Invest ideasNews
10 Feb 2026, 21:07
John Karony from the SafeMoon debacle has finally been sentenced to 100 months in federal prison
Braden John Karony, famously known in crypto circles as John Karony, the former CEO of SafeMoon, has just been sentenced to 100 months behind bars. That amounts to about 8 years and 4 months in a federal prison, a major legal conclusion for one of the key figures linked to the SafeMoon incident. Closer to theft than fraud Karony was convicted of his crimes in May 2025 following a jury trial that took place in the US District Court for the Eastern District of New York. The court found him guilty on three counts, including conspiracy to commit securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. According to court proceedings from today, February 10, 2026, Karony’s total offense level was 37, and he was put in criminal history category 1 with a guideline of 210 to 262 months. The proceedings today involved victims sharing their experiences with SafeMoon and specifically Karony, whom several of them claimed had been the one to convince them the project was trustworthy and would not rugpull. “We believed in Mr. Karony, what he said – it gave us a sense of false security. Our investment changed the trajectory of our life. We have not been able to buy a house. To this day, we have not been able,” one victim claimed. Karony’s defense defended his position by claiming that it all went down when Karony was just 25, and his brain was just developing. His defense tried to attract sympathy by diving into his family history, but that did little to help. He had already been convicted. After the court went on recess and resumed session, the Judge in charge, United States District Judge Eric R. Komitee of the Eastern District of New York, called what happened with SafeMoon a “massive fraud.” “I’d describe it this way: the defendant and co-conspirators went to great pains to earn the trust of people who bought it, assuring there would not be a rug-pull. That happened,” Komittee said. The judge also pointed out that the incident was more similar to “theft than fraud,” especially since it was not a small loss per person, as is the case in many securities frauds. “I sentence you to 100 months in the custody of the AG. On count 1, 60; count 2, 100 concurrently,” Komittee concluded . The hearing for the third count of money laundering will reportedly take place on April 23 at 10 in the morning. What happened to the SafeMoon project? According to SEC documents , Karony and his co-conspirators misrepresented various material aspects of the SafeMoon offering to investors. They lied that SafeMoon relied on “locked” liquidity pools that would automatically increase in size due to a 10% tax imposed on every SafeMoon transaction; that the “locked” SafeMoon liquidity pool meant the defendants and other insiders at SafeMoon would not be able to “rug pull” SafeMoon investors by removing liquidity from the SafeMoon liquidity pool. They also claimed that tokens in the liquidity pool would only be used for limited pre-defined business purposes, not personal enrichment; that the defendants would manually add token pairs to the SafeMoon liquidity pool when transactions of SafeMoon occurred on specific centralized exchanges; and that the developers were not and had not been holding and trading SafeMoon for their benefit. In truth, Karony and his co-conspirators had access to the SafeMoon liquidity pools, which they used to intentionally divert and misappropriate millions of dollars’ worth of tokens for their personal benefit. Also, although they publicly denied that they personally held or traded SafeMoon, they repeatedly bought and sold SafeMoon, sometimes at the height of SafeMoon’s market price, earning themselves millions of dollars in profits. They masked their movement of the fraudulent proceeds via numerous private un-hosted crypto wallet addresses, complex transaction routing, and pseudonymous centralized exchange accounts. Other company executives are in trouble too Karony reportedly walked away from the scheme with over $9 million in crypto assets, some of which he used to purchase luxury vehicles and real estate, including a $2.2 million home in Utah, additional homes in Utah and Kansas, a $277,000 Audi R8 sports car, another Audi R8, a Tesla, and custom Ford F-550 and Jeep Gladiator pickup trucks. His co-conspirator, Thomas Smith, previously pleaded guilty and is awaiting sentencing, while his other co-conspirator, Kyle Nagy, remains at large. “As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars,” stated United States Attorney Nocella. The maximum possible sentence for his crimes could have been up to 45 years. Prosecutors had reportedly recommended 12, while the defense pushed for about a year. The decision to settle on the 100-month term has taken into account federal sentencing guidelines, forfeiture orders, and some other factors like restitution considerations. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
10 Feb 2026, 20:00
Canaan Inc. reports a significant surge in revenue and operational performance
