Bitcoin miner inventory CleanSpark has upside to $12, analyst says

• H.C. Wainwright reiterates CleanSpark Inc its prime decide for 2023.
• Analyst Mike Colonnese defined why in a analysis notice at present.
• CleanSpark inventory is already up greater than 50% for the 12 months.

Shares of CleanSpark Inc (NASDAQ: CLSK) are up almost 15% this morning after an H.C. Wainwright analyst named the bitcoin miner his prime decide for 2023.

CleanSpark inventory may quadruple from right here

On Tuesday, Mike Colonnese reiterated his “purchase” score on the crypto firm and mentioned its shares may climb to $12 – a few 300% upside from right here.

The bullish name on Clear Spark inventory arrives solely hours after it revealed to have purchased 45,000 new Antminer S19 XPs from Bitmain for about $145 million.

CLSK secured machines for a really engaging $23/TH, the bottom we’ve seen for these rigs, and 12% beneath the going charge for top effectivity ASICs primarily based on Luxor’s Bitcoin ASIC Worth Index.

With this buy, the analyst added, CleanSpark will have the ability to enhance its hash charge to 16 EH/s consistent with the corporate’s year-end goal.

CleanSpark inventory is considerably undervalued

CleanSpark is predicted to report its Q2 monetary outcomes subsequent month. Consensus is for it to lose 37 cents a share this quarter versus 5 cents of EPS a 12 months in the past.

For the 12 months, CleanSpark inventory is up greater than 50% at writing. Nonetheless, Colonnese is satisfied that it’s considerably undervalued. His analysis notice reads:

It’s buying and selling at 46% low cost to friends on market cap to deployed hash charge, which we view as unwarranted. Immediately’s announcement ought to give buyers extra visibility and conviction into CLSK.

When it comes to fleet effectivity, CleanSpark is forward of everybody else within the business following at present’s cope with Bitmain, the analyst concluded.