed on NASDAQ CLSK

What is CleanSpark's main business?

The main business activities of Clean Spark (CLSK) are as follows

Bitcoin Mining

Clean Spark's main business is bitcoin mining.
The company owns and operates a data center that uses low-carbon energy and mines bitcoin. Through this business, the company aims to support bitcoin security and blockchain technology.

Clean Energy and Sustainability

Clean Spark is,The focus is on clean energy and sustainability.
By utilizing low-carbon energy sources such as wind, solar, nuclear, and hydroelectric power, the project aims to minimize its impact on the environment.

Energy Technology Development

CleanSpark is also committed to developing energy technologies through energy-efficient mining operations and investments in renewable energy sources.

Through these ventures, CleanSpark aims to support financial independence and inclusion and promote abundant and affordable clean energy.
It also identifies bitcoin mining as an area of innovation and aims to establish leadership in this area.

What is CleanSpark's business model?

CleanSpark's business model focuses on the integration of bitcoin mining and clean energy. Below are its key elements.

• CleanSpark generates revenue by mining bitcoin. The company uses highly efficient mining equipment to provide the computational processes that maintain the bitcoin blockchain.
  New bitcoins generated by mining and transaction fees earned from the mining process will be the source of revenue.
• Clean spark is when bitcoin mining is performed,The company actively uses low-carbon energy sources to achieve energy-efficient mining with minimal environmental impact.
• The latest technologies and methods are employed to optimize energy efficiency. This includes selecting mining equipment, improving operational efficiency, and implementing energy management systems.
• In addition to pursuing a sustainable business model, CleanSpark will also focus on community outreach, which will include investing in clean energy and building partnerships with local communities.

These business models allow CleanSpark to be competitive in the bitcoin mining arena while emphasizing environmental stewardship and sustainability.
Also,As Bitcoin grows as a digital asset, its business could also expand.

What's so great about CleanSpark?

To summarize what makes Clean Spark particularly noteworthy,

Clean Spark is,Played a key role in the bitcoin mining industry, using low-carbon energy for efficient mining and pursuing a sustainable business modelThe company is doing so. In addition, financial results for FY2023 increased by 281 TP3T over the previous year, and bitcoin production doubled.

CleanSpark is positioned as an innovative and sustainable company in the bitcoin mining industry, aiming for future growth and leadership within the industry by balancing environmental concerns with efficient business operations.

What exactly is bitcoin mining?

Bitcoin mining is the process of generating new bitcoins, verifying transactions, and maintaining the blockchain.
The specific process of bitcoin mining is as follows.

• Transaction validation:.The first step in bitcoin mining is to verify the transactions made on the network.
  *A transaction is a transfer or payment made on the bitcoin network, which is permanently recorded in the bitcoin blockchain.
  Miners verify that transactions made by bitcoin users are valid and collect them into a transaction pool.
• Create new block:.The verified transactions are combined into a new block. This block contains multiple transactions and a hash (unique identifier) of the previous block.
• Proof-of-Work Calculations:.Miners must solve a complex mathematical problem called a "proof-of-work" for a new block. This means finding a hash value that satisfies certain conditions, which is very computationally intensive and requires high processing power.
• Add blocks and earn rewards:.The first miner to solve a proof-of-work block is entitled to add that block to the blockchain.
  When a block is added to the blockchain, the miner is rewarded with newly generated bitcoins (block reward) and a transaction fee.

Bitcoin mining requires a high level of computing power and therefore requires large data centers and dedicated mining hardware.
In addition, because they consume large amounts of electricity, energy efficiency and environmental impact are key concerns.

Who are CleanSpan's competitors?

CleanSpark's main competitors in the bitcoin mining industry are.

