Invest ideasNews
12 May 2026, 22:20
Marathon Posts $1.3B Loss as Bitcoin’s 18% Slide Cuts Q1 Revenue by $35M
Marathon Holdings reported a challenging first quarter for 2026, characterized by a significant net loss despite strategic efforts to reduce debt and pivot toward artificial intelligence (AI). Surge in Operating Costs Digital infrastructure company Marathon Holdings attributed a decline in revenue in the first quarter of 2026 to a decrease in the U.S. dollar value
12 May 2026, 19:06
CleanSpark: Unconvincing Pivot To AI Infrastructure
Summary CleanSpark, Inc. is attempting a partial pivot from Bitcoin mining to AI infrastructure amid the 2026 AI arms race. I remain unconvinced by CLSK’s fundamentals despite a recent share price rally and reiterate my sell rating. CLSK’s profitability is pressured by higher expenses and volatile revenues tied to weak bitcoin prices. The company’s financials remain unpredictable, with earnings heavily influenced by bitcoin price swings and production yields. Rivals like CoreWeave have access to tremendous amounts of capital at favorable rates, while CleanSpark's volatile business and existing debt load may limit its access to fresh financing. In 2026, the biggest trend driving the stock market is the AI arms race, which has fueled a sharp share price boom in every company supplying the datacenter buildout. Even companies in industries completely uncorrelated to technology, like Allbirds ( BIRD ), have announced their intent to get in on the new gold rush and provide AI infrastructure. In relation to Allbirds, CleanSpark, Inc.'s ( CLSK ) planned partial pivot from bitcoin mining to AI infrastructure is far more realistic and convincing. The question is, can it really save this unprofitable business, especially as crypto prices remain weak? Hopes for the planned AI pivot have already boosted shares of CleanSpark, now up ~10% since the start of the year (though the stock's post-Q2 decline has dented this rally considerably). Data by YCharts I last wrote a Sell article on CleanSpark in February, when the stock was trading at $8 per share. Since then, CleanSpark has rallied sharply alongside the broader stock market as the "risk-on" attitude in the markets resumed. I fully admit that my Sell call was ill-timed, but when I take a fresh look at CleanSpark's prospects after its recent Q2 earnings results, I remain wholly unconvinced that this company has the fundamental chops to succeed. I reiterate my Sell rating here. Higher Expenses Are Burdening CleanSpark's Profitability Amid Bitcoin Price Slide Before we laser in on CleanSpark's future AI infrastructure plans, let's run through the company's latest quarterly results , which caused a sharp drop in sentiment for the name. The fiscal Q2 (March quarter) earnings summary is shown below: CleanSpark Q2 results (CleanSpark Q2 earnings release) Now, we caution investors who are new to CleanSpark that its financials are hardly clean. It cannot be assessed like a regular company, which has a steady earnings cadence. CleanSpark's revenue fluctuates wildly according to Bitcoin prices (BTC-USD) and production yield, and it books mark-to-market losses and gains on its Bitcoin holdings as well. So in the wake of very jumpy financials, we focus on two main things in CleanSpark's results: the economics of its mining activities and its expense profile and resulting losses. CleanSpark used to directly state, from time to time, the actual cost of mining a single Bitcoin. It no longer provides this number, but it did note that lower power costs/higher electrical efficiency helped to offset the rising difficulty of mining (as all crypto investors are aware, mining difficulty will continue to increase exponentially until all 21 million Bitcoin are mined, expected to be reached in the year 2140). For Q1, the company merely notes that its gross margin was around 40%, which implies a cost per coin of ~$30k based on average Q2 Bitcoin prices of $76k. Per CFO Gary Vecchiarelli's remarks on the Q2 earnings call: The average bitcoin price in Q2 was approximately $76,000, which was a 24% difference from the prior quarter where the average bitcoin price was $100,000. For the quarter, our revenue decrease compared to the immediately preceding first quarter by approximately $45 million or 25%, directly attributable to the decrease in Bitcoin price. During the quarter, we mined 1,799 Bitcoin, which was only 22 Bitcoin less than the prior quarter, indicating network hashrate growth has flattened, while our operations team has maintained its industry-leading uptime. Despite the lower revenues, we maintained a healthy gross margin of over 40% for the quarter compared to 47% for the previous quarter. Power prices were more favorable this quarter at $0.052 per kilowatt hour compared to $0.056. Best-in-class team continues to execute and deliver regardless of the market climate." The good news is that mining remains a marginally profitable activity for CleanSpark. But whether the overall business can actually