CLSK should be a $100 STOCK. episode artwork

EPISODE · Jul 28, 2021 · 13 MIN

CLSK should be a $100 STOCK.

from ElBlanco Finance · host ElBlanco

CleanSpark just keeps pulling in MOVES. CLSK has been under the radar recently, but I think that the people will eventually catch on. In the meantime, give me them cheap shares, I'll accumulate ;)   🚀 Join the VIP Membership Group (Discord) today! ► https://fiveorlessfinance.com/ 0:00 No more 5 Minutes or Less? 2:03 CLSK Q1 Analysis 3:58 CLSK Scenarios 9:19 Profitability, Financials, Microgrid  11:28 Conclusion 🔥   I am not a financial advisor. DO YOUR OWN RESEARCH. It’s worth it.  CLSK just announced a new microgrid project in southern California today. They just got added to the Russell 2000. Because of the whole China situations, hash rates have gone down to their lowest point since 2019, which means that it's something like 30% (if I remember correctly) cheaper for CleanSpark to mine Bitcoin. Next quarter results should be interesting...  At a $13.44 stock price, CleanSpark is currently trading at a $470M mkt cap.  In Q1 2021, three-month revenue did +122% to $8.1M. During Q1, they produced 144 bitcoin, and currently hold 115 bitcoin. Right now, they produce 4 bitcoin per day. Multiply 30k per bitcoin * 365 days * 4 = $43.80M in revenue. Annualize these numbers and you get a 10.7 P/S, which is incredibly cheap considering their more than 100%+ growth. Assuming a sustained 100% growth, it means that next year, their P/S will be around 5. I mean... Apple's P/S is 7.5...  - Considering that in a few months, they will likely be mining 5 BTC per day 👉 You can pump that potential annual crypto revenue to $54.75M.  - Assume BTC goes up to 60k per bitcoin + they are mining 5 BTC per day 👉 You can pump up that annual revenue projection to over $100M. If they make $100M in annual revenue, that gives CLSK a P/S of 4.7. They also operate a high margin recurring revenue micro-grid software business.   Now, onto profitability. In Q1 2021, CleanSpark achieved profitability for the first time. They brought in $7.4M of net income. Adj EBITDA was $1.7M. This was their first profitable quarter and their Adj EBITDA margin was 21%...    CleanSpark also has a robust balance sheet. Total liabilities is sitting at $8.9M versus their cash position which is at $157M. So bankruptcy & debt risk = 0% (in my opinion).

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CLSK should be a $100 STOCK.

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