• Riot Platforms (RIOT):.Digital infrastructure company with bitcoin mining operations in Texas and New York.
• HIVE Digital Technologies (HIVE):.It has data centers in Canada, Sweden, and Iceland and mines digital currencies such as Bitcoin and Ethereum.
• Marathon Patent Group (MARA):.A digital asset technology company, primarily focused on bitcoin mining.
• Bitfarms (BITF):. A company specializing in bitcoin mining, Bitfarms operates high-efficiency mining facilities and large-scale bitcoin mining operations.

These companies compete with Clean Spark (CLSK) in bitcoin mining and each has its own strategies and resources.
The bitcoin mining industry is characterized by high energy consumption and technical requirements, and these companies are addressing these challenges in different ways.

What is the total amount of bitcoin that CleanSpark has?

Clean Spark (CLSK) has a total of 2,575 bitcoins as of November 30, 2023.

This information reflects that CleanSpark mined 666 bitcoins in November 2023 and sold 402 bitcoins in the same month. The company's bitcoin mining efficiency is 26.4 J/Th (joules per terahash), and its current hash rate is 10.08 EH/s (exahashes per second).

These data show that CleanSpark maintains high efficiency and productivity in bitcoin mining, and the company's bitcoin holdings are part of its business results.

Explanation of Mining Terminology

Efficiency - 26.4 J/Th (terahash per joule)

• Efficiency" refers to the amount of calculation processing that can be performed for the amount of power consumed by the mining equipment.
• J/Th" represents the amount of energy (in joules) required to perform one tera-hash calculation, meaning that a tera-hash can perform one trillion hash calculations per second.
• In this case, 26.4 J/Th means that it takes 26.4 joules of energy to perform one terahash calculation; the lower this number, the more energy efficient the mining equipment is.

Hash rate - 10.08 EH/s (exhash per second)

• The "hash rate" is the number of hash calculations that a mining device or network can perform in one second.
• EH/s" means that one exahash can be performed in one second (one exahash is one K hash calculation).
• In this case, 10.08 EH/s indicates that the mining equipment or network can perform about 10 kyocomputations per second, and the higher the hash rate, the more computations can be processed, which is considered advantageous in bitcoin mining.

In other words, the higher the efficiency (lower J/Th) and hash rate (higher EH/s), the better the mining equipment.
These expressions imply a high capacity to efficiently mine bitcoin.

Ref: Bitcoin Mining Update for November 2023

• Bitcoins mined in November: 666
• Bitcoins mined in 2023: 6,671
• Total BTC holdings as of November 30: 2,575
• Total BTC sold in November: 402
• Deployed fleet: 88,825
• Month-end fleet efficiency: 26.4 J/Th
• Current hash rate: 10.08 EH/s

Sold 402 BTC in November 2023 at an average price of approximately $36,600 per BTC.
The sale of BTC corresponds to revenues of approximately $14.7 million.

Daily BTC mined in November averaged 22.2 bits, reaching a high of 26.1 bits.

How does CSLK compare to competitors' mining volumes?

To gauge the level of Clean Spark's production, we compared its mining volume with that of its competitors.

Bitcoin Mining Volume Comparison

This table is based on November 2023 data.

From this table,CleanSpark, despite its small market capitalization, is the second largest among competitors in terms of mining productionIt can be seen that

CleanSpark also has higher Bitcoin holdings than its competitors.

These data show the size and efficiency of CleanSpark's bitcoin mining operations.

What are the advantages of low market capitalization in selecting stocks to invest in?

There are several advantages to choosing investment stocks with low market capitalization, but they depend on the investment strategy and market conditions.
Below are the main benefits.

• Growth Potential:. In general, companies with smaller market capitalizations are considered to have more room for growth. These companies are often associated with emerging markets and new technologies and have the potential for significant success.
• Share price upside potential:.Small-cap stocks have the potential for larger share price increases than large-cap stocks. As market recognition increases or performance improves, stock prices can rise significantly in a relatively short period of time.
• Lowest rating: -1Companies with low market capitalizations are often undervalued by the market. These companies have the opportunity to earn high returns by investing in them before they attract market attention.
• Potential acquisitions:.Small-cap companies are sometimes the target of acquisitions by larger firms. When an acquisition takes place, the stock price usually rises toward the purchase price.
• Sensitive to market movements: small-cap stocks are sensitive to market fluctuations and may react quickly in response to the economic environment or industry trends.

