Investment Idea: CleanSpark, Inc.

CleanSpark, Inc. provides bitcoin mining and energy technology solutions worldwide. It operates in two segments, Digital Currency Mining and Energy. The Digital Currency Mining segment engages in mining of bitcoin. The energy segment provides engineering, design and software, custom hardware, open automated demand response, solar, and energy storage solutions for microgrids and distributed energy systems to military, commercial, and residential customers; and develops platforms that enables designing, building, operating, and managing of energy assets. This segment also offers microgrid energy modeling, energy market communications, and energy management solutions comprising mPulse and mVoult, which are control platforms that enables integration and optimization of multiple energy sources; Canvas, a middleware for grid operators and aggregators to administrate load shifting programs; Plaid, a middleware for controls and Internet-of-Things products companies to participate in load shifting programs; and mVSO, an energy modeling software for internal microgrid design, as well as owns gasification energy technologies for various applications, such as feedstock for the generation of di-methyl ether. In addition, it provides design, software development, and other technology-based consulting services; data center services, including rack space, power, and equipment; and various cloud services, such as virtual, virtual storage, and data backup services. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is headquartered in Henderson, Nevada.

Investment Idea: CleanSpark, Inc. (CLSK)

CleanSpark, Inc. (CLSK) - Investment Idea

1. Executive Summary

CleanSpark (CLSK) presents a compelling investment opportunity based on its dual exposure to the rapidly growing Bitcoin mining sector and its innovative energy technology solutions for microgrids and distributed energy systems. We believe CleanSpark is well-positioned to capitalize on the increasing demand for Bitcoin and the ongoing transition to sustainable energy solutions, driving significant revenue growth and profitability.

2. Investment Thesis (Bull Case)

Bitcoin Mining Exposure and Efficiency: CleanSpark's dedicated Bitcoin mining segment provides direct exposure to the potential upside of Bitcoin's price appreciation. The company's focus on efficiency and strategic acquisition of mining facilities positions it to generate strong cash flow from its mining operations, even in fluctuating Bitcoin market conditions. Their recent expansion and technology upgrades make them a relatively low-cost producer.
Energy Segment Synergies and Growth Potential: CleanSpark's energy segment offers diversification and significant growth opportunities. The company's microgrid and distributed energy systems solutions, including platforms like mPulse and mVoult, address the growing demand for reliable, sustainable, and cost-effective energy management for military, commercial, and residential customers. Specifically, their "Canvas" software provides valuable load shifting programs. This market is driven by increasing adoption of renewable energy sources and the need for grid resilience.
Strategic Focus on Microgrids & Energy Management: The increasing instability of the power grid and the push for decentralized energy are powerful tailwinds. CleanSpark is well-positioned with their portfolio of hardware and software solutions that assist in the management of energy use.
Leveraging Expertise for Growth: The company's integrated approach, combining energy technology expertise with Bitcoin mining operations, creates potential synergies and competitive advantages. CleanSpark can utilize its energy management solutions to optimize power consumption for its mining operations, reducing costs and increasing profitability.

Investment Idea: CleanSpark, Inc.

Investment Idea: CleanSpark, Inc. (CLSK)

CleanSpark, Inc. (CLSK) - Investment Idea

CLSK Valuation Model