turn a profit is another question. In Q2, the company reported a -$241.2 million adjusted EBITDA. Of course, the quarter also included $262.9 million of mark-to-market losses on Bitcoin, so when adjusting for these non-cash "expenses," the company eked out a ~$22 million profit. CleanSpark adjusted EBITDA (CleanSpark Q2 earnings release) We are wary here about the slimness of CleanSpark's profitability, which exposes it to variability in Bitcoin prices. We note that GAAP payroll expenses rose 63% y/y to $24.9 million in the quarter, reflecting a heavier overhead burden, while depreciation/amortization also jumped 47% y/y to $115.9 million, reflecting the company's larger capital base as it acquires more compute capacity. On top of this, we think that risks skew upward for CleanSpark's cost profile: increased Bitcoin mining difficulty is a known fact that will hamper gross margins, and electricity prices are rising amid insatiable demand for AI compute. The company faces upward pressure on costs/downward pressure on gross margins, which effectively means that it relies on a rise in Bitcoin prices to keep up with these headwinds. For the month of April, we note that CleanSpark produced 640 Bitcoin, which is a sequential drop of 3% relative to 658 Bitcoin produced in the month of March. As a reminder, CleanSpark is no longer emphasizing its hold-for-investment strategy and plans to sell BTC at roughly the same pace as its mining inflows, with net sale activity of 108 BTC leading to a slight sequential drop in CleanSpark's Bitcoin treasury holdings as well. CleanSpark April results (CleanSpark April metrics release) Average sale prices in April were ~$75k, but with Bitcoin prices recently hovering around $80k (as of the time of writing in May), we think there is likely upside in CleanSpark's Q3 relative to ~$76k average sale prices in Q2. AI Expansion Issues: Insufficient Mining Profitability, Debt-Laden Balance Sheet Now we turn our attention to CleanSpark's ambitions to pivot a portion of its portfolio to AI infrastructure. As shown in the April metrics release, the company has utilized 808MW of its capacity but has contracted an expansion of up to 1.8GW (more than twice its current capacity). The company's vision is that its bitcoin mining activities become the foundation of the business that finances the buildout of AI infrastructure. Again, per CFO Vecchiarelli's comments on the Q2 earnings call: As we expand into AI and HPC, we are building on mining, not moving away from it. Both businesses share the same foundation, power, land and operations. Mining funds the platform, AI monetizes it. Together, they create a more balanced, durable business. And as we evolve, mining is the engine that funds our future growth." Our skepticism here: can mining really "fund the platform" when adjusted EBITDA in Q2 was -$241.2 million (or ~$22 million after adding back mark-to-market losses on Bitcoin?). The gap, of course, will have to be solved via financing. But we note that CleanSpark is already shouldering a considerable amount of debt. Its March balance sheet showcases $1.79 billion of long-term debt, offset against $260.3 million of cash. Its current holdings of 13,453 BTC as of the end of April are worth $1.08 billion at current prices near ~$80k, adding an additional buffer to cash. CleanSpark balance sheet (CleanSpark Q1 earnings release) We think it will be difficult for CleanSpark to attract additional financing beyond its current leverage. Credit markets are tightening, especially for volatile businesses, especially with the meltdown in private credit funds . As is evident from the amount of capex required for the datacenter buildout, the AI infrastructure game is really all about capital. CoreWeave ( CRWV ), one of the leading neocloud infrastructure providers, has kicked off a new financing structure with its lenders that allows it to use the underlying credit profile of its hyperscale customers, rather than its own (allowing it access to cheap financing). Meanwhile, CleanSpark hasn't even landed its first hyperscale customer, with its April metrics release noting that it is "(making) significant headway toward securing our first hyperscale customer in AI and high-performance computing." If the company is able to secure financing at all, it likely will be at terms that are quite unfavorable relative to leaders like CoreWeave. Key Takeaways CleanSpark's share price rebound this year is essentially predicated on the company's planned expansion into AI infrastructure, which is the hottest industry of 2026. And yet the company enters into the industry with the baggage of a mining operation that has very thin/volatile profitability, while CleanSpark has yet to prove that it can access the capital markets to finance its expansion at comparably favorable terms as rivals like CoreWeave. All in all, there are few fundamentals to justify CleanSpark's rebound, and its post-Q1 earnings drop is a reflection of that poorer reality. Steer clear here and invest elsewhere.
