CLSK

CleanSpark just printed a transformational FY2025: revenue doubled to $766M (+102%) and the company swung from a -$146M loss to +$364M of net income, with operating margin expanding to 41.6% as the post-halving Bitcoin rally lifted realized prices against a largely fixed-cost mining base. Hashrate of 45.6 EH/s (peak 50) on 241,934 in-service miners at 16.7 W/TH average efficiency is genuinely competitive, and at 5.4x P/S with a $4.15B market cap the stock is not pricing in heroic assumptions. Equity of $2.18B against $1.01B of liabilities gives a clean 0.46x leverage ratio on the surface, and the $145M buyback (shares -12.6% YoY) signals management confidence.

The trouble is hiding underneath the GAAP win. Operating cash flow was -$461M (vs. +$348M of D&A added back, implying enormous working-capital/bitcoin-inventory absorption as management explicitly shifted in April 2025 to 'building long-term holdings' rather than monetizing production). Cash fell 64.6% to just $43M while long-term debt exploded ~89x to $645M — the company is funding both its bitcoin treasury and a capital-intensive pivot with leverage, not internal cash flow. Retained earnings remain -$126M despite the banner year, confirming this is one good print on top of years of losses, not a durable franchise.