Bitcoin mining company CleanSpark Inc (NASDAQ:CLSK) seems "serious" about building an HPC (high-performance computing) pipeline, according to Needham.
The CleanSpark Analyst: Analyst John Todaro reiterated a Buy rating, while raising the price target from $21 to $23.
The CleanSpark Thesis: The company is likely to make near-term data center hires to begin the process of establishing its HPC pipeline, Todaro said in the note.
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Management is taking a conservative approach to HPC and is likely to target 50MW (critical load) in initial phases, which the company can easily fund given its robust balance sheet with around $1.5 billion worth of bitcoin, the analyst stated.
"While there are HPC suitable sites in CLSK’s current 1.2GW contracted power portfolio, in particular at Norcross, GA (22.5MW) and College Park, GA (47MW), outside Atlanta, mgmt. seems most focused on a greenfield project for HPC," he wrote.
CLSK Price Action: Shares of CleanSpark declined by 4.03% to close at $19.28 on Friday.
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