12 May 2026, 18:30
Crypto Founder Shares Critical Warning About Bitcoin, Here’s What He Said
Bitcoin is currently at the center of a debate after Avalanche founder Emin Gün Sirer raised concerns about the network’s long-term security and mining economy . In a recent X post shared on May 10, 2026, the crypto founder argued that BTC could eventually face a serious challenge tied to declining miner incentives . His comments have quickly sparked discussions on what this could mean for Bitcoin’s future stability. Bitcoin Mining Pressure Builds The warning from the crypto founder centered on a growing concern that has followed Bitcoin for years but is now attracting renewed attention as block rewards continue to shrink. Bitcoin miners currently secure the network by verifying transactions and maintaining the blockchain through energy-intensive mining operations . In return, miners receive newly issued BTC alongside transaction fees. However, Bitcoin’s halving system cuts mining rewards in half every four years. While this system helps control BTC’s supply and supports its scarcity, it also reduces the amount miners earn over time. Sirer warned that this could eventually create a difficult situation for BTC where mining rewards are no longer enough to cover the high costs of electricity, equipment, and mining operations. The concern becomes more significant because Bitcoin’s security depends heavily on miner participation. If mining becomes less profitable over time, smaller mining firms could struggle to survive , potentially forcing some operators out of the market. This could reduce competition among miners and increase centralization risks, something critics have warned about for years. The Avalanche founder also pointed toward a future where transaction fees may eventually become the main source of income for miners. However, that could create another challenge if fees become too expensive for everyday users or fail to generate enough revenue to maintain strong network security. Crypto Founder Suggests New Direction For BTC As discussions around the warning grew, attention also turned to the solution proposed by the crypto founder. Sirer suggested that BTC could eventually use an extra transaction layer connected to Avalanche technology before transactions are fully completed on the Bitcoin network. The goal of the idea is to reduce pressure on Bitcoin’s current system while helping transactions move through a faster and more efficient verification process. Even though the technology behind it is complex, supporters believe it could help BTC handle future challenges linked to declining mining rewards and growing network demands. However, the proposal may not easily gain support from the BTC community. Many long-time BTC supporters are known for opposing major changes to the network , especially when outside technologies or different consensus systems are involved. Even so, the warning highlights a broader concern already being discussed across the crypto industry. Some investors believe Bitcoin’s increasing price and future transaction activity could eventually solve the problem naturally. Others believe declining miner rewards could become a serious long-term issue if solutions are not presented early enough.
12 May 2026, 16:23
Mining Giant MARA Offloads Massive Amount of BTC
MARA Holdings has executed a substantial strategic shift, offloading 3,386 BTC in Q1 2026 to capitalize on the surging demand for Artificial Intelligence (AI) and high-performance computing (HPC) infrastructure.
