The Market Dislikes CleanSpark's Convertible Notes (Rating Downgrade)
2025-11-15 18:25
Summary CleanSpark recently raised $1.15 billion via zero-interest convertible notes to fund an HPC/AI pivot and executed a significant share buyback. CLSK's net dilution from the convertible offering is about 10%, but the market reacted negatively, with shares dropping over 26% since the announcement. Based on updated book value estimates, CLSK trades at a P/B ratio of 1.6-1.7, which is not historically cheap and may compress further. Given ongoing Bitcoin price weakness and mining headwinds, I recommend waiting for a better entry point before considering CLSK as a swing trade. It has been over six months since I last covered CleanSpark ( CLSK ) for Seeking Alpha. At that time, the stock was trading at about $8 per share, and I called it a speculative 'buy' based on a technical breakout in the price of Bitcoin ( BTC-USD ) that I thought would propel CLSK shares higher. Data by YCharts...
