CleanSpark Inc (CLSK.O) shares edged higher in pre-market trading Wednesday, building on a sharp rally from the prior session, after a bullish analyst call from Bernstein drew fresh attention to the growing intersection of bitcoin mining and artificial intelligence infrastructure. The stock was quoted at $14.94, up 1.7% from Tuesday's close of $14.69, as bitcoin traded near $77,400.
The investment thesis centers on a shift in how investors value bitcoin miners. Rather than focusing solely on cryptocurrency production, the market is increasingly assessing the worth of miners' power contracts, which can be sold, leased, or repurposed for higher-margin AI data center operations. Bernstein assigned CleanSpark an Outperform rating with a price target of $24, according to a report by Benzinga. Analysts led by Gautam Chhugani see bitcoin miners collectively holding over 27 gigawatts of planned power capacity, with AI-linked deals already covering approximately 3.7 gigawatts and representing more than $90 billion in value across hyperscalers, neoclouds, and chip providers.
The Power Premium
Bernstein's analysis, encapsulated by the phrase 'Follow the Gigawatts,' underscores that the scarce resource is not just chips or buildings, but electricity that can be quickly connected to the grid. This perspective is gaining traction as the U.S. faces significant delays in grid interconnection, with data centers taking 18 to 24 months to build but grid connections requiring three to seven years in some regions, as reported by Reuters.
CleanSpark has been positioning itself to capitalize on this trend. In its April operational update, the company reported producing 640 bitcoin, holding 13,453 bitcoin at month-end, and maintaining an operational hashrate of 50.0 EH/s. The company has 1.8 gigawatts of power under contract, of which 808 megawatts are currently utilized. Chief Executive Matt Schultz has framed the strategy succinctly: 'Bitcoin mining funds the platform, AI monetizes it.'
Financial Realities and Market Context
Despite the upbeat narrative, CleanSpark's financial results reflect the volatility of the crypto market. For its fiscal second quarter, the company reported revenue of $136.4 million, a decline of 24.9% year-over-year, and a net loss of $378.3 million, or $1.52 per share. Adjusted EBITDA, a non-GAAP measure, came in at negative $241.2 million. The quarter included a $224.1 million non-cash bitcoin fair-value loss, an accounting adjustment tied to market prices rather than an immediate cash expense, as noted by CoinDesk.
Chief Financial Officer Gary Vecchiarelli told analysts that bitcoin mining remains the company's 'functional currency' until it secures a stabilized lease for AI infrastructure. This transitional phase is central to the business plan: mine coins now, sign longer-duration AI leases later.
Industry Peers and Risks
CleanSpark is not alone in this pivot. Bernstein also highlighted IREN, Riot Platforms, and Core Scientific, noting IREN's planned 5-gigawatt AI compute buildout and Riot's co-location deal with AMD. The peer group is increasingly valued based on power access rather than bitcoin production alone.
However, the trade carries risks. A delayed hyperscale lease, a decline in bitcoin prices, local permitting hurdles, grid constraints, or higher financing costs could push shares back toward traditional mining valuations. Bernstein also flagged regulatory and environmental scrutiny for large data-center projects, and CleanSpark's own risk factors include power availability, regulatory approvals, and digital-asset volatility.
Management remains confident in demand. Schultz told Northland Capital Markets analyst Michael Grondahl that a neocloud company had requested to see all CleanSpark sites with 60 megawatts or more available, adding that demand is 'going nowhere but up.' Chief Business Officer Harry Sudock noted a 14-to-18-month delivery window after a first lease signing, with the company requiring a signed lease before committing major capital.
The next catalysts include CleanSpark's appearances at the B. Riley Annual Investor Conference on May 21, the Macquarie AI Infrastructure Conference on June 10, and the Northland Growth Conference on June 23. Investors will be watching for signs that power capacity is transitioning from an asset on paper to a signed customer contract.
