Market Overview - The cryptocurrency market experienced a significant decline, with major digital assets falling sharply and liquidations increasing, undermining expectations for a year-end "Santa rally" [1][12] - Bitcoin's price dropped over 3% in 24 hours, falling from nearly $90,000 to approximately $85,833, marking its lowest level since December 1 [2][13] - Ethereum and XRP also saw declines, with Ethereum down more than 4% to around $2,955 and XRP falling roughly 4.5% to $1.90, its weakest price this month [3][12] Liquidations - The sell-off resulted in a surge of liquidations, with approximately $573 million in crypto positions wiped out in the last 24 hours, predominantly from long positions totaling around $486 million [4][5] - Bitcoin led the liquidations with about $205 million, followed by Ethereum at approximately $156 million [5][4] Stock Market Reaction - The overall cryptocurrency market lost more than 3% of its value in a single day, contrasting with minimal movement in stock markets, where the S&P 500 was down about 0.1% and the Nasdaq slipped roughly 0.3% [7][12] Impact on Crypto-Related Stocks - Crypto-related stocks faced significant pressure, with Bitcoin miner CleanSpark falling about 15%, crypto exchange Gemini down 12%, and Ethereum treasury firm BitMine Immersion Technologies down roughly 8% [8][14] - Coinbase shares slid more than 5%, while Robinhood experienced a decline of less than 2% [8][14] Market Sentiment and Accusations - As prices fell, there were accusations of coordinated selling on social media, with claims that entities like Binance and Wintermute were involved in dumping large amounts of Bitcoin, leading to over $100 million in long positions being liquidated in minutes [9][14] - Some analysts argued that the sell-off was a result of normal liquidity flows and user-driven selling rather than manipulation [9][14] International Developments - Traders are monitoring developments from Japan, where the Bank of Japan has indicated it may start selling portions of its exchange-traded fund holdings as early as January, potentially affecting market dynamics [10][11] - The anticipated gradual sell-off of about $2.1 million to $2.3 million per year aims to avoid unsettling markets, with implications for the yen carry trade as Japanese bond yields rise [11][10]

Market Overview - Bitcoin mining equities experienced a decline of approximately 10% following a significant drop in bitcoin prices, which fell from $89,474 to $87,024.78 within an hour [1] - The decline in bitcoin prices coincided with reports of forced closures of cryptocurrency mining operations in China [1] Regulatory Impact - The Chinese Communist Party (CCP) has intensified its crackdown on bitcoin mining, resulting in the shutdown of 1-2 GW of mining operations in Xinjiang, equating to a loss of 100 EH/s in bitcoin mining hashrate, or 1/12th of the network's total computing capacity prior to the crackdown [2] Company Performance - CleanSpark (NASDAQ: CLSK) reported the largest decline among publicly traded bitcoin miners, with shares falling 13.83% to $12.09 [3] - TeraWulf (NASDAQ: WULF) also saw a significant decrease, with shares down 12.56% to $12.53 [3] - Cipher Mining (NASDAQ: CIFR) shares retreated 12.46% to $14.93, while IREN (NASDAQ: IREN) lost 9.59% to $36.28 [4] - Riot Platforms (NASDAQ: RIOT) dropped 6.99% to $14.23, and MARA (NASDAQ: MARA) fell 6.81% to $10.74 [4] - Galaxy Digital (GLXY) experienced a moderate decline of 5.05% to $25.40, while Core Scientific (NASDAQ: CORZ) showed resilience with a smaller decline of 4.78% to $15.74 [4]

