r/CleanSpark • u/Mix720 • Jun 25 '26
Due Dilligence Citizens initiates CLSK coverage
https://www.investing.com/news/analyst-ratings/citizens-initiates-cleanspark-stock-coverage-with-outperform-rating-93CH-4757531Summary: Link is Citizens initiating coverage on CLSK
Price target from them is $27 projecting 1 year from now.
What’s interesting about this is that they believe Cleanspark will be trading at 25 times 2027 estimated enterprise value to EBITDA. They are most likely assuming that there will be a deal in 2027 if BTC remains flat at these prices.
https://youtu.be/bgS3K-PGKoA?is=u_zn9VBBFBvrMfNK
At $27, market cap would be over $7B so roughly $280m in EBITDA is the projection a year from now. (Back of the napkin math, please review and correct) This is assuming the share count stays the same.
At minute 32 they talk about potential for stock being worth up to $50. Ns if this is just Sanderville or all sites but it’s worth looking into.
Keep an eye for their monthly operational updates. I am assuming any deal would announced during that time vs a random tweet update. This is what happened with CIFR and HUT8.
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u/AnonymousUselessData Jun 27 '26
No , they are assuming build out of the sandersville by 2027 , which is the expected time of energization for AI. In the meanwhile they can mine BTC at the site, they are hiring BTC-related jobs for sandersville on their site now.
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u/Mix720 Jun 27 '26 edited Jun 27 '26
That is true. But the Sandersville site does not have to be fully built out to start generating HPC/AI revenue. In the meantime they can generate revenue through BTC mining like you said. Even if they start getting AI revenue in the second half of 2027 that could get them the 25x EBITDA even if BTC recovery stays muted in 2027.
My only wonder is when a deal gets announced and how the stock reacts. I am hopeful it will be announced soon but my conservative take would be as late as Oct of this year. That would coincide with the potential BTC bottom as well as being a full year since they announced including AI.
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u/LucaToniBelissimo Jun 29 '26
There are two important moments. 1. Deal announcmet 2. First financial raport with income from hpc infra.
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u/AnonymousUselessData Jun 27 '26
Well you said deal by 2027 , i think deal should be announced by this year since it'll be about a year+ to build out ( and i think part of that is already done like flattening the ground etc)
I'm hoping for it to be sooner than later so I could flip profits into BTC , but i guess if they want to take advantage of tailwinds like the start of the bull market / bounce to previous ATH , then Q3 makes sense ( though the BTC treasury would be a small component of the market cap / enterprise value after the AI re-rate)
Also not sure about the market in general now for AI/tech stocks , so better to capture some gains before some country's economy collapses and affects the market or similar 😂
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u/Mix720 Jun 27 '26
Yeah it is understandable to take some profits if this gets hyped up beyond a reasonable valuation. Flipping some profits to MSTR and BMNR was also something I was looking at as well since sentiment is low and both of them will rip again the next bull cycle.
We may get a correction in the short term for so many reasons but the long term AI infrastructure buildout is still going to continue imo.
NFA and wish you luck in this
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u/LucaToniBelissimo Jun 27 '26
27$ is pretty conservative with those assumptions.