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CleanSpark’s Hashrate Surge: A Bitcoin Mining Breakthrough or Bubble?

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Written by Timothy Sykes Reviewed by Jack Kellog Fact-checked by Ellis Hobb
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A recent surge in CleanSpark Inc.’s stock is driven by increased public confidence in its strategic expansions and favorable developments in the energy sector. On Tuesday, CleanSpark Inc.’s stocks have been trading up by 7.4 percent.

Key Highlights and Recent News

  • A remarkable stride by CleanSpark in the crypto space as they recently hit 30 exahashes per second in their operational hashrate, boasting an impressive 200% growth since October 2023. This growth is a result of organic developments, strategic acquisitions, and pivotal technological upgrades.

Candlestick Chart

Live Update at 14:33:37 EST: On Tuesday, November 05, 2024 CleanSpark Inc. stock [NASDAQ: CLSK] is trending up by 7.4%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • The October bitcoin mining update revealed that CleanSpark managed to mine 655 bitcoins, bringing their annual total to a hefty 5,734 bitcoins. Additionally, they flaunted their resilience with 8,7011 bitcoins held by October’s end, emphasizing their growing treasury of digital currency.

  • An acquisition deal with GRIID Infrastructure Inc., anticipated to further amplify CleanSpark’s mining power, is on the horizon. This, paired with the forecasting of reaching over 37 EH/s before 2025, sets the stage for monumental expansion.

Quick Overview of CleanSpark’s Earnings and Financial Metrics

Peering deep into CleanSpark’s recent financial performance reveals a tapestry of intriguing figures and potential. The company’s earnings report, reflective of a whirlwind of investment and strategic maneuvering, underscored both achievements and challenges. Revenue reported was nearly $170M, with profitability ratios evidencing difficulties with a negative 44.63% profit margin. These numbers suggest an arduous yet hopeful journey toward profitability, akin to sailing on tumultuous seas with a promising horizon in sight.

More Breaking News

Recent stock movements witnessed on the daily trading floor cast further light on CleanSpark’s dynamic nature. Stock prices oscillated, akin to a bouncing ball, with noted inflections at key levels, indicating an expanding interest yet persistent doubts among market participants. On Nov 5, price opened at $10.20 with an eventual close at $10.525, hinting at tempered optimism amongst investors fueled by robust operational updates and strategic forward-looking plans.

Market Impact and Long-Term Growth Potential

CleanSpark’s aggressive pursuit of scaling its mean hash power is much like a sprinter breaking records while staying mindful of endurance. Reaching significant benchmarks, such as 30 exahashes per second, positions the company as a formidable force in the lucrative yet competitive field of bitcoin mining.

Underpinning this performance is a mix of the company’s advanced tech upgrades enhancing efficiencies–a nearly 20% improvement–and ambitious anticipations of extending their mining prowess to beyond 50 EH/s. The acquisition of GRIID Infrastructure promises to be a game-changer, potentially propelling CleanSpark into even higher echelons of the mining hierarchy.

However, the fervor to escalate has not come without financial stamina and resilience challenges. The intricate dance of operating capital and returning substantial shareholder value amidst an ongoing expansion is likened to juggling with skill and anticipation, always aiming to balance growth with stability. Despite these hurdles, the financial landscape suggests a cautious yet optimistic script for CleanSpark. High revenue growth percentages, emphasized asset turnover ratios, and a sound balance sheet with minimal long-term debt, offer a fertile ground for further growth.

Concluding Thoughts

As the curtain falls on our analysis, CleanSpark’s journey through the financial cosmos continues to dazzle with displays of ambition, innovation, and a keen eye on future horizons. Investors, corporations, and market participants will undoubtedly watch closely as CleanSpark maneuvers through the shifting landscapes of crypto-mining.

In this vibrant scene of technology and financial interplay, CleanSpark represents more than just a company; it’s a narrative of strategic evolution, bold plays, and market resilience. Traders and market moguls might find themselves contemplating whether CleanSpark’s trajectory is a sustainably soaring flight or a bubble building up for an eventual burst. One thing’s for certain, as CleanSpark continues to light the path in the crypto-verse, its chronicle of growth and challenges awaits, promising interest and intrigue for all those who follow.

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”