- CleanSpark share price has taken advantage of Bitcoin’s rally.
- The stock more than doubled in 2023 as Bitcoin surged.
- CLSK is working to build its internal trading desk.
CleanSpark stock price started the year in a bearish mode even as Bitcoin mining shares jumped. The CLSK stock retreated to $10.88, which was a few points below last month’s high of $13.54. Like other mining stocks, the shares have surged by more than 440% in the past 12 months giving it a market cap of over $2 billion.
CleanSpark new strategy
CleanSpark is one of the biggest Bitcoin mining companies in the US. It competes with the likes of Marathon Digital, Riot Blockchain, and Cipher Mining. As with these firms, CleanSpark has done well in the past twelve months as the price of Bitcoin has jumped from less than $20,000 to over $45,000.
CleanSpark has had several tailwinds. For example, investors anticipate more Bitcoin demand if the Securities and Exchange Commission (SEC) approves a spot Bitcoin ETF. With BTC supplies in exchanges still low, ETF sponsors will likely turn to mining companies, which hold loads of coins.
CleanSpark has also benefited from the change of tune by the Federal Reserve. After embracing a hawkish tone in the past two years, the bank has signaled that it will start cutting rates later this year. Economists believe that it will start doing that in its March meeting. As a result, most tech companies ended the year in the green.
Internally, CleanSpark’s business did well in 2023. The most recent results showed that the total revenue rose by 28% to $168 million in the last fiscal year, helped by Bitcoin’s performance. This happened as the company mined 6,900 BTCs during the year.
CleanSpark is still in the loss-making category as it lost over $137 million during the year. These losses included the depreciation of its older miners and discontinued operations. CleanSpark’s cost of mining Bitcoins stood at over $12k, meaning that it will continue benefiting as prices rise.
CleanSpark stock price retreated after the company announced plans to launch an internal trading desk this year. The management believes that doing that using its own team is more efficient than relying on other companies. In a statement, the CEO said:
“I think what will happen is miners like ourselves will start having trading desks in-house. That way, you can manage it with your own risk profiles and expertise and keep a really close eye on it.”
CleanSpark stock price forecast
Turning to the daily chart, we see that the CLSK share price has been in a strong uptrend in the past few months. It has jumped from $1.71 when FTX collapsed to over $10 today. Subsequently, the shares remains above the 50-day and 100-day Exponential Moving Averages (EMA).
The Relative Strength Index (RSI) has pointed downwards while the two lines of the MACD indicator have made a bearish crossover. Therefore, in the short term, I expect the shares will have some volatility. I also see it rebounding if the SEC approves a spot Bitcoin ETF and ahead of the halving event.