Crypto mining company Canaan Inc. announced in its Q4 2025 financial statements that its total revenue for 2025 surged to $196.3 million. The company’s total computing power set a new quarterly record after reaching 14.6 exahashes per second (EH/s). Canaan Inc. reported unaudited financial results for the fourth quarter and full year ended December 31, 2025. The financial records revealed that the firm recorded a total revenue of US$196.3 million YoY, exceeding the median of the Company’s previous guidance range. The revenue represented a 121.1% YoY increase and a 30.4% QoQ growth. Canaan sells record computing power exceeding 14.6 EH/s In a press release distributed on Tuesday. The company announced it had sold a total of 14.6 exahashes per second (EH/s), setting a new quarterly record. The computing power sold represented 60.9% year-over-year growth and 45% quarter-over-quarter growth. The press release highlighted that large-scale orders from North America drove the sudden surge in computing power sales. Canaan’s mining revenue also went up to $30.4 million. The company mined 300 Bitcoins at an average revenue of $101,304 per BTC, despite the network hash rate pulling back. The company’s gross profit was $14.6 million, compared with a gross loss of $6.4 million in the same period last year. The company’s crypto treasury also expanded 1,749.9 BTC and 3,950.54 ETH by the end of the fourth quarter of 2025. According to data from Bitcoin treasuries, the company’s holdings are worth $121.86 million as of this publication. Data from Coingecko shows that its ETH holdings are worth $8 million at ETH’s current discounted prices. The crypto holdings position the company among the leading corporate Bitcoin holders, ranking 38 on Bitcoin Treasuries’ list of top public companies holding Bitcoin and 17 on CoinGecko’s list of top Ethereum Treasury companies. Canaan’s total revenue for the entire 2025 grew by 96.7% from $269.3 million in 2024 to $529.7 million. The total computing power sold also increased by 40.7% Year over Year, surpassing 36.5 EH/s, as the company deepened its global client partnerships. The Nasdaq-listed Bitcoin mining firm also saw Bitcoin mining revenue increase from $44.0 million in 2024 to $113.2 million, a year-over-year increase of 157.2%. The firm’s Gross profit was $41.2 million compared to a gross loss of US$84.3 million in 2024. Despite strong financial results last year, Canaan’s stock is down 0.28% over the last 1 day, according to Google Finance. The stock has surged by 1.68% over the past 7 days. However, the stock is down 26.22% in the last month and has declined by more than 12% since the year began. The stock’s performance may reflect the broader crypto market’s overall performance during the ongoing crypto winter. Bitcoin is down 7.9% over the last seven days, according to CoinMarketCap, and has traded below $70 since February 5. Canaan faces Nasdaq delisting risk as minimum bid price drops below $1 The miner’s financials come at a crucial time for the company. About three weeks ago, Cryptopolitan reported that Canaan had entered the Nasdaq delisting window. The report noted that the company confirmed it had received a notification letter from Nasdaq on January 14 regarding non-compliance with the exchange’s minimum bid price requirement of $1. The report highlighted that the letter did not have any immediate effect on the listing or trading of the company’s securities on the exchange. Canaan began developing cryptomines towards the end of 2025. On December 5, the mining firm announced a strategic partnership with SynVista Energy to significantly reduce the environmental impact and cost of Bitcoin mining through a “renewable-adaptive” ecosystem. The partnership aims to reduce the massive amount of electricity consumption associated with Bitcoin mining. According to Bitcoin, mining consumes about 0.8% of the world’s global electricity consumption. Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
10 Feb 2026, 18:03
MemeCore Profits Pale in Comparison: Bitcoin Everlight App Delivers Guaranteed High-Yield Bitcoin Rewards
Speculative Layer-1 ecosystems built around narrative momentum have struggled to provide stable participation economics during the 2026 market drawdown. Operator incentives tied directly to native tokens have amplified downside exposure as price compression continues across multiple sectors. This environment has accelerated interest in participation models that separate operational rewards from token price performance, particularly those anchored to measurable network activity and external settlement assets. MemeCore’s Incentive Model Meets Harsh Reality MemeCore was designed as an EVM-compatible Layer-1 focused on a “Meme 2.0” economy, using its Proof of Meme consensus system to reward cultural relevance and on-chain viral engagement. Participation outcomes are therefore influenced by social momentum in addition to validator activity. As of February 2026, MemeCore’s native token trades near $1.41 after rebounding from a brief flash-crash range between $1.12 and $1.20 earlier in the month. Despite the recovery, the asset remains roughly 52% below its $2.96 cycle high. Network participation economics remain closely tied to token valuation, leaving operators exposed to continued volatility while broader market direction remains uncertain. Everlight’s Role Alongside Bitcoin Bitcoin Everlight functions as a Bitcoin-adjacent transaction coordination layer that operates without altering Bitcoin’s protocol, monetary policy, or consensus rules. The system is designed to handle execution-layer activity such as transaction routing and coordination, while Bitcoin retains final settlement authority. Transaction confirmations are achieved through quorum-based validation across Everlight nodes, typically completed in seconds. For additional settlement assurance, activity can be periodically anchored back to