However, these benefits come with risks.
Small-cap stocks are often illiquid and have high stock price volatility, which increases investment risk.
In addition, small companies are often financially unstable and may be vulnerable to market volatility, so it is important to carefully consider risk tolerance and investment objectives before investing in small stocks.

In light of the above,BITF (Bitfarm) has a very small market capitalization, which means that the degree of share price growth can be expected due to Bitcoin price increases, but it is also riskier than other stocks.This needs to be taken into account.

What is CleanSpark's dividend?

Clean Spark (CLSK) has not paid a dividend.
Considering the business model and growth strategy, we believe that the company is focused on reinvesting profits to expand its business.

What are the sectors, industries, and themes to which Clean Spark belongs?

sector

• CleanSpark is primarily classified in the "Technology" sector. This sector includes companies that provide innovative technologies and services and is characterized by high growth potential.

type of industry

• CleanSpark's primary industries are "Software Services" and "Energy & Technology".
  In addition to developing and providing energy management software, the company focuses on the bitcoin mining business.

Themes belonging to

• Clean Energy: Clean EnergyBitcoin mining using low-carbon energy sources contributes to clean energy and sustainability.
• Blockchain & Cryptocurrency:.Through his bitcoin mining business, he is deeply involved in blockchain technology and the cryptocurrency market.
• Energy efficiencyThrough energy management software, the company aims to improve energy efficiency and reduce costs.

What is Bitcoin's position in virtual currency?

Bitcoin was the first virtual currency introduced in 2009 and has established itself as the reference currency in the virtual currency market.

Bitcoin uses blockchain, a distributed ledger technology, which allows transactions without the intervention of a central authority.

Its limited supply (up to 21 million coins) and decentralized nature make it valuable as digital gold and a means of protection against inflation and declining currency values.

How do you see bitcoin as an investment and how has it changed?

Bitcoin has been viewed variously as an investment vehicle from its early days to its current maturity.

Below is the transition of the change.

• Initial stage:.
  • In its early years, bitcoin was supported primarily by technology enthusiasts and libertarians.
  • It was highly speculative and its value and future potential were not widely recognized.
• Increased awareness and acceptance:.
  • Over time, bitcoin will become more widely recognized.
  • The rapid rise in prices attracts media attention and becomes known to the general investing public.
• Entry of institutional investors:.
  • In recent years, bitcoin has been recognized as an investment by institutional investors and large corporations.
  • Many companies hold bitcoin as part of their financial reporting and use it as a means of diversifying their investment portfolios.
• Developments in the regulatory and legal framework:.
  • Governments and financial institutions are beginning to develop regulatory and legal frameworks for virtual currencies, including Bitcoin.
  • This is establishing bitcoin as a more formal financial asset.
• Market maturity
  • The bitcoin market has matured, offering more stable trading platforms and financial instruments.
  • Financial instruments based on bitcoin, such as the approval of ETFs, have also been introduced.

Bitcoin remains a major player in the virtual currency market, and its role as an investment vehicle has evolved over time.

Due to its initial speculative nature, it is now considered one of the most important asset classes for many investors and companies.

However, bitcoin remains highly price volatile and investing in bitcoin is risky.
Therefore, investors should carefully consider market trends, regulatory changes, and their own risk tolerance when considering an investment in bitcoin.

What is the future price trend of Bitcoin?

Price trend in 2023

• Entering 2023, the price of bitcoin will skyrocket, at one point exceeding 4 million yen.
• Thereafter, there was a slight downward trend, but prices began to rise again in the second half of June 2023, hitting the 4.5 million yen level in July.
• On October 24, 2023, the price will surpass 5 million yen, the highest price since the beginning of the year.

