- CLSK was trading at $18 on Tuesday
CleanSpark stock price has remained in a tight range this week as investors focus on the recent halving event, Bitcoin trends, and upcoming earnings. CLSK was trading at $18 on Tuesday, almost 30% below the highest point this year. It has jumped by over 900% from its lowest point in 2023, giving it a market cap of over $3 billion.
CleanSpark earnings ahead
CleanSpark has grown to become the second-biggest mining company in the world after Marathon Digital. It has passed other well-known brands like Riot Platforms, Cipher Mining, Hut 8 Mining, and Bitfarms.
This performance happened as the company’s growth accelerated. Data shows that its total revenue jumped from $4.5 million in 2019 to over $168 million in the last financial year. Analysts expect that its annual revenue will rise to $426 million and $791 million in 2024 and 2025, respectively. This performance, however, will depend on the performance of Bitcoin.
CleanSpark will be in the spotlight as the company publishes its financial results on Thursday this week. Analysts expect that the company’s revenue will come in at $102.57 million in Q1 and the guidance for Q2 will be $114.5 million.
CleanSpark, like other Bitcoin mining companies, benefited from the performance of BTC. Bitcoin soared to a record high of $73,400 in the first quarter. That means that its Bitcoin sales rose in Q1 while those in its balance sheet did well.
The most recent data shows that CleanSpark mining activity is doing well. It produced 721 coins in April, bringing the total mined coins to 2,752. The decline from 806 in March likely happened because of the halving event that reduced the number of coin rewards.
CleanSpark mined 648 coins in February and 577 coins in January. The company now holds 5,739 coins, an increase from 3,573 in January. At the current price, these coins have a market value of over $361 million.
Analysts believe that CleanSpark is one of the best mining companies in the industry. It has a deployed fleet of over 136k machines and the number will continue rising once the Dalton location come online. That will help it gain market share as some weak miners go out of business. In a recent statement, the company’s CEO said:
“The remarkable increase in transaction fees immediately following the halving has significantly bolstered our bitcoin production this month, resulting in a robust increase to our bitcoin treasury. We have spent the last several years planning for this moment, and our technological advantages have positioned us to excel under the new market constraints faced by all miners.”
CleanSpark stock price forecast
The daily chart shows that the CLSK stock price bottomed at $1.67 in 2023 and has now surged to over $20. It has soared above the crucial support at $13.60, its highest swing in December last year.
CleanSpark shares have remained above the 50-day and 100-day Exponential Moving Averages (EMA). The Relative Strength Index (RSI) has formed a symmetrical triangle pattern.
Therefore, I suspect that the stock will continue rising in the near term as investors target the key resistance at $24.75, its highest point in March. In the long term, the stock will likely continue soaring as it emerges as a key winner in the mining industry.
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