B.Riley initiates CleanSpark stock with Buy rating on mining capacity growth

Investing.com - B.Riley has initiated coverage on CleanSpark Inc. (NASDAQ:CLSK) with a Buy rating and a price target of $16.00, citing the company’s expanding Bitcoin mining operations. This target aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $14 to $25, with the company maintaining a FAIR financial health score.

CleanSpark operates more than 30 sites across Georgia, Mississippi, Tennessee, and Wyoming, with 987 MW of contracted power that is fully owned and operated by the company, according to B.Riley.

The Bitcoin miner exceeded its mid-year operating hash rate goal of 50 EH/s on June 24, ahead of schedule, becoming the first publicly traded Bitcoin miner to achieve this scale with fully self-operated infrastructure.

The company has already secured funding for miners and infrastructure to increase capacity to 57 EH/s, positioning it to meet growth targets over the next 12 months.

B.Riley noted that CleanSpark’s business model enables the company to leverage underutilized power networks while maintaining vertically integrated control over energy procurement, development, and operations, emphasizing long-term sustainability and industry-leading cost per Bitcoin. The company maintains a healthy current ratio of 8.67, indicating strong short-term liquidity to support its operations.

In other recent news, CleanSpark Inc. reported a challenging second quarter in 2025, missing both earnings and revenue forecasts. The company posted an earnings per share (EPS) of -$0.49, significantly below the anticipated $0.04, with revenue at $181.7 million, falling short of the projected $195.25 million. Despite this, revenue increased by 62.5% year-over-year. In the Bitcoin mining sector, CleanSpark announced an increase in its operational hashrate to 45.6 EH/s, a 7.5% sequential rise, and aims to reach 50 EH/s by mid-2025. The company also doubled its Bitcoin treasury year-over-year, now holding over 12,500 BTC. Chardan Capital Markets updated its perspective on CleanSpark, reducing the price target to $20.00 from $26.00 but maintaining a Buy rating. The firm noted CleanSpark’s significant financial strength and flexibility, which could support self-funding of its operations and expansion. Additionally, cryptocurrency-related stocks, including CleanSpark, experienced declines following Moody’s downgrade of the U.S. credit rating.

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