CleanSpark, Inc. (CLSK) stock climbed Wednesday despite reporting quarterly results that fell short of Wall Street's expectations. The reason? Investors are betting on something more interesting than mining bitcoin: leasing power-hungry infrastructure to AI companies willing to pay premium rates.

The company's strategic shift from bitcoin miner to AI infrastructure provider could unlock transformative colocation deals that reshape its entire revenue model well before its mining operations lose their luster.

On Tuesday, CleanSpark reported fourth-quarter revenue of $223.65 million, missing analyst estimates of $236.97 million, along with a loss of 1 cent per share versus expectations for positive earnings of 38 cents per share. Not exactly a victory lap on the traditional metrics.

Power Portfolio Becomes the Real Asset

Chardan analyst James McIlree noted that revenue actually exceeded his $215 million estimate and highlighted the company's rapid transformation toward AI infrastructure. The compelling part is CleanSpark's control of 1.3 GW of contracted power, including 285 MW near Houston and 230 MW at Sandersville, Georgia, both positioned for AI lease agreements by early 2027.

These sites will transition capacity from bitcoin mining to AI operations, boosting both revenue and margins significantly. McIlree projects that Sandersville alone could generate $233 million in annualized revenue, while recent contracts covering 230 MW may deliver over $300 million in revenue at margins exceeding 80%.

The catch? CleanSpark faces near-term costs from payroll, professional fees, and general administrative expenses to support its AI site buildout, with capital requirements around $10 million per MW.

For the next 12 to 18 months, McIlree expects results will still be driven by bitcoin mining. A bitcoin price recovery could lift hashprice, though ongoing mining investment across the industry continues applying downward pressure.

Multibillion-Dollar Deal Could Come Early

H.C. Wainwright analyst Mike Colonnese reiterated a Buy rating and sees CleanSpark potentially securing a multibillion-dollar HPC/AI colocation deal sooner than the market expects.

Management revealed plans to repurpose the 250 MW Sandersville facility, which offers 200 MW of critical IT capacity with immediate availability and attractive Georgia market characteristics. Colonnese estimates a single colocation deal at this site could generate around $400 million in annual recurring revenue.

Beyond the immediate HPC/AI upside, CleanSpark holds over 13,000 Bitcoin (BTC) and maintains a strong HPC/AI position supported by its power portfolio, Submer partnership, solid balance sheet, and proven large-scale infrastructure expertise.

Two Customers Ready to Sign

Needham analyst John Todaro raised his price forecast to $25 from $23 while maintaining a Buy rating. The analyst highlighted that CleanSpark is making significant progress in HPC, with management noting that two customers want to sign agreements by year-end.

While Todaro remains conservative on lease timing, he raised his probability estimates for HPC leases at several sites, including Sandersville. He modestly increased 2026 hash assumptions and introduced 2027 estimates factoring in 172 MW of HPC contribution. His view: CleanSpark remains attractively valued given the near-term HPC opportunities.

Tier-1 Market Positioning Matters

JPMorgan analyst Reginald L. Smith noted that CleanSpark focused its quarterly discussion on HPC conversion, reporting strong interest from potential tenants for long-term colocation at both its Sandersville site and newly acquired Austin County site.

Smith emphasized that his firm continues to favor CleanSpark's positioning in Tier-1 data center markets and looks forward to updates on deals and construction progress at both locations.

Skeptics Remain Active

The company carries a short float of 57.70 million shares, representing 22.20% of its publicly traded float. That's a notably elevated level of bearish positioning from investors betting against the stock, suggesting not everyone is convinced the AI infrastructure pivot will play out as bulls expect.

CLSK Price Action: CleanSpark shares were up 7.36% at $12.69 at the time of publication on Wednesday.