Bitcoin, creating a linkage between execution speed and base-layer finality without introducing protocol changes. How Everlight Nodes Generate BTCL Rewards Everlight nodes perform operational tasks including transaction routing, uptime maintenance, and performance verification. These nodes are not Bitcoin full nodes and do not validate Bitcoin blocks. Their function is limited to execution-layer coordination within the Everlight network. Node operators commit BTCL to participate and earn Bitcoin derived from real network usage. BTC distribution is calculated using routing throughput, uptime coefficients, performance metrics, and node tier classification. Everlight supports Light, Core, and Prime node tiers, each carrying increasing routing responsibility and proportional access to BTC-denominated network rewards. No lock period is enforced. Participation is flexible, with Bitcoin earned only while nodes remain active and performant. Nodes that fail to meet performance thresholds lose routing priority and associated BTC allocation until operational standards are restored. Participation Model Comparison Dimension MemeCore Bitcoin Everlight Reward Asset Native token Bitcoin (BTC) Reward Basis Cultural & viral signals Transaction routing activity Exposure to Token Price High Limited Mandatory Lockup Protocol-defined None Node Function Scope Consensus & signaling Execution & routing Bitcoin Layer Impact None No protocol changes Running Nodes Through a Mobile Interface Everlight node participation is managed through a dedicated mobile application, allowing operators to monitor and adjust activity from a smartphone. The app provides live reporting on node status, uptime consistency, routing activity, and Bitcoin earned from network operations. Performance alerts notify operators of uptime disruptions, routing changes, and BTC distribution events. This design reduces infrastructure complexity and enables participation without constant server oversight, expanding access beyond traditional node operators. Independent third-party analysis of Everlight’s node structure and reward mechanics is available through Crypto Dex World . Audits and Team Identity Checks Are In Place Bitcoin Everlight has completed multiple independent security evaluations intended to assess smart contract logic, deployment integrity, and potential attack surfaces. Reviews conducted through the SpyWolf Audit and SolidProof Audit focus on verifying contract behavior under real-world conditions and identifying implementation risks prior to broader network usage. Beyond code review, Everlight has also completed independent team identity verification via SpyWolf Team Identity Verification and Vital Block Team Validation . These processes establish accountability by confirming the identities responsible for network development and operations, reducing counterparty opacity for participants. BTCL Presale Structure and Market Positioning Bitcoin Everlight has a fixed supply of 21,000,000,000 BTCL. Allocation is defined as 45% public presale, 20% node rewards and network incentives, 15% liquidity provisioning, 10% team allocation under vesting, and 10% reserved for ecosystem development and treasury use. The presale follows a 20-stage structure. Phase 3 is currently active with BTCL priced at $0.0012. Presale allocations unlock 20% at token generation, with the remaining 80% released linearly over six to nine months. Team allocations follow a 12-month cliff with extended vesting thereafter. BTCL utility is limited to transaction routing fees, node participation thresholds, performance incentives, and anchoring operations. In a market where token-denominated participation remains vulnerable to drawdowns, Everlight’s Bitcoin-based reward model positions network activity as a defensive alternative. If market conditions improve, increased transaction demand expands routing activity. If volatility persists, operators continue earning Bitcoin from ongoing network usage. Run Everlight nodes through the mobile app and earn Bitcoin from real network activity. Website: https://bitcoineverlight.com/ Security: https://bitcoineverlight.com/security How to Buy: https://bitcoineverlight.com/articles/how-to-buy-bitcoin-everlight-btcl
10 Feb 2026, 16:15
Canaan Q4 Revenue Skyrockets: Mining Giant’s $196M Quarter Signals Strategic Resurgence
BitcoinWorld Canaan Q4 Revenue Skyrockets: Mining Giant’s $196M Quarter Signals Strategic Resurgence In a powerful demonstration of resilience and strategic adaptation, Bitcoin mining hardware manufacturer Canaan has reported a staggering financial performance for the final quarter of last year. The company’s Q4 revenue more than doubled, reaching $196 million and signaling a potential turning point for the broader mining hardware sector. This remarkable 121% year-over-year surge, confirmed by financial data from The Block, represents Canaan’s most substantial quarterly revenue in three years, directly challenging prevailing narratives about industry headwinds. Canaan Q4 Revenue Analysis: Breaking Down the $196 Million Surge Canaan’s financial resurgence stems from a dual-engine strategy. Firstly, the company’s core business of designing and selling application-specific integrated circuit (ASIC) miners, like its Avalon series, experienced renewed demand. This demand correlates strongly with the recovery in Bitcoin’s network hash rate and price stability throughout the latter half of the year, which incentivized miners to upgrade their equipment for greater efficiency. Secondly, and