H.C. Wainwright reiterates CleanSpark Inc its top pick for 2023.
Analyst Mike Colonnese explained why in a research note today.
CleanSpark stock is already up more than 50% for the year.

Shares of CleanSpark Inc (NASDAQ: CLSK) are up nearly 15% this morning after an H.C. Wainwright analyst named the bitcoin miner his top pick for 2023.

CleanSpark stock could quadruple from here

On Tuesday, Mike Colonnese reiterated his “buy” rating on the crypto company and said its shares could climb to $12 – about a 300% upside from here.

The bullish call on Clean Spark stock arrives only hours after it revealed to have bought 45,000 new Antminer S19 XPs from Bitmain for about $145 million.

CLSK secured machines for a very attractive $23/TH, the lowest we’ve seen for these rigs, and 12% below the going rate for high efficiency ASICs based on Luxor’s Bitcoin ASIC Price Index.

With this purchase, the analyst added, CleanSpark will be able to improve its hash rate to 16 EH/s in line with the company’s year-end target.

CleanSpark stock is significantly undervalued

CleanSpark is expected to report its Q2 financial results next month. Consensus is for it to lose 37 cents a share this quarter versus 5 cents of EPS a year ago.

For the year, CleanSpark stock is up more than 50% at writing. Still, Colonnese is convinced that it’s significantly undervalued. His research note reads:

It’s trading at 46% discount to peers on market cap to deployed hash rate, which we view as unwarranted. Today’s announcement should give investors more visibility and conviction into CLSK.

In terms of fleet efficiency, CleanSpark is ahead of everyone else in the industry following today’s deal with Bitmain, the analyst concluded.

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