KBW maintained its “Outperform” rating and $16 price target on CleanSpark (NASDAQ: CLSK) Tuesday after reviewing the bitcoin miner’s Sandersville data-center lease.
The July 14 note left the target unchanged after reviewing the agreement
KBW analyst Stephen Glagola said Sandersville’s economics were broadly consistent with the firm’s expectations and largely reflected in CleanSpark’s $12.36 share price. The 20-year lease covers 175 MW of net capacity and is expected to generate $6.6 billion in contracted revenue from an investment-grade global technology tenant. CleanSpark structured the agreement as a triple-net lease that includes annual rent escalators and an estimated net operating income margin close to 100%.
KBW put the 15-year trended yield on cost at about 15.8%, near its prior 15.5% estimate, using management’s projected construction cost of $10 million to $12 million per net MW. KBW’s valuation already includes Sandersville KBW’s $16 target applies a roughly 6.7% capitalization rate to assumed Sandersville and Sealy leases totaling 343 MW net, using a 15.5% trended yield on cost. The framework separately values CleanSpark’s remaining business, including bitcoin mining at six times estimated 2026 EBITDA, then accounts for adjusted net debt and the company’s bitcoin holdings.