New York – Shares of Bitcoin miner CleanSpark, Inc. (CLSK) ended in the red on July 3rd after a volatile trading session that saw the stock spike at the open before completely reversing its gains. The stock closed at $12.25, a loss of 1.84% or $0.23 for the day.
The trading day began with a burst of optimism. CleanSpark opened at $12.65, gapping up from the previous close of 12.96**. However, sellers quickly stepped in at that level, and the stock spent the remainder of the day on a downward trajectory, eventually hitting a low of $12.16 before settling at its closing price. In after-hours trading, the stock saw a marginal recovery to $12.26.
This price action is typical for a stock with CleanSpark’s profile. With an extremely high beta of 4.24, the stock is historically over four times more volatile than the broader market. This means sharp price swings in both directions are common. The company is not yet profitable, with a trailing twelve-month (TTM) Earnings Per Share (EPS) of -1.11.
Despite the intraday weakness, trading volume was slightly lighter than usual, with 20.6 million shares changing hands compared to an average of 27.2 million.
Should You Buy or Sell CLSK Stock Today?
The volatile nature of CleanSpark stock presents distinct arguments for both buyers and sellers, largely dependent on their outlook on the cryptocurrency market.
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Potential for Buyers: Bulls will point to the very optimistic 1-year analyst target estimate of $19.10, which suggests significant potential upside from the current price. As a Bitcoin mining company, CLSK’s performance is heavily tied to the price of Bitcoin. An investor who is bullish on cryptocurrency may see this pullback from the day’s high as a discounted entry point.
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Caution for Sellers: The sharp reversal from the morning high is a technically bearish signal, indicating that sellers are in control. The stock’s extreme volatility and lack of profitability are significant risk factors that may lead cautious investors to sell or avoid the stock.
Our Opinion on CleanSpark (CLSK)
CleanSpark is a speculative investment that serves as a direct proxy for the health of the Bitcoin market. Its stock price is subject to extreme volatility, as evidenced by its high beta and the day’s wild price swing. The investment case for CLSK is not based on traditional valuation metrics like P/E or current earnings, but on the future price appreciation of Bitcoin and the company’s ability to efficiently mine it.
This stock is best suited for investors with a very high tolerance for risk, a strong belief in the long-term viability of cryptocurrency, and the ability to withstand dramatic price fluctuations. It is not recommended for conservative or risk-averse investors.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in the stock market involves risk, and you should consult with a qualified professional before making any investment decisions.
Frequently Asked Questions (FAQ) about CLSK Stock
1. What was the closing price of CleanSpark (CLSK) stock?
CleanSpark stock closed at $12.25, down 1.84% for the trading session.
2. What happened to CLSK stock during the day?
The stock experienced a sharp reversal. It gapped up at the open and spiked to a high of $12.96 before selling off throughout the day to a low of $12.16.
3. Why is CleanSpark stock so volatile?
CleanSpark has a beta of 4.24, meaning it is historically over four times more volatile than the overall market. As a Bitcoin mining company, its price is also heavily influenced by the often-volatile price of Bitcoin.
4. Is CleanSpark a profitable company?
No, based on the provided data, CleanSpark is not currently profitable, with a trailing twelve-month (TTM) EPS of -1.11.
5. What is the analyst price target for CleanSpark stock?
The 1-year analyst target estimate for CLSK is $19.10, which indicates a bullish long-term outlook from analysts despite the current volatility.
6. What is the 52-week price range for CleanSpark?
Over the past 52 weeks, CleanSpark stock has traded in a wide range from a low of $6.45 to a high of $20.49.
