CleanSpark has exhibited strong revenue growth, with a 125% year-over-year increase to $379 million in FY24. The company has also substantially increased its hashrate, reaching 33.5 EH/s by the end of FY24 and aiming for 50 EH/s in 2025. This expansion is driven by both organic growth and strategic acquisitions, positioning CleanSpark as a significant player in the Bitcoin mining industry. The company has been able to grow its Bitcoin stack from 228 BTC at the end of 2022 to 9,952 BTC at the end of 2024.

CleanSpark is aggressively expanding its mining capacity, aiming for 50 EH/s in 2025 through organic growth and acquisitions. The company's cost basis of $36,250 per Bitcoin requires sustained high Bitcoin prices for profitability. CleanSpark has also used a convertible note offering for share repurchases and capped calls, a potentially more sustainable approach than buying Bitcoin with borrowed money.

Despite a 68% increase since October 2024, CLSK's stock has underperformed compared to the rise in Bitcoin prices. This underperformance suggests that while there has been some positive sentiment, the overall trend lacks solid momentum. The stock's volatility is very high, and it is below key moving averages, indicating weakness.

CleanSpark faces several risks, including Bitcoin price volatility, rising mining difficulty, and shareholder dilution. The company has a history of significant shareholder dilution with a 564% increase in shares outstanding over a three-year period. The company's net income margin is also -38.47%, meaning it is not currently profitable.

CleanSpark is focused on improving energy efficiency and has reduced consumption. They also are diversifying geographically, with mining operations in multiple US states, mitigating risks associated with relying on a single region.

CleanSpark faces competition from other Bitcoin miners, some of which are pivoting to high-performance computing (HPC). CleanSpark differentiates itself by maintaining a pure focus on Bitcoin mining. However, this may be a disadvantage as other miners diversify their revenue streams.

Bitcoin's price is correlated with global liquidity and has been on an uptrend since early 2023. However, Bitcoin's price also reacts negatively to news about U.S. debt ceilings. There are concerns that if Powell hints at fewer or slower rate cuts ahead, then it could be more difficult for risk assets, like BTC, to continue their bull run.

The market for Bitcoin mining is growing, but it faces ongoing competition and regulatory risks. CleanSpark is aiming to grow its hashrate, but faces a threat of increasing hashrate from competitors, which may reduce mining margins.

CleanSpark is based in the U.S. and does not have any apparent geopolitical or state ownership risks. Trump has expressed his support for digital assets.