CleanSpark, Inc. (NASDAQ:CLSK) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CleanSpark, Inc. operates as a bitcoin miner in the Americas. The company’s loss has recently broadened since it announced a US$132m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$156m, moving it further away from breakeven. The most pressing concern for investors is CleanSpark's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for CleanSpark

CleanSpark is bordering on breakeven, according to the 5 American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$208m in 2025. Therefore, the company is expected to breakeven just over a year from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 105%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of CleanSpark's upcoming projects, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.8% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of CleanSpark which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at CleanSpark, take a look at CleanSpark's company page on Simply Wall St. We've also put together a list of key aspects you should look at:

1. Valuation: What is CleanSpark worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether CleanSpark is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CleanSpark’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.