CleanSpark (NASDAQ: CLSK) stock price has crawled back in the past few days as investors bet that it will do well after last week’s halving event. It jumped to a high of $21.50 on Thursday, its highest point since April 1st. Like other Bitcoin mining companies, CLSK has soared by almost 500% from its lowest point in September.
Is it a good Bitcoin mining stock?
CleanSpark is one of the biggest Bitcoin mining companies globally with a deployed fleet of almost 134k machines.
Before halving, the company used to produce about 806 Bitcoins every month. It also has over 5,000 coins worth over $326 million in its balance sheet.
Like other companies in the sector, CleanSpark is going through two major challenges. First, the price of Bitcoin has stalled in the past few weeks. After peaking at a record high of $73,500 earlier this year, Bitcoin has moved sideways. Most recently, it has struggled to pierce the crucial resistance at $67,000.
Second, the company is facing the challenge of the rising mining difficulty after the Bitcoin halving event. Data shows that Bitcoin’s mining difficulty has jumped to a record high and the trend may continue. Halving reduced the number of Bitcoin rewards given to miners.
Despite these challenges, analysts believe that CleanSpark will continue thriving in the coming years. For one, it has a modern fleet of miners and one of the lowest energy costs in the industry. As a result, its cost-to-mine post-halving is set to be $28,000, lower than the industry average of over $47k.
Earlier this month, the company said that it had exercised an option for 100k Bitmain S21 Pro machines. This is an important move since more machines will help it increase the number of coins it produces each month. When making the announcement, Zach Bradford, the CEO said:
“Our extraordinary scale has allowed us to make meaningful gains in our bitcoin production without having to increase the energy use of our data centers. This is good not only for CleanSpark and our shareholders, but for the entire bitcoin network.”
These upgrades are part of the company’s strategy to grow its exahash from the current 12.5 EH/s to 50 EH/in 2025.
Looking ahead, the next important catalyst for the CleanSpark stock price will come out on May 9th when the company publishes its financial results. These results will provide more color about what to expect in the coming months.
Analysts expect the results to show that the company’s revenue rose to $102.7 million in the last quarter. They also expect it to provide a guidance for $114 million this quarter and $426 million for the year.
CleanSpark stock price forecast
The outlook for the CLSK share price will depend on the performance of Bitcoin for the remainder of the year. If Bitcoin recovers, it will signal that the company and other miners will continue thriving.
Turning to the daily chart, we see that the CleanSpark share price has recovered recently after bottoming at $13.82 earlier this month. It has jumped to over $20 and remained above the 50-day moving average for five days straight.
CleanSpark’s Relative Strength Index (RSI) has moved above the neutral point of 50 while the Bull Bear Power indicator has moved above the neutral point. Therefore, the outlook for the stock is neutral with a bullish bias. More upside will likely see the stock rise to the crucial resistance at $24.75, its highest point this year.
