12 Stocks Under $10 With High Upside Potential

Page 11 of 11

1. CleanSpark, Inc. (NASDAQ:CLSK)

Share Price: $7.76

No. of Hedge Fund Holders: 27

Analyst Upside Potential: 196.39%

CleanSpark, Inc. (NASDAQ:CLSK) is an American Bitcoin mining company. It plays a key role in the Bitcoin blockchain network by validating transactions and securing the network through mining activities. CleanSpark holds one of the largest self-mined Bitcoin treasuries in the industry, with over 10,000 Bitcoins mined in the U.S.

CleanSpark, Inc. (NASDAQ:CLSK) continues to grow following a strong performance in 2024. In Q1 FY2025, the company posted a revenue of $162.3 million, a significant growth of 120% year-over-year. The net income was around $246.8 million, showing strong financial performance. CleanSpark has secured a $650 million convertible bond, fully funding its growth strategy to reach 50 exahash by mid-2025 without relying on equity. The company has reduced its marginal cost per Bitcoin to almost $34,000, improving its fleet efficiency and profitability.

On February 12, Needham analyst John Todaro initiated a Buy rating on CLSK shares, setting a price target of $20 per share. Todaro is optimistic about the industry’s future and CleanSpark’s strong operational efficiency, attractive valuation, and solid balance sheet.

While we acknowledge the potential of CLSK to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CLSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 11 of 11