Invest ideasNews
10 Feb 2026, 13:30
CleanSpark Gets Attention For The Wrong Reasons, It's The Transition That Matters
Summary CleanSpark (CLSK) is transitioning from pure bitcoin mining to AI and HPC data center development, diversifying revenue streams and reducing earnings volatility. Despite recent earnings misses and negative EPS revisions, I maintain a Buy rating, supported by strong analyst forecasts and anticipated profitability in 2027. Industry-wide earnings cyclicality and recent bitcoin volatility have pressured CLSK, but its robust balance sheet and asset base support the transition strategy. The transformation may enable recurring revenue, less dilution, and REIT-like characteristics, fundamentally altering CLSK’s investment thesis and capital structure. Investment thesis Last week, beginning on Sunday, February 2, 2025, was a busy week for CleanSpark, Inc. ( CLSK ) watchers. On Monday, bitcoin, which the company mines, plunged and the CLSK share price toppled with it. On Thursday, the firm released its latest earnings report. Friday, the share price came roaring back. But there were two other issues of interest to investors: first, a red banner warning on its summary page at Seeking Alpha and second, an ongoing transition that began last fall. I believe the transition is the most important of these issues, and after examining the structural changes that will come out of it, maintain my Buy rating. About CleanSpark A transition is underway at the firm. Previously, bitcoin mining was its sole business, but it is now becoming an AI and HPC (high-performance computing) data center developer. It is assembling land and power assets that serve data center companies. In its 10-K for fiscal 2025 (which ended on September 30, 2025), it stated, “Leveraging our power optimization, land acquisition, engineering, operations and construction expertise, we have been actively pursuing opportunities to develop portions of our sites and power pipeline for AI and HPC hosting and leasing.” And, “This diversification strategy reflects our commitment to leveraging our expertise in energy management, data center operations and large-scale computing infrastructure to address rapidly growing demand in AI and HPC markets.” Latest earnings CleanSpark released its Q1-fiscal-2026 earnings report after the close on February 5, 2026. Those results came out as bitcoin, the only cryptocurrency the firm mines, was falling. According to CNBC on February 5, bitcoin was down nearly 30% on the first four days of the week. It added that the cryptocurrency was falling as U.S. tech stocks sold off sharply. Not all of its troubles were external, though, as its GAAP EPS of minus $1.35 missed estimates by $1.10 and its revenue of $181.2 million missed by $6.53 million. It did not provide guidance. Perhaps in anticipation of the earnings report and the bitcoin price falling farther, investors bid the price down by 10.04% on February 4 and by a whopping 19.13% on the day of the release. The fundamentals included: Quarterly revenues gained 11.6%, to $181.2 million. Net loss for the quarter was $378.7 million or a loss of $1.35 per share; for the same period last year, it recorded net income of $246.8 million or $0.85 profit per share. Adjusted EBITDA declined from $321.6 million Q1-2025 to a loss of $295.4 million in Q1 this year. This five-year chart shows revenue, net income, and basic EPS over the past five years, and its cyclical performance backs up management’s decision to diversify: CLSK revenue, net income, and EPS (Seeking Alpha ) On the balance sheet, CleanSpark had cash of $458.1 million, plus bitcoin valued at $1.0 billion. Total assets came to $3.3 billion while total liabilities were $1.9 billion. While recent quarters disappointed investors, the odds are strong that the share prices are in a trough and may rise sharply again. In the meantime, the Quant system has posted a red warning banner on the CleanSpark summary page. Warning Click on the banner and Quant reports the details: “CleanSpark, Inc. (NASDAQ: CLSK ) has characteristics which have been historically associated with poor future stock performance. CLSK has negative EPS revisions and inferior profitability when compared to other Information Technology stocks, to the point that it gets a Sell rating from our Quant rating system.” Two concerns then, negative EPS revisions and poorer profitability than its peers. We will analyze them in turn. Negative EPS revisions Seven Downs and no Ups. That is the current status of revisions: CLSK revisions table (Seeking Alpha) However, the revisions, which presumably come from the Wall Street analysts followed by Seeking Alpha, are at odds with the same analysts’ forecasts and ratings. Specifically, the 13 analysts have an average one-year price target of $19.43, an increase of 92.76%. Turning to