12 May 2026, 14:45
Bhutan on the way to zero BTC by September with latest 100 BTC selloff
Bhutan has moved 100 BTC worth $8.1 million out of its holding wallets, continuing a steady liquidation that blockchain analytics firm Arkham Intelligence says will empty the country’s entire Bitcoin reserve before the end of September. Since the start of 2026, the Himalayan kingdom has now sold $230.39 million worth of Bitcoin, while it currently holds $252 million worth of the cryptocurrency. It is reportedly selling at an average pace of about $50 million per month, a pace that will clear its remaining stash in five months. Bhutan’s crypto reserve. Source: Arkham Intelligence. A sovereign seller in slow motion According to reports, Bhutan has been offloading BTC in measured tranches throughout the year, often routing coins through Singapore-based trading firm QCP Capital. In March alone, the government moved over $120 million in Bitcoin across multiple transactions, including a single 519.7 BTC transfer valued at $36.75 million. Its reserve peaked at 13,295 BTC in October 2024. Druk Holding and Investments is the state-owned investment arm that manages Bhutan’s digital assets, and it has not published any timelines for how it will offload its BTC holdings or if it has any intentions of emptying the treasury. Bhutan’s crypto reserve. Source: Arkham Intelligence. Bhutan routes investments into Gelephu Mindfulness City In December 2025, King Jigme Khesar Namgyel Wangchuck announced the allocation of up to 10,000 BTC (then worth approximately $1 billion) toward Gelephu Mindfulness City (GMC) , a special administrative and economic zone under development in southern Bhutan. The king stated that the commitment was “for our people, our youth, and our nation” during his National Day address. At the time, officials said deployment would be gradual and governed by “strict oversight, transparency, and prudence,” with options including using Bitcoin as collateral or deploying treasury yield strategies. As of today, May 12, GMC is now making moves to bring firms into the country, having launched an accelerated licensing pathway for firms that are already regulated in major financial centers, including Singapore, Abu Dhabi Global Market, and Hong Kong. The program brings together regulatory approval and banking, as companies that incorporate and receive a license in GMC are also granted a corporate account with DK Bank. DK Bank supports multi-currency accounts across nine currencies, digital asset services including BTC-backed lending, and integrated fiat-to-crypto on- and off-ramps, with banking fees fully waived for at least the first six months. GMC’s latest framework also comes with incentives such as 0% corporate tax for qualifying investments, no capital gains or dividend tax, foreign talent tax exemptions through 2030, and common law structures modeled on Singapore and ADGM principles. Mining slowed, costs doubled Bhutan began mining Bitcoin in 2019 using surplus hydroelectric power generated by its glacier-fed rivers. The operation was run through Druk Holding and Investments, and at its peak, helped the small nation of 750,000 accumulate one of the largest sovereign BTC positions in the world. However, the April 2024 block reward halving doubled the cost of producing each coin. Bhutan’s mining output experienced a significant drop when compared to 2023, a period when the country mined an estimated 8,200 BTC. The last on-chain deposit exceeding $100,000 into wallets in Bhutan occurred more than 12 months ago, raising questions about how active its mining operations are currently. Bhutan is not the only miner that has seen revenue drop while operational costs continue to rise. Publicly traded miners , the latest being DMG Blockchain Solutions, Bitdeer, and MARA Holdings, have all disclosed selling mined BTC to fund operations or pivots into AI infrastructure, according to recent quarterly filings. The economics that made hydro-powered mining profitable for Bhutan have changed, and it is no longer sustainable. The same economics have also pushed commercial miners to rethink their business models. Arkham projects that Bhutan would exhaust all its BTC holdings by the third quarter of 2026 if it sells all its current BTC holdings at $50 million per month. The country could exit the market with around $767 million in total on-chain profit if it sells all remaining holdings near the current BTC price of approximately $81,000. The smartest crypto minds already read our newsletter. Want in? Join them .
