CleanSpark Reports Bitcoin Production Decline Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2025
0mins
Should l Buy CLSK?
CleanSpark Inc. experienced a significant decline in its stock price, hitting a 20-day low, as the Nasdaq-100 fell by 1.06% and the S&P 500 decreased by 0.17%.
The company's January bitcoin production dropped to 573 tokens from 622 in December, raising concerns about its mining operations and future revenue expectations. This decline in production efficiency may impact investor confidence, especially as CleanSpark prepares for its upcoming earnings call on February 5, 2026, where it will discuss its fiscal Q1 results and market strategies.
The implications of this production decline could lead to increased scrutiny from investors, particularly regarding CleanSpark's ability to maintain profitability in a challenging market environment. The company's strategic reserve of 13,513 bitcoins may provide some cushion, but the recent performance metrics highlight the need for effective operational adjustments.
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Analyst Views on CLSK
Wall Street analysts forecast CLSK stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 9.310
Low
14.00
Averages
23.50
High
27.00
Current: 9.310
Low
14.00
Averages
23.50
High
27.00
About CLSK
CleanSpark, Inc. is a bitcoin mining company. The Company independently owns and operates data centers across the United States with locations in Georgia, Mississippi, Tennessee and Wyoming for a total contracted power capacity of approximately 853 megawatts (MW). The Company designs its infrastructure to responsibly secure and support the bitcoin network. Its operating mining units are capable of producing over 40 exahashes per second (EH/s) of computing power. The Company operates approximately 188,500 bitcoin mining machines, with a hashrate capacity of approximately 27.6 EH/s and a fleetwide efficiency of 21.94 joules per terahash (J/TH). The Company's subsidiaries include ATL Data Centers LLC, CleanBlok, Inc., CleanSpark DW, LLC, CleanSpark GLP, LLC, CSRE Properties Washington, LLC, CSRE Properties Dalton, LLC, CSRE Property Management Company, LLC, and CSRE Properties Norcross, LLC, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Attraction of Shorted Stocks: LCID stock has become a target for heavy shorting as many experienced traders and institutional investors believe the company's fundamentals are overvalued, reflecting a pessimistic outlook on its future performance.
- Short Selling Mechanics: Short sellers bet on significant risks facing the company, such as poor earnings or industry headwinds, which may lead to a decline in stock price, thus garnering attention for short-selling strategies in the market.
- Short Squeeze Dynamics: When a stock's price unexpectedly rises, short sellers are forced to buy back shares to cover their positions, creating a surge in demand that further drives up the price, resulting in a feedback loop that can lead to explosive gains in a short time frame.
- Most Shorted Stocks List: As of February 13, the most heavily shorted stocks include companies with market caps above $2 billion and free floats exceeding 5 million shares, with short interest serving as a barometer of market sentiment.
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CleanSpark Stock Surge Driven by Bitcoin Price Increase
- Bitcoin Price Impact: As a pure-play bitcoin miner, CleanSpark's revenue and profitability are closely tied to bitcoin prices, and with the recent spike in bitcoin, the value of each mined coin increases while many operating costs remain fixed, thereby expanding mining margins.
- Earnings Report Miss: CleanSpark's fiscal first-quarter revenue of approximately $181 million fell short of Wall Street's expectations of $196 million, with a wider-than-expected loss of $1.35 per share; however, management highlighted a strong balance sheet with over $450 million in cash and roughly $1 billion in bitcoin.
- Technical Analysis: Currently, CleanSpark's stock is trading 13.2% below its 20-day simple moving average and 27.9% below its 100-day simple moving average, indicating a challenging short-term outlook despite today's gains.
- Weak Market Momentum: Although CleanSpark shares rose 8.81% to $10.14, they have decreased by 5.62% over the past 12 months and are closer to their 52-week lows, suggesting ongoing pressure in the longer-term trend, with a low momentum score of 17.64 indicating a weak trend overall.
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- Tech Stock Recovery: Despite a severe selloff in software and AI-related stocks leading to one of the sharpest pullbacks in years, the market's rebound before the weekend indicates sustained investor interest in tech stocks, potentially boosting earnings for related companies.
