Summary CleanSpark reported $198.6 million in Q3 2025 revenue, up 91% YoY, with net income of $257 million ($0.90/share). The company operates 50 EH/s, representing 5.8% of global Bitcoin network power, supported by 1 GW of contracted energy capacity. Average power cost fell to $0.056/kWh, and cost per Bitcoin mined was $44,806, less than half industry average. CleanSpark holds 12,703 Bitcoin (~$1.5 billion value) and $34.6 million cash, financing expansion without new equity issuance since 2024. FY2026 revenue is projected at $1.13 billion, implying 45% growth and a forward P/S of just 4.9x, far below AI-infrastructure peers. Investment Thesis CleanSpark ( CLSK ) is secretly matured out of the one time Bitcoin ( BTC-USD ) miner it used to be to become one of America’s most successful digital infrastructure players. Having 1 GW+ of contracted power capacity , 33 US data centers, and 5.8% of the global hash power, it makes spectacular gains all the while debt-free and dilution-free. Its 55% gross margin, $1.5 billion Bitcoin balance, and cash-on-cash returns over 50% allow it to be among the dozes of miners funding growth out of the cash register. Only 4.9x forward sales trading multiple despite 45% expected revenue growth to $1.13 billion in 2026 makes CleanSpark an unusual asymmetric bet, profitable today, infrastructure-rich tomorrow, and well positioned in the coming explosion in AI compute. A Record Quarter That Redefined Scale CleanSpark’s fiscal Q3 2025 was the most profitable in its history. The firm generated $198.6 million in revenue , which rose 91% year-over-year, and netted $257 million ($0.90 per share). The company's EBITDA rose to $377.7 million, which is quite the reversal following the $12.6 million loss the prior year. The company's gross margin grew to 55% due to decreased power costs and increased fleet efficiency. Unlike most miners, CleanSpark reached such grades without diluting equity. The company issued no share since November 2024 and funded all the operating and expansion cost with internally cogenerated cash flow. That own-accountness is violently rare in an industry notorious for chronic dilution and growth with debt. At Q3, CleanSpark controlled 50 exahash per second (EH/s) running hash power, which represented 5.8% of all-world Bitcoin network power and controlled over 1 GW of contracted power capacity, some 80% operational. The remainder of the 200 megawatts (MW) will power the remainder +10 EH/s capacity completing roll out this quarter which may give CleanSpark’s marketplace presence near 7% global hash power. CleanSpark’s Q3 Earnings The average unit's cost declined to $0.056 per kilowatt-hour (kWh), compared to $0.060 in the previous quarter, and the business unit's mining fleet at 16 joules per terahash (J/TH), among the strongest indicators of business unit productivity. The all-in cost to create one Bitcoin totaled $44,806, well below half the industry average cost. These controls emphasize what makes CleanSpark, an industrial scale, vertically-integrated model that can be in full control of all the steps of the power and mines business, all the way from the acquisition of lands and construction of infrastructures to the acquisition of power and the management of the funds. CleanSpark’s Q3 Earnings The Financial Engine: A Miner That Prints Cash Instead of Shares At a point when most miners dilute shareholders to fund staying alive, CleanSpark’s cash-generating machine operates solo. It had $34.6 million in cash and 12,703 Bitcoin valued at approximately $1.5 billion sitting on its balance sheet at the close of Q3. Total debt totaled $820 million, primarily in the form of a 0% convertible note due 2030 with $24.66 strike price. Working capital totaled $933 million, leaving the company with all the flexibility it needs to expand without new equity raises. One of the least pronounced elements in the CleanSpark reengineering is its Digital Asset Management unit launched in 2025. Rather than putting out Bitcoin for loan (a tactic that used to result in devastating industry wide losses), CleanSpark now uses the conservative covered-call derivative approach with respect to up to 40% of the Bitcoin stake with the aim of generating a 4% annualized yield . These short-term, low-delta trades contribute incremental cash flow without forfeiting the principle security. The treasury of the company basically acts like an income-generating base asset. This institutional-grade discipline sets CleanSpark apart from speculative miners and emphasizes its growth into a financial operator at the mature stage. Lastly, operational leverage is what amplifies CleanSpark’s growth. Once fixed power and labor costs are paid out of the top line, all incremental EH/s of capacity adds disproportionately to the bottom line. CleanSpark almost doubled its hash rate in just over three months, going from 27.6 EH/s to 50 EH/s, with strong cost controls in place. In short, the company’s margins expand as it scales. Optionality: The AI Compute Angle CleanSpark is, by design, a Bitcoin-centric company. But the management has freely admitted that some of its sites, particularly those in proximity to major urban centers like Atlanta or Cheyenne, could yield better returns if it repurposed them for AI or high-performance computing (HPC) applications, a fast growing market. The infrastructure of the company already has the necessary prerequisites with close proximity to substations, power-hungry cooling densities, and desposable power configurations. Having 1 GW of contracted capacity with another 1.7 GW in its long-term pipeline , CleanSpark enjoys the flexibility to deploy megawatts to compute-intensive workloads as the market economics dictate. In the short term, Bitcoin is the higher-return capital deployment with the ~55% cash-on-cash return compared with 20–30% for the HPC data centers with higher upfront CapEx and longer payout durations. The balance may shift with stabilizing GPU prices and normalization of the infrastructure requires scenario in the area of Artificial Intelligence. CleanSpark's strength is having all the infrastructure in-house prior to that pivot. Whilst others develop miners and start-ups hustle to finance AI conversions, CleanSpark’s capacity can be re-purposed within almost no time once the economics makes sense. Its optionality exists in reality but it doesn’t involve the dilution or the riskiness that comes with the wrong diversification at the wrong time. www.precedenceresearch.com Why CleanSpark May Be the Smartest Bet in Bitcoin Infrastructure At $20/share, CleanSpark's valuation levels significantly below its earnings power and asset base. CleanSpark's forward P/E is only 9.5x , compared to a median sector valuation of 24.6x, a 61% discount. Its forward EV/EBITDA of 10.3x is 32% below peers, in what is one of the industry's handful of consistently GAAP profitable miners with solid free cash flow. Consensus estimates forecast $1.13 billion in 2026 revenue , up 45% from $778 million in 2025, yet the stock trades at a forward P/S of just 4.9x, a massive disconnect compared with peers that have pivoted to AI hosting. If re-rated even to a ~7-10x forward P/S multiple, in line with lower-tier infrastructure comparables, CleanSpark’s implied valuation would approach ~$29–$40 per share, representing ~45-100% upside from current levels. Data by YCharts How Bitcoin Volatility and Market Hype Test CleanSpark’s Resilience CleanSpark’s greatest unknown is Bitcoin price volatility. A long decline below $60,000 may tighten mining margins, slow expansions, and decrease cash flows. Nevertheless, the company’s low $44,800 coin-mining cost offers wide insurance. Tariff risk is also at stake. While import rules for mining hardware remain unclear, management expects new US manufacturing lines from Bitmain and Canaan to gradually offset tariff and supply-chain risks over time. Lastly, execution risk revolves around the 10 EH/s expansion plan, which relies on the timely power energization of 200 MW covered under existing contracts. Based on the history of the company, almost double capacity in nine months, execution risk seems controllable. Data by YCharts Takeaway CleanSpark is emerging as America’s first true digital compute utility, vertically integrated, energy-secure, and quietly positioned to dominate the next phase of AI infrastructure. At its current prices the stock trades at a deep discount to its underlying economics.