Core Viewpoint - CleanSpark's recent stock performance shows a decline of 5.33% in the latest session, contrasting with the broader market trends, while the company has seen a significant appreciation of 23.71% over the past month [1] Financial Performance - The upcoming earnings report for CleanSpark is anticipated to show an earnings per share (EPS) of -$0.07, indicating no change from the same quarter last year, with projected revenue of $197.93 million, reflecting a 21.94% increase year-over-year [2] - For the entire fiscal year, the Zacks Consensus Estimates predict an EPS of $0.26 and revenue of $858.9 million, representing a decline of 63.38% in earnings and an increase of 12.08% in revenue compared to the previous year [3] Analyst Estimates and Market Sentiment - Recent adjustments to analyst estimates for CleanSpark are crucial as they often indicate short-term business trends, with positive revisions suggesting an optimistic outlook [4] - The Zacks Rank system, which evaluates these estimate changes, currently places CleanSpark at a rank of 3 (Hold), with a notable decrease of 66.84% in the consensus EPS estimate over the past month [6] Valuation Metrics - CleanSpark is currently trading at a Forward P/E ratio of 57.89, which is significantly higher than its industry's Forward P/E of 12.42, indicating a premium valuation [7] - The Financial - Miscellaneous Services industry, to which CleanSpark belongs, holds a Zacks Industry Rank of 85, placing it in the top 35% of over 250 industries [7][8]

Core Insights - Multiple Bitcoin mining stocks are experiencing gains as network difficulty decreases and Bitcoin prices improve, leading to better mining revenues [1] - Year-to-date performance shows significant gains for several companies, with IREN leading at 357% [3] Company Performance - MARA gained 11.97% this week, followed by CleanSpark at 11.75%, Core Scientific at 5.56%, and Hut 8 at 1.04% [2] - American Bitcoin saw a significant drop of 42.38% due to an investor unlock, while IREN fell by 4.13% after a convertible note announcement [2] - Year-to-date, IREN has a 357% gain, Terawulf at 154%, and Hut 8 at 104%, while MARA is down 28% for the year [3] Mining Economics - Hashprice has dropped below $40 per petahash per day, indicating that operator revenues are at a new low despite the decrease in mining difficulty [3] - The average machine operates at 32 joules per terahash, with a break-even hashcost of approximately $38.40 per petahash per day at a power cost of $0.05 per kilowatt-hour [4] - Many miners are close to or below profitability, potentially needing to rely on cash reserves or reduce operations to manage costs [4] Monthly Mining Reports - Riot and CleanSpark reported 428 and 587 Bitcoin mined in November, respectively, while Cango mined 546 Bitcoin, slightly lower than the previous month [5] - Bitdeer, a Bitcoin miner and ASIC manufacturer, is facing a lawsuit regarding alleged miscommunications about its new unit's performance and production timelines [5]

Core Viewpoint - The U.S. cryptocurrency mining companies experienced a significant rebound in stock prices, indicating positive market sentiment towards the sector [1] Group 1: Company Performance - Applied Digital (APLD.US) saw an increase of over 5.8% in its stock price [1] - Cipher Mining (CIFR.US) rose by more than 5.6% [1] - CleanSpark (CLSK.US) and IREN Ltd (IREN.US) both experienced gains exceeding 3% [1]

Core Insights - CleanSpark, Inc. (CLSK) is transitioning from Bitcoin mining to a diversified digital infrastructure model, with a focus on AI and high-performance computing (HPC) by 2025 [2][4] - The company possesses a significant electricity and land portfolio of 1.3 gigawatts across the U.S., which is increasingly valuable due to rising demand for computing power [3] - CleanSpark aims to establish a "digital infrastructure platform" to meet the growing demand for AI computing, expecting AI data centers to provide stable, high-margin revenues [4] Company Strategy - CleanSpark's fiscal 2025 roadmap outlines a structured expansion plan through 2026-2028, focusing on portfolio scaling, large-scale commissioning, tenant diversification, and multi-campus development [5] - The global HPC market is projected to grow from $57 billion in 2024 to $87.31 billion by 2030, presenting a timely opportunity for CleanSpark's expansion [5] Competitive Landscape - CleanSpark faces increasing competition from Marathon Digital (MARA) and Cipher Mining Inc. (CIFR), both of which are enhancing their AI and HPC capabilities [7] - Marathon Digital is acquiring a controlling stake in Exaion to accelerate its AI and HPC expansion, leveraging its global data-center footprint [8] - Cipher Mining is also expanding into AI and HPC, securing long-term contracts with major players like AWS and Fluidstack, which positions it strongly in the market [9] Financial Performance - CleanSpark's shares have increased by 48.9% year-to-date, contrasting with a 7.3% decline in the Zacks Finance – Miscellaneous Services industry [10] - The Zacks Consensus Estimate for CleanSpark's fiscal 2026 revenues is projected at $858.9 million, reflecting a year-over-year increase of 12.1% [6] Valuation Metrics - CleanSpark trades at a forward price-to-sales ratio of 4.05, which is higher than the industry average of 3.18 [14] - The Zacks Consensus Estimate for CleanSpark's fiscal 2026 earnings is currently at 33 cents per share, indicating a 53.5% decline compared to the previous year [17]

