Why Now Might Be a Great Entry Point for CleanSpark

Hey everyone — I’ve been digging into the recent developments at CleanSpark, and I think there’s a compelling risk/reward asymmetry here. Below is a breakdown of where things stand, what’s going right, what to watch out for, and why this could be more than a speculative play.

What’s Going Well

Milestones in Hashrate & Operational Scale

• CleanSpark recently hit 50 exahashes/sec (EH/s) of operational hashrate as of June 2025 — and crucially, this was done entirely through fully self-operated infrastructure - with plans for 60EH.
  
• The fleet efficiency is improving: ~16.15 J/Th in June, ~16–17 J/Th average recently.
  
• Power contracts and infrastructure are also scaling: over 1 gigawatt of contracted power across multiple states.
  

Bitcoin Treasury Accumulation

• The treasury is growing: ~12,827+ BTC
  
• Their strategy seems disciplined: they are selling some BTC strategically (when favorable price) to fund operations, but not raising money via dilution or by issuing more equity
  

Strong Revenue Growth & Improving Financials

• YoY revenue growth is very strong (60‑100%+ depending on period).
  
• Net income has had some quarters of losses, but margins (adjusted including BTC treasury effects) are showing promise.
  
• Valuation has analyst support: some target prices are significantly higher than current trading price.
  

Positive Stock Price Momentum

• +11% weekly gain — strong price action, breaking out of recent consolidation.
  
• Bullish options flow — call volume surging, rising implied volatility.
  
• Closed above 200DMA — long-term trend reversal signal confirmed.
  

What to Watch / Risks

• Volatility & Exposure to BTC Price — The value of their BTC treasury moves with Bitcoin’s price, which means big swings. If BTC drops, that value drops.
  
• Energy Costs, Grid Issues, Regulatory Risk — Mining is energy‑intensive. Power under contract is great, but energy costs + reliability + regulation (e.g. carbon / environmental policies) remain risk factors.
  

Why the Upside Might Be Bigger Than the Downside ?

Here’s why I think the risk/reward looks attractive:

• With 50 EH/s already achieved self‑operated, efficiency improving, and BTC treasury increasing, there’s real asset backing. If BTC price rises, their treasury gives upside beyond just mining operations.
  
• The market seems to be acknowledging the potential: improved RS rating, analyst upgrades, and the 13% jump on news. That suggests that positive news can move the stock significantly.
  
• If they hit future targets (60 EH/s or more), keep power contracts tight, and maintain or improve cost of mining, CleanSpark may start delivering consistent profitability. That tends to attract institutional interest.
  
• Downside seems somewhat limited if current revenue growth continues and they avoid heavy dilution: even with modest BTC price or slight slowdown, the infrastructure, contracts, and treasury give a floor of value.
  
• Potential Expansion into AI and High-Performance Computing (HPC). - While CleanSpark has traditionally focused on Bitcoin mining, the company is exploring opportunities in AI and HPC. The global HPC market is projected to reach $49.3 billion by 2025, presenting a significant growth opportunity. CleanSpark's existing infrastructure and expertise in energy optimization position it well to leverage this market shift.
  

My View: Great Entry Opportunity

Given all that, I think CleanSpark is primed to outperform from here. If BTC moves higher or remains stable, CleanSpark should benefit on two fronts: mining revenue + appreciation in treasury holdings.

If I were investing now, I’d consider making a position here and holding for ~12 months, watching for:

• Next earnings report: does it show margin improvement / shrinking losses?
  
• BTC price trend: if it rises, CleanSpark benefits heavily.
  
• Any new power contracts / expansions, particularly in low‑cost / renewable/immersion‑cooled operations.
  
• Expansion into AI and High-Performance Computing (HPC) news.
  
• Any dilution risk (equity raises) or major cost pressures.