perhaps more significantly, Canaan has aggressively expanded its proprietary mining operations. These operations produced 300 Bitcoin (BTC) in Q4 alone, generating $30.4 million in direct revenue from block rewards. Consequently, this vertical integration provides a natural hedge against the cyclicality of hardware sales. Key drivers behind the revenue jump include: Improved Market Conditions: Higher Bitcoin prices and reduced energy costs in key regions improved mining profitability. Product Cycle: The launch of more energy-efficient mining rigs attracted upgrades from large-scale mining farms. Operational Scale: Strategic expansion of company-owned mining data centers increased asset-based revenue. The Strategic Pivot Beyond Hardware Beyond the impressive headline numbers, Canaan’s report reveals a fundamental strategic evolution. The company explicitly stated its intention to focus more on computing and energy infrastructure, a clear expansion beyond its traditional identity as a pure-play hardware manufacturer. This pivot mirrors a broader trend within the cryptocurrency mining industry towards diversification and sustainability. By the end of December, Canaan’s treasury held 1,750 BTC and 3,951 Ethereum (ETH), showcasing a deliberate accumulation of digital assets as part of its balance sheet strategy. Furthermore, this move into computing infrastructure suggests ambitions in adjacent high-performance computing (HPC) fields, such as artificial intelligence training or cloud rendering, which utilize similar hardware architectures. Expert Insight: Decoding the Infrastructure Shift Industry analysts view Canaan’s infrastructure focus as a necessary adaptation. “The mining hardware market is intensely competitive and subject to brutal boom-bust cycles tied to Bitcoin’s price,” explains a veteran fintech analyst. “By vertically integrating into mining operations and building out energy-efficient computing hubs, Canaan is building more predictable, recurring revenue streams. Their substantial BTC and ETH holdings also act as a strategic reserve, providing liquidity and collateral options independent of quarterly hardware sales cycles.” This shift indicates a maturation of the business model, aiming to reduce volatility and leverage the company’s core competency in efficient computing for broader applications. Comparative Performance and Market Context Canaan’s performance stands out against recent industry challenges, including the 2022 market downturn and regulatory pressures in several jurisdictions. The company’s ability to more than double its revenue year-over-year suggests successful navigation of these obstacles. For context, the global Bitcoin network hash rate has continued its long-term upward trajectory, requiring constant hardware renewal. Canaan, as one of the few publicly-listed pure-play ASIC manufacturers, provides a critical bellwether for capital expenditure trends within the professional mining sector. Its recovery often precedes broader capital investment cycles in mining infrastructure. Canaan Q4 Financial & Operational Snapshot Metric Q4 Result Significance Total Revenue $196 Million Largest quarter in 3 years; 121% YoY growth BTC Mined (Company Ops) 300 BTC Generated $30.4M; demonstrates vertical integration Treasury Holdings (EoY) 1,750 BTC, 3,951 ETH Strategic digital asset reserve on balance sheet Primary Growth Driver Hardware Sales & Proprietary Mining Dual-revenue model reducing cyclical risk Stated Future Focus Computing & Energy Infrastructure Strategic pivot beyond core hardware manufacturing Conclusion Canaan’s Q4 revenue report delivers a compelling narrative of recovery and strategic foresight. The company’s more than doubled year-over-year revenue to $196 million is not merely a reflection of favorable market conditions but also the result of a deliberate expansion into mining operations and a stated future in broader computing infrastructure. This evolution positions Canaan to leverage its technical expertise across multiple high-growth computing sectors while maintaining its foundational role in the Bitcoin ecosystem. The substantial digital asset holdings further solidify its financial position. Ultimately, Canaan’s performance offers a significant data point indicating renewed strength and strategic diversification within the cryptocurrency infrastructure landscape. FAQs Q1: What was Canaan’s revenue for Q4 last year? Canaan announced revenue of $196 million for the fourth quarter, which is a 121% increase compared to the same quarter the previous year. Q2: How much Bitcoin did Canaan mine itself in Q4? The company’s own mining operations produced 300 Bitcoin during the quarter, generating $30.4 million in revenue from these activities. Q3: What digital assets does Canaan hold on its balance sheet? As of the end of December, Canaan’s treasury held 1,750 Bitcoin (BTC) and 3,951 Ethereum (ETH). Q4: What is Canaan’s new strategic focus according to the report? Canaan stated it plans to focus more on computing and energy infrastructure, expanding its business beyond just designing and selling Bitcoin mining hardware. Q5: Why is Canaan’s Q4 revenue significant? The $196 million figure represents the company’s largest quarterly revenue in three years, marking a potential turnaround and highlighting the success of its dual strategy in hardware sales and proprietary mining. This post Canaan Q4 Revenue Skyrockets: Mining Giant’s $196M Quarter Signals Strategic Resurgence first appeared on BitcoinWorld .