Recent Price Trends

• The price remained stagnant at a high level until December 2023, but it began to soar again on December 4 and is now at 6.1 million yen.

Factors contributing to price increases

• The latest rise is due to expectations of approval of a physical bitcoin ETF.
• The surge in December 2023 is also believed to be supported by a risk-on trend in the market due to the expected end of the U.S. interest rate hike cycle.

What is the future of Bitcoin?

• Bitcoin is used worldwide as a means of payment and investment, and its penetration is high.
• Price may become unstable due to decrease in mining rewards caused by the coming half-lifeThere is a
• Approval of a physical bitcoin ETF is expected, which could have a significant impact on the market if it happensThere is a

The price of bitcoin has shown significant volatility since the beginning of 2023, and the recent rise in particular can be attributed to a risk-on trend in the market and expectations of ETF approval.
A number of factors are influencing the future of bitcoin, including its widespread use as a payment method, declining mining fees, and the possibility of ETF approval.

What is the half-life of bitcoin? How does it affect the price?

The half-life of bitcoin is an event in which the amount of new bitcoins issued (the amount of bitcoins rewarded by mining) is reduced by half.

This half-life is set by the Bitcoin protocol at approximately every four years and is intended to slow the pace of growth of the Bitcoin supply.

Influence of half-life

• Decrease in supply
  • When the half-life occurs, the amount of new bitcoins mined is cut in half. This reduces the amount of new bitcoin flowing into the market.
• Impact on Price: 1.
  • According to basic principles of economics, when supply decreases and demand equals or increases, prices tend to increase.
  • In past half-life events, bitcoin prices have tended to rise significantly around the half-life.
• Market Expectations and Speculation:.
  • Because the half-life is a scheduled event, many investors and market participants know this event in advance.
  • As a result, prices often rise toward the half-life, which is due to market expectations and speculative purchases.

Points to note for half-life events

• Market reaction is uncertain: half-life does not necessarily guarantee a short-term price increase. Other factors in the market and the external environment also influence prices.
• Long-term effects: Half-life effects are not only short-term, but may also contribute to stabilizing or increasing prices due to long-term supply declines.

Bitcoin's half-life is an important factor that increases its scarcity and contributes to higher prices in the long run.
However, investors should consider not only the half-life, but also overall market trends and other economic factors.

When is the next bitcoin half-life?

Bitcoin's next half-life is scheduled for 2024.
As for the specific timing,Likely to occur between February and June 2024... is considered ...

In this half-life, the reward given to bitcoin miners (miners) will decrease from the current 6.25 bitcoins to 3.125 bitcoins.

Expectation of half-life in 2024

• Price increase potential:. The price of bitcoin may increase as we approach the half-life of 2024. This is due to increased scarcity and market expectations due to a decrease in supply.
• Market Volatility:. Market volatility may increase toward the half-life. Price volatility during this period should be monitored carefully.
• Long-term impact:.Half-life could affect the long-term value of bitcoin. A decrease in supply could increase the scarcity of bitcoin and contribute to higher prices over time.

Bitcoin's next half-life is an important event in the market and could have a significant impact on Bitcoin's price trend.

Current share price of Clean Spark (CSLK)

Clean Spark (CLSK) stock chart on TradingView.

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

CleanSpark's Financial Results

First, we will review the following four indicators to perform a minimum performance analysis of Clean Spark (CLSK).

1. Sales: An indicator of a company's performance and growth.
2. Operating Cash Flow and Operating Cash Flow Margin: Indicators that look at how much cash a company generates from its services. The margin is considered excellent when the ratio is 15%.
3. Operating Profit: Profit earned by a company from its core business. An indicator to evaluate a company's performance.
4. EPS: An indicator that looks at a company's earning power "profitability" and "growth potential" in terms of net income per share. The higher the number, the higher the earning power.

Each data is,Investing.com, ,TradingViewSee from

CleanSpark Quarterly: Sales Trends

Quarterly sales forecasts and actual sales and year-on-year changes.