- Improved Market Breadth: Financials, industrials, and select consumer names joined the rally, indicating improved market sentiment, while Bitcoin's rebound also lifted crypto-linked stocks, showcasing investors' preference for diversified investments.
- Analysts Warn of Volatility: Despite a strong market finish, analysts caution that volatility remains high, urging investors to closely monitor upcoming earnings reports and Federal Reserve policy signals to assess the sustainability of massive AI spending.
See More
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- Bitcoin Rebound: Bitcoin's price rebounded by 7% to the $68,000 level after a sharp decline, directly driving Hut 8 Mining's stock rise, indicating a restoration of market confidence in cryptocurrencies.
- Stock Performance: Hut 8 Mining's shares surged 8.86% to $48.42 on Friday, reflecting investor optimism regarding the crypto market recovery and demonstrating the company's strong performance among its peers.
- Market Dynamics: Despite a severe downturn earlier this week that led to double-digit losses for many crypto-related stocks, Hut 8 successfully capitalized on the positive sentiment surrounding Friday's market rebound, showcasing its resilience in a volatile environment.
- Industry Comparison: Hut 8 Mining's stock has increased by 131.99% over the past year, significantly outperforming the average peer performance of just 6.65%, highlighting its dominant position and the substantial gap established with competitors.
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Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives on their future performance, which could influence investor decisions and market sentiment.
- AMZN Stock Outlook: Analysts' opinions on Amazon (AMZN) stock indicate mixed views on its future growth potential, prompting investors to pay close attention to the latest ratings and recommendations when considering purchases.
- Impact of Rating Changes: Upgrades and downgrades from analysts can lead to stock price volatility, necessitating that investors closely monitor these changes to timely adjust their investment strategies and optimize their portfolios.
- Market Sentiment Reflection: Changes in analyst ratings not only affect individual stock performance but can also impact overall market sentiment, urging investors to consider these factors comprehensively for informed investment decisions.
See More
CleanSpark Q1 2026 Earnings Call Insights
- Revenue and Margin Changes: CleanSpark reported over $180 million in revenue for Q1, despite a $43 million decline quarter-over-quarter primarily due to Bitcoin price volatility and rising network difficulty, with gross margins decreasing from 57% to 47%, reflecting market challenges.
- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
- Capital Operations and Share Buybacks: CleanSpark completed a $1.15 billion convertible offering and repurchased $460 million in shares, bringing total buybacks to over $600 million since December 2024, reducing outstanding shares by approximately 20%, thereby enhancing shareholder value.
- Future Outlook and Market Demand: Management expects to shift from portfolio formation to commercialization milestones, emphasizing that the AI data center business will provide stable cash flows and high margins, and remains confident in signing contracts despite Bitcoin market volatility.
See More
Market Dynamics of Heavily Shorted Stocks
- Attraction of Shorted Stocks: LCID stock has become a target for heavy shorting as many experienced traders and institutional investors believe the company's fundamentals are overvalued, reflecting a pessimistic outlook on its future performance.
- Short Selling Mechanics: Short sellers bet on significant risks facing the company, such as poor earnings or industry headwinds, which may lead to a decline in stock price, thus garnering attention for short-selling strategies in the market.
- Short Squeeze Dynamics: When a stock's price unexpectedly rises, short sellers are forced to buy back shares to cover their positions, creating a surge in demand that further drives up the price, resulting in a feedback loop that can lead to explosive gains in a short time frame.
- Most Shorted Stocks List: As of February 13, the most heavily shorted stocks include companies with market caps above $2 billion and free floats exceeding 5 million shares, with short interest serving as a barometer of market sentiment.
See More
CleanSpark Stock Surge Driven by Bitcoin Price Increase
- Bitcoin Price Impact: As a pure-play bitcoin miner, CleanSpark's revenue and profitability are closely tied to bitcoin prices, and with the recent spike in bitcoin, the value of each mined coin increases while many operating costs remain fixed, thereby expanding mining margins.
- Earnings Report Miss: CleanSpark's fiscal first-quarter revenue of approximately $181 million fell short of Wall Street's expectations of $196 million, with a wider-than-expected loss of $1.35 per share; however, management highlighted a strong balance sheet with over $450 million in cash and roughly $1 billion in bitcoin.
