1. CleanSpark, Inc. (NASDAQ:CLSK)
Analyst Upside Potential: 155.56%
Number of Hedge Funds: 20
CleanSpark (NASDAQ:CLSK) is a Bitcoin mining company that independently owns and operates around nine data centers in Georgia, two in Myoming, three in Mississippi, and co-locations in New York and Tennessee. It does not host miners for any other companies, with its operating mining units capable of producing computing power of more than 22.6 exahashes per second (EH/s). It owns and runs several data centers primarily running on low-carbon power. The company designs its infrastructure to ensure and support the Bitcoin network responsibly. It also operates several subsidiaries, including CleanSpark DW LLC, ATL Data Centers LLC, CleanBlok Inc., CleanSpark GLP, LLC, SCRE Properties Norcross, and others.
The company announced its agreement to acquire up to an additional 22.8 exahash per second of the new S21 XP series of immersion-cooled miners, operating at an efficiency of 13.5 joules per terhash. This purchase is expected to drive the company ahead by improving its overall fleet efficiency. The company exceeded $100 million in revenue for the second consecutive quarter in Q2 2024, producing $290 million in revenue since the beginning of its fiscal year in October 2023. It also grew its hash rate by 4 exahash per second, and delivered on its commitment to achieve 20 exahash per second by the end of the quarter. The company is on track to meet and optimally exceed its target of 32 exahash per second.
CleanSpark (NASDAQ:CLSK) underwent several positive changes in the quarter, maintaining its growth trajectory through the Bitcoin halving event and setting new benchmarks in market leadership and operational efficiency. The company’s primary strategy has been infrastructure-first, owning and operating its sites being at the center of its operations. Its distributor portfolio makes up another central part of its operations, meaning that the company is not dependent on any utility or site’s output, giving it flexibility and resilience.
It has expanded its strategy significantly over the past nine months, growing from operating 5 sites in Georgia to managing more than a dozen unique sites across four states. It plans to open new sites as well. This infrastructure growth has allowed the company to improve its overall scale and the value of its portfolio, positioning it for continued success in the future.
Overall, CLSK ranks first among the 8 most promising stocks to buy among Wall Street analysts. While we acknowledge the potential of promising stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CLSK but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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