ratings, they have nine Strong Buys and four Buys—not a single Sell or Strong Sell which we might expect from the revisions. As we saw on the revenue-net-income-EPS chart above, earnings have plunged twice before in the past two years, and then shot back up again. Is there any reason to think that won’t happen again? Probably not. If you are considering buying or selling this stock, you should take the negative EPS revisions into account, but it seems counterproductive to give them much weight. Inferior profitability The following chart provides context to explore the idea of substandard earnings. It compares the basic EPS of CleanSpark with those of Riot Platforms, Inc. ( RIOT ), Cipher Mining Inc. ( CIFR ), and Mara Holdings, Inc. ( MARA ): CLSK comparative EPS chart (Seeking Alpha) Two of the three other firms, Riot and Mara, have earnings profiles similar to that of CleanSpark, suggesting the current dip in earnings is an industry, rather than a CleanSpark-specific, issue. Mara also receives a warning banner on its summary page. The next question: Will earnings recover? We’ve already reviewed the cyclical nature of earnings, but bullish investors can also cite the Wall Street analysts’ forecasts: CLSK EPS estimates table (Seeking Alpha) The analysts expect the company to reduce its loss in 2026 and then shoot up to $0.77 in 2027. As for the plunge back down again in 2028, presumably the analyst who provided that estimate expects bitcoin and/or cryptocurrency to be enveloped by another downcycle. Again, be aware of the risk, but don’t let the banner warning necessarily scare you away from CleanSpark. The rebound Bitcoin fell off significantly during the week that began on February 1 (Sunday) and February 2 (first regular trading day). It bottomed out at around $60,000. But the low was short-lived; on February 6 it jumped from around $62,850 to $70,560, and by Sunday, February 8 it closed at $70,900. Along with bitcoin, its miners also jumped. CleanSpark was up 21.95% on Friday, February 6, erasing at least part of its losses earlier in the week. And, it wasn’t alone: the biggest bitcoin miner, Strategy ( MSTR ), gained 21%, Riot jumped 19.82%, Cipher picked up by 15.98%, and Mara rose 22.44%. While CleanSpark’s rebound was not enough to get it back to the levels of last October (it peaked at $23.61 on the 15 th of that month), it would have raised investor hopes. It would also remind us of the inherent volatility of cryptocurrencies and their miners. A look at the analysts’ forecasts should also cheer investors, with a forecast that the company will achieve profitability in calendar 2027 (as noted, one analyst thinks it will record a loss in calendar 2028). The transition I believe shareholders should take more interest in the transition than in the warnings or in the volatile share price. As the transformation proceeds, CleanSpark will change significantly. The company said in an October 20, 2025 news release , “This strategic evolution will diversify the Company's revenue streams, strengthen long-term cash flow potential, and enhance its ability to serve the world's leading technology companies.” First, its revenue, and probably earnings, should become less volatile, with cyclical mining revenues being replaced by recurring data center revenues. Second, with a steadier revenue and perhaps earnings, profile, it should be able to use operating cash flow and retained earnings more and equity raises less often. That will mean, among other things, less dilution of shareholders’ equity. Third, with steadier revenue streams and more physical assets, the firm will likely use more debt, since assets like data centers make good collateral. Since data center space is in high demand, the company may be able to negotiate for lower rates on longer-term borrowing. Fourth, CleanSpark may be able to generate annual recurring revenue that makes its financial results more predictable. Steady revenue and earnings could, in turn, lead to dividends and share repurchases. Fifth, it may come to look more like a real estate investment trust than a miner. Assuming it keeps using mining to generate cash flow, it might end up being a hybrid miner-real estate trust. As a result, the rationale for being a CleanSpark investor could be quite different a year or two from now. I think the company will deliver on its transition plan, opening new investment opportunities, leading me to maintain my Buy rating. Risk factors It is possible my interpretation of the Quant warnings is incorrect, that I may have overestimated its ability to rebound. Perhaps the EPS revisions should be given more weight than the bullish analysts’ target price. In a similar vein, I may be incorrect in looking at its earnings as being cyclical. I have assumed that the transition from mining to data center development will be successful. It