- Technical Analysis: Currently, CleanSpark's stock is trading 13.2% below its 20-day simple moving average and 27.9% below its 100-day simple moving average, indicating a challenging short-term outlook despite today's gains.
- Weak Market Momentum: Although CleanSpark shares rose 8.81% to $10.14, they have decreased by 5.62% over the past 12 months and are closer to their 52-week lows, suggesting ongoing pressure in the longer-term trend, with a low momentum score of 17.64 indicating a weak trend overall.
See More
U.S. Stocks Hit Historic Highs as Tech Stocks Rebound
- Dow Jones Milestone: The Dow Jones Industrial Average surpassed the 50,000 mark for the first time, reflecting renewed investor confidence in technology and semiconductor stocks, which may drive future investment enthusiasm.
- Tech Stock Recovery: Despite a severe selloff in software and AI-related stocks leading to one of the sharpest pullbacks in years, the market's rebound before the weekend indicates sustained investor interest in tech stocks, potentially boosting earnings for related companies.
- Improved Market Breadth: Financials, industrials, and select consumer names joined the rally, indicating improved market sentiment, while Bitcoin's rebound also lifted crypto-linked stocks, showcasing investors' preference for diversified investments.
- Analysts Warn of Volatility: Despite a strong market finish, analysts caution that volatility remains high, urging investors to closely monitor upcoming earnings reports and Federal Reserve policy signals to assess the sustainability of massive AI spending.
See More
Hut 8 Mining Stock Rises on Bitcoin Rebound
- Bitcoin Rebound: Bitcoin's price rebounded by 7% to the $68,000 level after a sharp decline, directly driving Hut 8 Mining's stock rise, indicating a restoration of market confidence in cryptocurrencies.
- Stock Performance: Hut 8 Mining's shares surged 8.86% to $48.42 on Friday, reflecting investor optimism regarding the crypto market recovery and demonstrating the company's strong performance among its peers.
- Market Dynamics: Despite a severe downturn earlier this week that led to double-digit losses for many crypto-related stocks, Hut 8 successfully capitalized on the positive sentiment surrounding Friday's market rebound, showcasing its resilience in a volatile environment.
- Industry Comparison: Hut 8 Mining's stock has increased by 131.99% over the past year, significantly outperforming the average peer performance of just 6.65%, highlighting its dominant position and the substantial gap established with competitors.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, reflecting varying market perspectives on their future performance, which could influence investor decisions and market sentiment.
- AMZN Stock Outlook: Analysts' opinions on Amazon (AMZN) stock indicate mixed views on its future growth potential, prompting investors to pay close attention to the latest ratings and recommendations when considering purchases.
- Impact of Rating Changes: Upgrades and downgrades from analysts can lead to stock price volatility, necessitating that investors closely monitor these changes to timely adjust their investment strategies and optimize their portfolios.
- Market Sentiment Reflection: Changes in analyst ratings not only affect individual stock performance but can also impact overall market sentiment, urging investors to consider these factors comprehensively for informed investment decisions.
See More
CleanSpark Q1 2026 Earnings Call Insights
- Revenue and Margin Changes: CleanSpark reported over $180 million in revenue for Q1, despite a $43 million decline quarter-over-quarter primarily due to Bitcoin price volatility and rising network difficulty, with gross margins decreasing from 57% to 47%, reflecting market challenges.
- AI Infrastructure Expansion: The company acquired 271 acres in Texas along with 285 megawatts of contracted power, planning to establish a Houston-area AI data center hub with nearly 900 megawatts of aggregate potential capacity, marking a significant step in its transition to digital infrastructure.
- Capital Operations and Share Buybacks: CleanSpark completed a $1.15 billion convertible offering and repurchased $460 million in shares, bringing total buybacks to over $600 million since December 2024, reducing outstanding shares by approximately 20%, thereby enhancing shareholder value.
- Future Outlook and Market Demand: Management expects to shift from portfolio formation to commercialization milestones, emphasizing that the AI data center business will provide stable cash flows and high margins, and remains confident in signing contracts despite Bitcoin market volatility.
See More
