What happened
Shares of energy-technology and bitcoin-mining company CleanSpark (CLSK +3.04%) soared today after a Wall Street analyst initiated coverage of the stock with a bullish note. The stock was up 14% for the session.
So what
Penny stocks and small-cap stocks like CleanSpark are often off most investors' radars because analyst firms aren't giving them any coverage. However, CleanSpark stock is up around 1,700% over the past year, meaning it's starting to get some attention. According to The Fly, an analyst with BTIG is starting off their coverage of CleanSpark stock with a buy rating. The price target is set at $45 per share, which is still substantial upside.
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This is the second time in recent weeks that CleanSpark stock has felt the love from Wall Street. In February, it got a buy rating from an analyst with H.C. Wainwright. According to The Fly, this analyst set the price target for CleanSpark stock higher than BTIG at $50 per share.
Now what
Wall Street seems bullish on CleanSpark's Bitcoin mining opportunity. In recent weeks, the company announced the acquisition of new machines, as it attempts to reach a hash rate of 1.3 exahashes per second (EH/s) by this summer. With its announcements so far, it's at 633 petahashes per second (PH/s), which is almost halfway to its goal. While it's pricey to constantly buy more equipment, it's necessary if companies like CleanSpark want to stay competitive, as the total hash rate of the Bitcoin blockchain network keeps rising.
