Why is CleanSpark, Inc. stock outperforming the market?

CleanSpark Inc. (NASDAQ: CLSK) has shown significant growth with a 125% year-over-year revenue increase, reaching $378.97 million for fiscal year 2024, though it fell short of the $397.32 million analyst estimate. The company reported a full-year adjusted loss of 69 cents per share, missing the expected loss of 62 cents per share. In the fourth quarter, revenue was $89.28 million, exceeding the $88.64 million estimate, but the quarterly loss was 27 cents per share, larger than the anticipated 21 cents per share. Despite these earnings misses, CleanSpark's Bitcoin mining operations grew, with the hashrate increasing to 33.5 EH/s and projected to reach 50 EH/s in 2025. Operationally, CleanSpark expanded its deployed capacity by 187% year-on-year to 27.6 EH/s, outperforming peers' average growth of 75%. Fleet efficiency improved by 23%, and the company ended the quarter with 8,049 Bitcoin and $122.2 million in cash. CleanSpark completed a $650 million convertible notes offering, with proceeds of approximately $633.6 million earmarked for growth initiatives and strategic objectives. Analysts have a positive outlook, with HC Wainwright & Co. maintaining a Buy rating and a $27.00 price target, and JP Morgan raising its rating to Overweight with a $17.00 price target. Despite a market capitalization above the industry average, CleanSpark faces challenges in profitability and asset utilization, as indicated by net margin, ROE, and ROA below industry averages.