CleanSpark(US:CLSK) zacks.comยท2024-05-17 18:55Market Overview - Broad stock market indexes have reached new all-time highs, confirming the current bull market [1] - The S&P 500 experienced a ~6% pullback in April, which was seen as a typical correction before the strong recovery to new highs [1] Bitcoin and Correlation with Stocks - Bitcoin has been acting as a proxy for risk, showing a strong correlation with US equities, particularly technology stocks, with Bitcoin potentially gaining 3-5% for every 1% increase in stocks [3] - Bitcoin's price recently broke out from a bullish wedge/flag pattern, marking the third breakout since October [4] Coinbase Global (COIN) - Coinbase Global is the leading cryptocurrency brokerage in the US, benefiting from increased trading activity in Bitcoin and other cryptocurrencies [6] - Earnings estimates for Coinbase have significantly increased, with FY24 estimates rising from $1.57 to $7.18 per share, earning a Zacks Rank 1 (Strong Buy) [7] - The stock is forming a descending wedge pattern, with a breakout above $220 signaling potential new highs [8] Cleanspark (CLSK) - Cleanspark is a cryptocurrency miner showing strong performance compared to other miners like Marathon Digital and Riot Platforms, being the only one with positive returns year-to-date [12] - FY25 earnings estimates for Cleanspark have been revised from $0.04 to $1.86 per share, a remarkable increase of 4,550%, earning a Zacks Rank 2 (Buy) [13] - Cleanspark is also building a bullish technical pattern, with a breakout level at $17.70 [16] iShares Bitcoin Trust (IBIT) - The iShares Bitcoin Trust ETF offers direct exposure to Bitcoin with lower fees compared to Grayscale Bitcoin Trust ETF, making it an attractive option for investors [17] Investment Considerations - For investors seeking high-growth stocks and willing to accept volatility, Bitcoin and related stocks present a timely investment opportunity due to significant upgrades in brokerage and mining stocks, along with bullish chart setups [18]