11/26/2023 0 Comments Clean spark stock forecast![]() The company’s CEO has an accounting background, and the company website doesn’t even include a CTO in their management team: The first red flag that I see is that the company seems to pay close to no attention to the technical side of things. I did a deep dive into all of them and have summarized my conclusions below. While doing my research on the company, various things felt off. Within one year, the company will be able to produce 27 bitcoins every day, implying highly profitable quarterly sales of roughly $120M. Currently, the company is able to mine around 8-9 bitcoins every day, which are worth around $450,000, translating to quarterly revenue of around $40M. As long as the bitcoin price doesn’t drop too much and the mining difficulty doesn’t increase, this segment will be a huge cash cow for the company. And at the same time, it is able to show off its technology and therefore possibly sell it to other miners (or also other industries).īitcoin mining is currently very lucrative with a bitcoin price of around $50,000 and the company’s self-proclaimed all-in mining costs of only $6,000 per bitcoin. ![]() The company’s rationale behind entering this industry is that energy is the biggest cost factor for bitcoin mining and therefore it believes that it can mine more efficiently than other miners due to its superior energy management. Since then, the company has ramped up its bitcoin mining operations and is still waiting for the arrival and installation of $126M worth of bitcoin mining equipment to increase the production capacity even more over the next twelve months. In December 2020, CLSK acquired US-based bitcoin miner ATL. For now, this is all you need to know about this segment - later I will explain, why I believe that the new energy segment is close to worthless. In the recent quarter, this segment accounted for 24% of the total revenues. However, until now, the company had big trouble growing this segment and only generated a few million dollars of revenue every quarter while being nowhere close to being profitable. ![]() The industry is expected to grow with a CAGR of 12%-28% until 2029 ( source 1, source 2 ). Microgrids got more attention recently due to large-scale power outages in Texas and California. A major user of microgrids is the military, but there are also commercial and residential users, who CleanSpark is now trying to target more and more. This microgrid can be connected to the central electricity network but can also work independently. a battery), and units that can use energy (e.g. a solar panel), units that can store energy (e.g. A microgrid is a decentralized group of units that can produce electricity (e.g. ![]() In this segment, the company offers various software solutions (most importantly "mPulse" and "mVSO") for different microgrid applications and it sells related components such as intelligent switches and parallel switchgears. Until the beginning of this year, CleanSpark’s operations only consisted of its new energy business. If you are already familiar with the company, feel free to skip this passage. In order to value the company, we need to understand both segments. Business OverviewĬleanSpark can be separated into two segments, the new energy segment and the bitcoin mining segment. However, CleanSpark ( NASDAQ: CLSK) is a special case and I will do the opposite as I really want to bring more attention to the company’s many red flags.īelow, I will provide a balanced analysis by showing all the risk factors that I have identified and why the bitcoin mining operations seem to be the only hope for the company. Usually, in my articles, I will first extensively talk about the investment thesis and then give readers a short overview of the involved risks. ![]()
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