Chardan cuts CleanSpark stock target to $20, maintains Buy rating

On Wednesday, Chardan Capital Markets updated its perspective on CleanSpark Inc. (NASDAQ:CLSK), a company specializing in bitcoin mining. The firm has transferred coverage to a new analyst, James McIlree, who set a price target of $20.00, down from the previous target of $26.00, while maintaining a Buy rating on the company’s shares. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $12 to $25, suggesting significant upside potential from current levels.

The adjustment in the price target comes as CleanSpark’s shares have dropped over 50% from their 52-week high of $20.64, currently trading at what is considered the lower end of its peer group based on enterprise value to sales (EV/Sales) and enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratios of 13.89x. Despite the decline, Chardan believes that CleanSpark possesses significant financial strength and flexibility, with a robust current ratio of 8.67 and relatively low debt-to-equity ratio of 0.34, which could enable the company to self-fund its mining operations and expansion through the sale of mined bitcoins, while also growing its bitcoin reserves. InvestingPro analysis indicates the stock shows high volatility with a beta of 4.37, making it suitable for investors with higher risk tolerance.

CleanSpark has been actively mining bitcoin and now commands approximately 5% of the global hash rate. The company holds over $1.3 billion in bitcoin, which accounts for about half of its $2.73 billion market capitalization. CleanSpark began a strategy to accumulate bitcoin in mid-2023, in anticipation of the halving of the bitcoin block reward. Since then, the company has increased its bitcoin holdings from fewer than 200 bitcoins at the end of March 2023 to almost 12,000 by the end of March 2025. During this period, the value of bitcoin has risen from $28,500 to $82,500, significantly increasing the value of CleanSpark’s bitcoin holdings from $5.3 million to $980 million. The company has demonstrated impressive revenue growth of 89.47% over the last twelve months, reaching $537.4 million.

Chardan’s continued Buy rating indicates a positive outlook on CleanSpark’s future performance, despite the recent reduction in the stock’s price target. The firm appears to be confident in CleanSpark’s strategy and its ability to capitalize on the cryptocurrency market’s dynamics. For deeper insights into CleanSpark’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, CleanSpark Inc. reported its second-quarter 2025 financial results, revealing a challenging period as the company missed both earnings and revenue forecasts. CleanSpark posted an earnings per share of -$0.49, significantly below the anticipated $0.04, while revenue reached $181.7 million, falling short of the projected $195.25 million. Despite a 62.5% year-over-year increase in revenue, the company recorded a net loss of $138.8 million, largely attributed to a Bitcoin price mark-to-market adjustment. Additionally, the company’s stock experienced a 3.8% decline in aftermarket trading following these announcements. CleanSpark continues to focus on expanding its exahash capacity and infrastructure, highlighting its commitment to growth in the competitive Bitcoin mining sector. The company also remains committed to increasing operational efficiency and has plans to expand its exahash capacity to 57, with potential infrastructure support for over 60 exahash. In related developments, cryptocurrency-related stocks, including CleanSpark, experienced declines following Moody’s Ratings downgrade of the United States’ credit rating, reflecting a broader trend of risk aversion in the market.

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