is possible macroeconomic or technological advances will depress the need for this space. The transition also assumes good execution on the part of the firm and senior management. Perhaps management changes, whether voluntarily or through an activist investor, or the delivery of space and power turns out to be more difficult or costly than expected. A significant and lengthy downturn in the value of bitcoin would pull down the value of its assets and reduce or slow its cash flow. Major changes in the price of property and electricity could affect the costs of its inputs, potentially reducing the earnings power of its mining, real estate, and power holdings. Conclusion The yo-yoing price of CleanSpark made the headlines and the warning banner would have caught investors’ attention. But the most significant issue is its transition from a miner into something like a real estate investment trust. This will lead to profound changes in CleanSpark’s capital structure and a new rationale for ownership. I maintain my Buy rating.
10 Feb 2026, 13:26
Bitdeer reports strong January 2026 mining
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10 Feb 2026, 12:58
Canaan reports January 2026 bitcoin mining update
More on Canaan Canaan Inc. (CAN) Q3 2025 Earnings Call Transcript Canaan Inc. 2025 Q3 - Results - Earnings Call Presentation Canaan beats top-line and bottom-line estimates; initiates Q1 outlook Canaan Q4 2025 Earnings Preview Seeking Alpha’s Quant Rating on Canaan
10 Feb 2026, 11:50
Miner Offloads $305M Bitcoin as Network Difficulty Sees Sharp Decline
Bitcoin mining conditions tightened sharply in late January and early February after network difficulty fell 14% over three weeks and publicly traded miner Cango disclosed a $305 million BTC sale over the weekend. The combination of falling profitability metrics and selective balance sheet sales shows pressure spreading across the mining sector, even as broader on-chain data shows no signs of disorderly selling. Difficulty Drops as Miners Cut Capacity According to a February 10 brief published by on-chain analyst Axel Adler Jr., Bitcoin’s network difficulty dropped by a combined 14.1% between January 22 and February 6, following two consecutive downward adjustments of 3.3% and 11.2%. Such back-to-back cuts usually occur when less efficient mining equipment is taken offline, often during periods of weak price action. During the same window, the price of BTC fell about 25%, briefly touching $60,000 before rebounding toward $70,000. At the time of writing, the flagship cryptocurrency was trading at around $69,000, down nearly 1% in the last 24 hours and more than 12% over the past week, based on CoinGecko data. The asset has also lost 24% of its value over the past month and about 29% year over year, underperforming earlier-cycle expectations and keeping mining margins tight. Against this backdrop, Cango confirmed it sold 4,451 BTC for approximately $305 million, citing balance sheet strengthening. The sale, approved by the company’s board, drew an immediate reaction from equity investors, with Cango shares closing 8% lower on the first trading day after the disclosure. Adler described the transaction as a point event rather than evidence of widespread forced liquidation, noting that aggregate miner flows to exchanges are still holding steady. Data from miner exchange inflows supports that view, with the 30-day moving average of daily miner transfers hovering near 82 BTC, only slightly lower than mid-January levels and well within recent norms, according to the market watcher. Furthermore, he reported that there have been no sustained spikes that would suggest broad reserve dumping. Profitability Pressure and What Comes Next Profitability metrics still point to strain. For instance, Adler pointed out in his brief that the Puell Multiple, which compares daily miner revenue to its annual average, slipped to a 30-day average of 0.77 in early February, down from 0.86 in mid-January. He added that spot readings briefly fell to around 0.61, levels historically associated with miner stress and capacity exits. The analyst noted that miners earning below their annual average tend to prioritize liquidity, increasing the chance of selective reserve sales rather than aggressive expansion. According to him, completion of this stress phase typically requires a reversal in difficulty adjustments and a recovery in the Puell Multiple toward the 0.85 to 0.90 range. For now, the data suggests the adjustment is playing out mainly through hashrate reductions instead of heavy selling. The risk, in Adler’s opinion, is a renewed price drop below $60,000, which could push profitability metrics lower and prompt similar sales from other public miners. The post Miner Offloads $305M Bitcoin as Network Difficulty Sees Sharp Decline appeared first on CryptoPotato .