Sales forecasts and actual results are shown in graphs.

CleanSpark Quarterly: Operating Cash Flow Trends

Quarterly operating cash flow and operating cash flow margin.

Generally, an operating cash flow margin of 15% is considered excellent.

Each transition is shown in the graph below.

CleanSpark Quarterly: Operating Income Trends

Quarterly operating income.

Each transition is shown in the graph below.

CleanSpark Quarterly: EPS Trends

Quarterly EPS forecast and actual EPS.

Each transition is shown in the graph below.

Clean Spark Full Year: Sales Trends

This is the sales forecast for the full year and actual sales and year-on-year changes.

Each transition is shown in the graph below.

CleanSpark Full Year: Operating Cash Flow Trends

Operating cash flow for the full year and operating cash flow margin.
Generally, an operating cash flow margin of 15% is considered excellent.

Each transition is shown in the graph below.

Clean Spark Full Year: Operating Income Trends

Operating income for the full year.

Each transition is shown in the graph below.

Clean Spark Full Year: EPS Trends

This is the EPS forecast and actual EPS for the full year.

Each transition is shown in the graph below.

A discussion of Clean Spark (CLSK) based on sales trends and financial data

From the data, Clean Spark is,Despite the rapid growth in sales, operating income and EPS have been unstable.

This could be due to increased costs and one-time expenses associated with business expansion.

Sustained sales growth and improvements in operating income and cash flow require attention.

It is also necessary to assess the balance between future growth strategies and financial health.

What are the future developments and prospects for CleanSpark?

The following factors will play an important role in the future development and potential of Clean Spark (CLSK).

Expand bitcoin mining business

• CleanSpark is focusing on its bitcoin mining business and expanding its mining capacity. It will continue to install efficient mining equipment and expand its mining facilities to increase efficiency.
• It is important to minimize environmental impact and increase energy efficiency by using low-carbon energy sources for mining.

Technological Innovation and Market Trends

• The evolution of blockchain technology could impact CleanSpark's business model. Adoption of new technologies and innovative approaches will be key to competitiveness.
• The volatility of the Bitcoin price and regulatory trends in the virtual currency market have a direct impact on CleanSpark's performance. Market stability and growth are demand factors for long-term success.

Regulatory and Policy Influences

• Government regulations regarding virtual currency and blockchain will impact CleanSpark's business operations. In particular, regulations regarding energy consumption could have a direct impact on mining operations.

Financial Health and Growth Strategy

• Maintaining a sound financial condition is essential for corporate growth and expansion. Efficient capital allocation and risk management are key elements to sustainable growth.
• Strategic partnerships for expansion into new markets and technological innovation could also contribute to the future potential of CleanSpark.

What is the future of CleanSpark?Much depends on the expansion of the bitcoin mining business, clean energy initiatives, market and technology trends, the regulatory environment, and financial strategy.

These factors are expected to have a significant impact on the company's long-term success and growth.

However, there are risk factors such as volatility in the virtual currency market and regulatory uncertainty that need to be taken into account.

Clean Spark (CLSK) Financial Summary for FY2023

Key takeaways on CleanSpark's (CLSK.) FY2023 financial results.

Financial Highlights (FY2023)

• Increase in sales
  • Annual sales were $168.4 million, up 28% from $131.5 million in the previous year.
• Increase in net loss
  • Net loss was $136.6 million, up 138% from $57.3 million in the previous year.
• Decrease in Adjusted EBITDA
  • Adjusted EBITDA was $25.0 million, down 55% from $56.1 million in the previous year.
• Balance Sheet Highlights (as of September 30, 2023)
  • Cash: $29 million
  • Bitcoin: $56 million
  • Total current assets: $102 million
  • Total mining assets (including prepaid amounts and deployed miners, after accumulated depreciation): $485 million
  • Total assets: $762 million
• Debt and Shareholders' Equity
  • Current liabilities: $74 million
  • Gross debt: $84 million
  • Total shareholders' equity: $677 million
• Cash and Bitcoin holdings
  • As of September 30, 2023, the total cash and bitcoin holdings were $85 million and liabilities were $16 million.
  • As of November 30, 2023, the total cash and bitcoin holdings were approximately $168 million and liabilities were $14.8 million.

