• H.C. Wainwright names CleanSpark Inc its top selection for this year.
• Explanation of why was provided by analyst Mike Colonnese in a research note.
• CleanSpark stock has already gained more than 50% in 2021.

The price of CleanSpark Inc (NASDAQ: CLSK) is up nearly 15% this morning after an H.C. Wainwright expert picked the bitcoin miner as their top pick for this year.

CleanSpark stock could quadruple from here

Today, Mike Colonnese re-affirmed his “buy” rating on the crypto company and suggested its shares could reach $12 – about a 300% surge from the current price.

This optimistic forecast for CleanSpark stock came shortly after it announced the purchase of 45,000 new Antminer S19 XPs from Bitmain for around $145 million.

CLSK secured machines for a very attractive $23/TH, the lowest we’ve seen for these rigs, and 12% below the going rate for high efficiency ASICs based on Luxor’s Bitcoin ASIC Price Index.

With this deal, the analyst added, CleanSpark will be able to boost its hash rate to 16 EH/s in line with the company’s year-end target.

CleanSpark stock is significantly undervalued

CleanSpark is anticipated to report its Q2 financial numbers next month. Analysts are expecting it to lose 37 cents per share this quarter compared to 5 cents of EPS a year ago.

CleanSpark stock is up more than 50% at writing. Nonetheless, Colonnese believes it’s significantly undervalued. His research note reads:

It’s trading at 46% discount to peers on market cap to deployed hash rate, which we view as unwarranted. Today’s announcement should give investors more visibility and conviction into CLSK.

In terms of fleet efficiency, CleanSpark is ahead of everyone else in the business following today’s agreement with Bitmain, the analyst concluded.