10 Feb 2026, 11:44
Satoshi Nakamoto Bitcoin Wallet Address List Revealed
Bitcoin trades at $68,897 as of writing, keeping market attention firmly on long-term holders and historic addresses. Against this backdrop, renewed interest has emerged around Satoshi Nakamoto’s Bitcoin wallet addresses after a mysterious transfer sent 2.56 BTC, worth over $180,000, to the Bitcoin genesis address. The event has revived discussion around the scale, structure, and long-standing dormancy of wallets widely linked to Bitcoin’s anonymous creator. Mapping Satoshi Nakamoto’s Wallet Addresses Blockchain researchers estimate that Satoshi Nakamoto controls more than 20,000 Bitcoin wallet addresses. Most of these wallets received exactly 50 BTC, which matched the block reward during Bitcoin’s earliest mining era. Some of these addresses, especially the genesis address, hold more than the 50 BTC mining reward, as some Bitcoin users occasionally send small amounts of BTC to addresses belonging to Satoshi as a tribute. Address Balance Notes 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa 103.03 BTC Genesis address 12cbQLTFMXRnSzktFkuoG3eHoMeFtpTu3S 18.44 BTC The address used by Satoshi to send the first user-to-user Bitcoin transaction to Hal Finney 12c6DSiU4Rq3P4ZxziKxzrL5LmMBrzjrJX 51.35 BTC n/a 1HLoD9E4SDFFPDiYfNYnkBLQ85Y51J3Zb1 50.08 BTC n/a 1FvzCLoTPGANNjWoUo6jUGuAG3wg1w4YjR 50.01 BTC n/a Analysts believe Satoshi mined blocks consistently in the network’s first year, accumulating holdings estimated between 600,000 BTC and 1.1 million BTC. Despite the enormous value tied to these addresses, none have shown any outgoing activity since their creation. The Patoshi Pattern Explained Much of the research around Satoshi’s wallets stems from work by Sergio Damian Lerner. Lerner identified a distinct mining signature known as the “Patoshi” pattern. This pattern revealed timing and technical traits that separated blocks likely mined by Satoshi from those mined by others. Using this approach, Lerner concluded that Satoshi mined approximately 1.1 million BTC. The estimate carries a high degree of confidence within the blockchain research community, though absolute certainty remains impossible. A Transfer To The Genesis Address On February 7, an unknown Bitcoin user sent 2.56 BTC to the Bitcoin genesis address. This address mined the first Bitcoin block in January 2009 and received the network’s original 50 BTC reward. The transaction quickly appeared across blockchain explorers and spread across crypto-focused platforms. The address showed no outgoing movement after the deposit, reinforcing its long-standing inactivity. Observers confirmed that the transfer did not involve any action from Satoshi Nakamoto. Why Genesis BTC Never Moves The genesis address holds unique technical properties. While it displays a balance, the original 50 BTC block reward cannot be spent. Charles Hoskinson previously explained that Satoshi did not add the genesis block’s coinbase transaction to Bitcoin’s global transaction database. As a result, those coins remain permanently unspendable. Whether this outcome occurred by design or accident remains unclear. Any BTC sent to this address effectively leaves circulation. Symbolism Behind These Transfers Transfers to the genesis address have occurred multiple times over the years. Many in the crypto community view them as symbolic gestures or tributes to Bitcoin’s origins. Others interpret them as intentional burns that slightly reduce Bitcoin’s circulating supply. In 2024, another anonymous user sent a large BTC sum to the same address, sparking similar debates. Despite the attention, these deposits carry no material market impact due to their small scale relative to total supply. Dormant Coins And Market Speculation Although the genesis BTC remains unspendable, most Bitcoin associated with Satoshi’s other wallets remains technically accessible. None of those coins have moved since the early mining period. This prolonged silence has fueled speculation ranging from lost private keys to deliberate inactivity. Some observers even question whether Satoshi remains alive. However, no on-chain evidence supports any conclusion. For now, the latest transfer adds another chapter to Bitcoin’s history. The market continues to watch one event above all else. If any Satoshi-linked wallet ever sends BTC outward, the implications would ripple across the entire crypto ecosystem. Until then, the mystery remains intact.
