• CleanSpark, Inc. recently announced it has expanded its Bitcoin-backed credit facility with Coinbase Prime by US$100 million, increasing the facility’s aggregate lending capacity to US$300 million in order to fund growth projects across its energy, bitcoin mining, and high-performance computing operations.

• This latest move allows CleanSpark to access significant non-dilutive capital while leveraging its bitcoin holdings as collateral instead of raising equity or selling digital assets, aligning with its long-term focus on diversification and operational expansion.

• We’ll examine how this additional US$100 million in bitcoin-backed financing could influence CleanSpark’s investment narrative and growth prospects.

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To own shares of CleanSpark, you need to believe in the long-term strength and institutional adoption of Bitcoin, as well as the company’s ability to expand efficiently and diversify its operations. The recent US$100 million expansion of its bitcoin-backed credit facility with Coinbase Prime secures additional non-dilutive funding to support growth, but it does not fundamentally change the biggest short-term catalyst: higher Bitcoin prices and rising institutional demand. However, the principal risk for CleanSpark remains its high sensitivity to Bitcoin price volatility and future mining economics, which can compress margins if adverse.

Among the recent announcements, CleanSpark’s August production result of 657 Bitcoin, underpinned by an increased average hash rate, stands out as most relevant to the company’s ability to capitalize on fresh funding and grow output. Operating at higher efficiency and scale is increasingly important given the capital-intensive nature of mining and the need to maximize returns on new investments, especially with ongoing competitive and technological pressures within the sector.

In contrast, investors should be aware of how quickly increased hardware or energy costs could impact CleanSpark’s break-even thresholds if Bitcoin price momentum fades …

Read the full narrative on CleanSpark (it’s free!)

CleanSpark’s narrative projects $1.5 billion in revenue and $319.0 million in earnings by 2028. This requires 32.5% annual revenue growth and a $26.5 million increase in earnings from $292.5 million currently.

Uncover how CleanSpark’s forecasts yield a $20.16 fair value, a 45% upside to its current price.

The Simply Wall St Community’s 18 fair value estimates for CleanSpark span from US$8.26 to US$29.26, with a wide range of views on potential upside or downside. While many see room for revenue growth as a key catalyst, these diverse perspectives highlight the importance of considering multiple scenarios when evaluating CleanSpark’s prospects.