MOELIS & COMPANY stock forum
CLSK CLSK is undervalued🚨Here is why... 👇🏼
CleanSpark has the following assets on their balance sheet :
1. Roughly 7,500 BTC (Including August figures)
2. 163,287 S21 (mining hardware)
3. 4.8 million Sq foot of land (real estate)
Now lets do some napkin math on these listings above:
1. 7,500 X $60,000 bitcoin = 450M
2. 163,287 X $6,318 per device = 1.03B
3. 4,800,000 X $80 per Sq foot Avg = 384M
Total assets = 1.866Billion
CLSK trades at a enterprise value of 2.12BThis means that the assets mentioned above represent the following values of the companies enterprise value:
1. 21.23%
2. 48.68%
3. 18.11%
Total = 88.02% of
CLSK total enterprise value. This means that
CLSK currently trades at a very small premium of 254M Now lets calculate their Economic Profit:
Last quarter they mined 104M in Bitcoin. This come at the following costs 👇🏼
45M in energy costs⚡️
17M in labour salary's 🙋🏼♂️
4M in fee's 📑This means that they made and Economic profit of $38. This can be calculated as follows:
104M BTC mined in Q2 -
66M Cost of mining = 38M Now lets calculate their Premium to Earnings 👇🏼
254M (Stocks premium) / 152M (38M X 4 quarters) = 1.67 🤯... this is super cheap.
Now lets calculate the companies Enterprise Value to Earnings Value 👇🏼
2.12B / 0.152B = 13.94
Even at todays prices
CLSK is undervalued and should find support any day now. Now imagine a world where Bitcoin trades +100K, this company's earnings will explode due to their low cost of mining bitcoin.
Many reading this maybe wondering why I have included the S21's as an asset and not a depreciating asset. This is because it is impossible to get your hands on the device with it being sold out everywhere! The higher the price of Bitcoin trades, the higher the cost of a secondhand device sells for. This is why
CLSK is so heavily correlated to the price of Bitcoin.This is just some napkin math which explains how this company is undervalued and any move in Bitcoin can send it higher by a 2/3X multiple of Bitcoins volatility.
Euphoria will return to this stock and Q4 is when I expect it to kickstart.