10 Feb 2026, 11:31
XRP Liquidity Pools Signal Potential Short Squeeze. Here’s the Significance
XRP is showing concentrated liquidity above its current price, indicating conditions that could trigger a short squeeze. In a recent post, crypto analyst ChartNerd (@ChartNerdTA) noted two key liquidity pools at $1.80 and $2.10. He stated, “Whenever $1.80/$2.10 is cleared, the skies will open up.” The chart shows XRP encountering dense liquidation clusters above its current level. These clusters indicate areas where traders have placed leveraged positions that could trigger forced liquidations if the price moves upward. The first pool sits around $1.80, with a second, larger pool near $2.10. Both represent significant potential for upward price acceleration once these levels are breached. $XRP : Look at all that liquidity. Short-squeeze brewing. Two $XRP liquidity pools sits above waiting to be hunted. Whenever $1.80/$2.10 is cleared, the skies will open up. pic.twitter.com/pMf9WNaYSY — ChartNerd (@ChartNerdTA) February 8, 2026 Short Squeeze Potential The presence of concentrated liquidity makes XRP susceptible to a short squeeze . When prices rise and hit these clusters, traders with short positions may be forced to cover, buying XRP to exit their trades. This activity can drive the price higher rapidly. ChartNerd’s note on the potential for a short squeeze highlights this mechanism, emphasizing that clearing the $1.80 and $2.10 levels could trigger a cascade of buying. From January 8 to February 7, XRP experienced a series of lower highs and lower lows, followed by a recent decline and consolidation around $1.40. The chart reveals multiple areas where liquidity is concentrated, suggesting that upward movement will encounter resistance but also significant buying pressure once these zones are passed. Key Resistance Levels The highlighted zones at $1.80 and $2.10 are critical for short-term momentum. Breaking above $1.80 would likely absorb the first wave of short positions. Surpassing $2.10 would engage a larger pool, potentially accelerating price movement. These levels act as checkpoints for traders, marking potential breakout points that could quickly shift market dynamics. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Although the chart focuses primarily on liquidity and leverage, the underlying price movement indicates the market is primed for volatility . The concentration of orders at the specified levels shows that significant capital is waiting to engage if XRP surpasses these thresholds. The combination of technical resistance and potential forced buy orders creates conditions favorable for an upward shift. What to Expect from XRP XRP’s current consolidation near $1.40 places it below the critical liquidity pools, suggesting that a measured climb could initiate a short squeeze. Traders and investors are likely monitoring these levels closely, as surpassing $1.80 and $2.10 could trigger accelerated momentum. ChartNerd’s analysis points directly to these zones as potential catalysts for rapid upward market movement . Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post XRP Liquidity Pools Signal Potential Short Squeeze. Here’s the Significance appeared first on Times Tabloid .