10 Feb 2026, 15:05
Ex-Ripple CTO: You Could Have Bought Lots of Bitcoin At Less Than $10. Here’s Why
Debates about fairness have followed cryptocurrency since its earliest days. Many latecomers believe transformative wealth was reserved for a small group of insiders, while the broader public arrived too late to benefit. This perception continues to shape how people interpret Bitcoin’s rise and the broader evolution of digital assets. Yet industry veterans increasingly argue that the story looks very different when viewed through the uncertainty that defined crypto’s formative years. David Schwartz, former Ripple CTO and a key architect of the XRP Ledger, recently challenged the popular narrative surrounding early access and unequal opportunity. Drawing on more than a decade of firsthand experience in the crypto sector, he reframed the discussion around risk tolerance, conviction, and the psychological barriers that prevented widespread participation when Bitcoin traded for only a few dollars. I think most of the fairness debate comes from two false premises: There is absolutely nothing unfair about the people who create value keeping as much of it as others will let them keep. The idea that it's unfair for people not to have the opportunity in a project that does not… — David 'JoelKatz' Schwartz (@JoelKatz) February 9, 2026 Risk, Not Privilege, Defined Early Adoption Schwartz’s core argument rests on historical context. During Bitcoin’s early years, the technology lacked regulatory clarity, institutional support, and reliable infrastructure. Most observers viewed the experiment as fragile or even destined to fail. Anyone purchasing large amounts of Bitcoin at extremely low prices accepts a genuine possibility of losing everything. From this perspective, extraordinary long-term gains reflected a willingness to embrace uncertainty rather than access to an unfair advantage. What appears obvious in hindsight felt highly improbable in real time. Early adopters did not simply arrive first; they assumed meaningful financial and reputational risk when few others would. The Power of Survivor Bias Schwartz also highlighted survivor bias as a major source of misunderstanding. Public memory tends to celebrate the small number of investors who succeeded while ignoring the many failed projects, abandoned tokens, and total losses that characterized crypto’s early landscape. This selective storytelling creates the illusion that wealth accumulation followed a predictable path instead of a deeply uncertain journey. By correcting this distortion, Schwartz encourages a more balanced interpretation of crypto history—one that recognizes both the risks taken and the failures endured alongside the successes now widely discussed. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 What This Means for Today’s Investors The broader implication extends beyond Bitcoin’s past. Schwartz’s reasoning suggests that similar opportunities may still emerge in new technologies, though they remain difficult to recognize while uncertainty persists. Many people claim they would have supported Bitcoin or Ethereum earlier under fairer conditions, yet they often hesitate when facing comparable ambiguity in present-day innovations. Innovation cycles consistently reward conviction before consensus forms. Waiting for complete certainty usually means entering after the most dramatic growth has already occurred. Turning Perspective Into Insight Schwartz ultimately redirects the conversation away from regret and toward awareness. Understanding why past opportunities felt too risky can help investors approach current uncertainty with clearer judgment. Rather than viewing crypto history as evidence of unfairness, this perspective reframes it as a lesson in courage, timing, and the enduring relationship between risk and reward. 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 urged to do in-depth 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 Twitter , Facebook , Telegram , and Google News The post Ex-Ripple CTO: You Could Have Bought Lots of Bitcoin At Less Than $10. Here’s Why appeared first on Times Tabloid .
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.