12 May 2026, 14:38
Bhutan Accelerates Bitcoin Selloff As Government Strategy And Mining Giants Signal Shifting Market Dynamics
Bhutan has continued its routine selling of Bitcoin, and it raises all kinds of questions about their master plan, the timing in the markets, and what this might signal for state level crypto adoption. Likewise, private enterprises like MARA Holdings are making similar changes, further supporting the view that both governments and institutions are adjusting their investment in the most impactful digital currency of our time. Bhutan Transfers Additional 100 Bitcoin In Latest Movement On-chain data shows that Bhutan has moved 100BTC, worth around $8.1 million, out of its wallets in the last couple of days. The transaction spotted by blockchain analytics firm Arkham Intelligence is one in a number of transfers that shows a repeated selling pattern. A 100 BTC transfer may seem insignificant in a vacuum, but given the larger context it tells a different story. This transaction is simply one element of a continuous liquidation plan occurring in carefully measured installments over the course of 2026. Bhutan is selling Bitcoin. Bhutan just moved 100 BTC ($8.1M) out of its holding wallets. At their current rate of selling, they will run out of BTC before the end of September. pic.twitter.com/z8P7yf0kzS — Arkham (@arkham) May 12, 2026 Year-to-date, $230 Million Sold Is A Strong Indicator Of Structured Exit Notably, Bhutan has sold a total of around $230.39 million in Bitcoin since the beginning of the year. Even after such a large sale, the country is still holding about $252 million of BTC on its balance sheet, suggesting that while this selloff was evidently large, it was not the end of the story. What is seen is a controlled mannered approach as opposed to an overnight liquidation. It seems Bhutan has some sort of strategy to pace its sales by selling in a way to minimize the impact on the market while still slowly taking profits. If the current sales pace of about $50 million per month in Bitcoin persists, the trajectory indicates a complete exit over the next few months. If Bhutan continues to sell at the same pace, it is expected that this leaving Bitcoin could run out by late September. This timeline has turned into an important point of reference for analysts trying to decipher the long-term aims of the country. An exit of this size would mark one of the biggest Bitcoin divestments on a sovereign level, and raise immediate interesting inquiries about where digital assets fit into national reserve structures. At current market prices for Bitcoin, the total liquidation of Bhutan could reach an estimated on-chain profit of $767 million, representing a massive profit since its original accumulation. Sovereign Strategy Reflect Profit-Taking and Risk-Management In this context, Bhutan has some semblance of a balancing act between taking profits and having an eye on risk management. The country, which has said it gained some of its Bitcoin during previous market cycles, unconfirmed reports say through green energy-based mining, is now set to secure significant profits. Instead of remaining in a forever hold strategy, Bhutan plans to sell its position and put the funds into other parts of its economy. This stance is in the opposite direction of the “hold forever” belief linked to Bitcoin maximalists, highlighting that sovereigns may have different concerns.In the case of governments, however, liquid requirements, fiscal planning and macroeconomic stability must also be taken into account; things that do not affect individual investors like China. Seen this way, Bhutan’s ongoing unwinding is probably more about prudent fiscal policy than with any decline in faith in Bitcoin as an investment per se. MARA Holdings Events Follow the Footsteps of Institutions MARA Holdings, one of the largest publicly traded Bitcoin mining companies has also reported sales as they mined. MARA has offloaded 3,386 BTC in Q1 2026 but still holds a healthy stack of >35K BTC. The company is now the fourth highest on the widely cited “Bitcoin 100” owner rankings list. MARA's Q1 2026 Shareholder Letter is here. Read the full report: https://t.co/D6xE8OPBWN pic.twitter.com/XFpAgoyOHR — MARA (@MARA) May 11, 2026 This two-pronged strategy of liquidating a modest amount whilst keeping inside a huge position, mirrors that of Bhutan. Meanwhile, they are divesting gradually rather than taking a full divest in one go. Large Sales But Market Impact Still In Check One striking aspect of Bhutan’s selloff is that the reaction by markets has been more muted. Price stayed significantly stable even after allocating hundreds of millions in Bitcoin. This presents strength and maturity within the Bitcoin market. As bid and ask sizes grow larger, the market absorbs them more without moving much as daily trading volumes often exceed $30 billion. The Bhutan and MARA news catch reveals a larger trend: Bitcoin ownership is growing ever more dynamic and complex. The story was all about accumulation in the earlier years, as institutions and governments accumulated reserves. The focus now is moving to active asset management, buy, hold, and then sell according to strategy. This evolution is consistent with how an asset class tends to mature over time. Being bootstrapped into the international finance framework, Bitcoin is treated more and more like a traditional asset class with rebalancing among portfolios, firm repricing and calculation of risk. Defining Moment For Sovereign Crypto Strategies Bhutan’s continuing Bitcoin firesale could set the tone for how governments deal with digital assets from here forward. Will this open the door for other countries to follow steps (treating bitcoin as a strategic reserve, before monetizing their positions, one by one)? Will some choose to hold permanently as a hedge against fiat currency systems though? In the meantime, Bhutan’s actions highlight an important reality: Bitcoin in sovereign terms is still a work in progress. Market participants will watch closely how this plays out as because with September closing in, it is near the time for a complete exit. Perhaps it signifies Bhutan’s long-term engagement with Bitcoin has run its course, or that it has recalibrated its strategic objectives, but whatever the case its impact on the bigger picture is already being defined. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