Core Insights - CleanSpark, Inc. reported significant growth in its Bitcoin mining operations, producing 587 Bitcoin in November 2025 and increasing contracted power by nearly 11% to over 1.4 GW [1] - The company announced transformative fiscal year 2025 results with revenues exceeding $766 million [1] - CleanSpark successfully closed a $1.15 billion zero-coupon convertible notes offering, which included repurchasing approximately 30.6 million shares for $460 million [1] Financial Performance - Fiscal year 2025 revenue reached over $766 million, indicating strong financial performance [1] - The company produced a total of 7,124 Bitcoin in calendar year 2025 [1] - Total Bitcoin holdings as of November 30, 2025, were 13,054, with 2,374 Bitcoin posted as collateral [1] Operational Highlights - CleanSpark's operational hashrate reached 50 EH/s, with an average operating hashrate of 47.4 EH/s [1] - The peak single-day Bitcoin production was recorded at 20.44 Bitcoin, with an average daily production of 19.54 Bitcoin [1] - The deployed fleet consisted of 246,104 miners, achieving peak efficiency of 16.07 J/Th [1] Power and Infrastructure - The company has a power portfolio of 1.45 GW under contract, with 808 MW utilized concurrently [1] - CleanSpark is focused on expanding its power and land portfolio, developing data center infrastructure, and optimizing its operations for better returns [1] Strategic Initiatives - CleanSpark is evolving its AI strategy and aims to enhance its digital asset management and derivatives trading activities [2] - The company is positioning itself to rapidly lease existing capacity while maintaining flexibility to shift hashrate to optimal segments of its portfolio [1]

Core Insights - Many impressive growth stocks enter public markets after achieving substantial size [1] Company and Industry Summary - Growth stocks often have significant growth before going public, indicating a trend where companies reach a considerable scale prior to their IPOs [1]

cleanspank raised $1.15b in november to front-run msci excluding bitcoin miners from indices january 15. $11.6b in passive funds must dump clsk, riot, mara if they hold over 50% crypto assets. clsk immediately bought back $400m of stock knowing the forced selling is coming. they're buying their own dip before institutions are forced to create it ...

Core Insights - CleanSpark has transitioned from a bitcoin mining company to a significant player in the AI services sector while maintaining its core bitcoin mining operations [2][3] - The company reported a substantial financial turnaround in fiscal year 2025, achieving $766 million in revenue and a net profit of $364.5 million, compared to a net loss of $145 million in the previous year [4] - CleanSpark's strategy includes acquiring distressed assets, which has been effective in both bitcoin mining and its planned expansion into AI [8] Financial Performance - In fiscal year 2025, CleanSpark mined 7,873 BTC, generating $766 million in revenue and a net profit of $364.5 million, marking a significant recovery from a net loss of $145 million in FY2024 [4] - The adjusted EBITDA increased from $245.8 million in FY2024 to $823.4 million in FY2025, indicating strong operational performance [4] - The marginal cost to mine a bitcoin is reported to be under $43,000, suggesting healthy profit margins despite a decline in hashprice [5] Operational Metrics - CleanSpark operates over 266,000 ASIC miners, producing 50 EH/s with an energy efficiency of 16.07 J/TH, and forecasts an increase to 57 EH/s by the end of 2025 [6] - The company has maintained a margin of around 55%, consistent with the previous year, allowing it to fund expansions through cash flow without issuing new equity [6] Asset Holdings - CleanSpark currently holds 13,033 BTC, valued at approximately $1.12 billion, with around 5,444 BTC posted as collateral [7]