CleanSpark Inc. (NASDAQ:CLSK) shares are trading higher Wednesday on continued momentum after the company announced a 20-year lease agreement with a global technology company.
- CleanSpark shares are powering higher. Why are CLSK shares rallying?
CleanSpark Signs 20-Year Data Center Deal
CleanSpark shares surged on Tuesday after the company announced it entered into a 20-year infrastructure lease agreement with a high-investment grade global technology company at its Sandersville, Georgia, data center campus.
The agreement, which also includes two five-year extension options, is expected to generate approximately $6.6 billion of contracted revenue over the initial term. CleanSpark said the deal could total up to $11.6 billion after the full extension options.
“This lease is a transformational moment for CleanSpark as we complete our evolution into a diversified digital infrastructure platform and begin monetizing our power portfolio at institutional scale,” said Matt Schultz, chairman and CEO of CleanSpark.
“A 20-year commitment from a high-investment-grade global technology company with a market-leading commercial profile and exclusivity across our nearly 900 MW of additional capacity in Texas is a tremendous validation of our land-and-power strategy.”
Analysts Revise Estimates Higher
Following the 20-year lease announcement, BTIG reiterated a Buy rating on CleanSpark and maintained a price target of $26. Needham analyst John Todaro also chimed in on Wednesday, maintaining a Buy and raising the price target from $18 to $23.
The Needham analyst pointed out that the undisclosed tenant also executed a letter of intent and exclusivity arrangement covering CleanSpark’s entire Texas portfolio of 718 acres with up to 885 MW of secured and planned power capacity. Todaro said such creates near-term lease catalysts over the next 30 to 120 days.
“We introduce FY28 estimates, with revenues of $1,127M and Adj. EBITDA of $693M, reflecting a full ramp of the 175 MW of critical IT load at Sandersville and contribution from Sealy and Brazoria. We raise our PT to $23, 18.5x our discounted 2028 EBITDA estimate,” the analyst wrote in the note.
CLSK Shares Continue To Rise
CLSK Price Action: CleanSpark shares were up 1.19% at $13.61 at the time of publication on Wednesday. The stock hit session highs of $14.86 shortly after the open before pulling back, according to Benzinga Pro.
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