Points of Interest as an Investor

• Sales growthThe increase in sales indicates business expansion and market positioning.
• Increase in net loss: (1)Increased losses imply higher investment and operating costs, which could affect future profitability.
• Balance of assets and liabilities:.Increases in total assets and shareholders' equity indicate the financial health of the firm, but when combined with increases in net losses, may raise concerns about future financial strategies.
• Bitcoin Price Fluctuations:.The amount of bitcoin held and its value is heavily influenced by price fluctuations in the bitcoin market. This is an important factor that has a direct impact on the company's financial condition.

Clean Spark (CLSK) Financial Highlights for Q1 FY2024

• Revenue: $0.1 billionFirst-quarter revenue jumped $73.8M to $166% from $27.8M in the same period last year. Impacted by a significant increase in bitcoin prices and higher bitcoin mining revenues.
• Earnings per share (GAAP EPS)0.14, beating the average estimate (-$0.24) and improving from $0.57 in the previous quarter and $0.46 in the same period last year.
• Adjusted EBITDA69.1 million, a significant improvement from -$2.0 million in the same period last year.
• Working capital139.3 million and liabilities of $14.5 million. The balance sheet held $127 million worth of bitcoins and $48.5 million in cash.

Current hash rates exceed 12.5 EH/s, reinforcing its leadership in the industry.
The stock price rose sharply after-hours in response to these results.

Clean Spark (CLSK) Financial Highlights for Q2 2024

• Net sales111.8 million, up 1631 TP3T from $42.5 million in the same period last year.
• Net income126.7 million, compared to a loss of $18.5 million in the same period last year.
• Earnings per share (EPS)0.59 in base earnings.
• Adjusted EBITDA181.8 million, a significant increase from $12.7 million in the same period last year.

Business Growth and Development

• Hash rate: 1.0 The current hash rate exceeds 17 EH/s (exhash/s).
• Facility Expansion:.New facilities in Mississippi and Georgia to expand operational capacity by more than 601 TP3T.

Financial Stability

• Cash and Bitcoin At the end of the quarter, the company had almost $700 million in cash and bitcoin and was nearly debt free.
• Power cost: $3,000 The company's own sites achieve wholesale power costs of at least 1.3 cents per kilowatt-hour.

Strategic Focus

• Higher bitcoin prices and higher margins contributed to the increase in revenues.
• Focusing on innovation, measured growth, and strengthening its unique position in the market, the company aims to deliver sustainable value to its shareholders.

CleanSpark has achieved remarkable revenue growth in the area of bitcoin mining, and its technological expansion and strategic market development have made it the leading operator in the industry. Backed by a strong financial base, the company is well positioned to continue its growth in the future.

Which brokerage firms can I buy Clean Spark (CLSK) shares?

We have listed the major brokerages that offer Clean Spark shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) as well as directly as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

Considering the future potential of Clean Spark and Bitcoin, this is a highly promising issue.

Clean Spark is,Strengths in energy-efficient operations and focus on clean energy in the bitcoin mining business; this approach could ensure long-term competitiveness by making bitcoin mining more sustainable and cost-effectiveThere are

Meanwhile, bitcoin itself is expected to increase in scarcity and value as it approaches its half-life in 2024.
Past half-lives have shown that the price of bitcoin tends to rise significantly after the half-life, which could have a positive impact on CleanSpark's business, which is closely related to bitcoin price trends.

In addition, clean energy initiatives are adapting to the social trend of increased environmental awareness, which may create additional business opportunities in the future.

However, although it is necessary to evaluate the issue comprehensively, including its financial soundness, it is an attractive issue in the short term.