Shares of CleanSpark Inc, traded on NASDAQ under the ticker CLSK, saw a significant decrease on Thursday amid growing investor uncertainty ahead of the company's first-quarter fiscal 2026 earnings announcement, scheduled to be released after the market's close.
According to analyst consensus, CleanSpark is forecasted to post earnings per share (EPS) of $0.09 for the reported quarter. This expectation arrives amidst a broader environment characterized by elevated volatility within the cryptocurrency sector, which has had a dampening effect on stocks engaged in Bitcoin mining.
The cryptocurrency market itself is experiencing a turbulent phase. Bitcoin's value has declined to $67,015.29, reflecting a 7.49% drop within the previous 24 hours and a substantial 20.93% reduction over the past week. Correspondingly, the Crypto Market Fear and Greed Index registered a level of 11, signaling an "Extreme Fear" condition among participants. This reading indicates a pronounced deterioration in market sentiment from a reading of 14 the prior day and 38 from a week ago, according to CoinMarketCap data.
Examining technical indicators for CleanSpark reveals troubling signs for short-term prospects. The shares are trading approximately 25.9% below their 20-day simple moving average (SMA) and about 34.9% under the 100-day SMA, indicative of marked weakness in recent price trends. Over the last 12 months, CleanSpark's shares have declined by approximately 10.81%, positioning the stock closer to its 52-week lows rather than its highs, underscoring persistent market challenges for the company.
Additional technical analysis highlights a Relative Strength Index (RSI) currently at 38.28, which falls within a neutral zone rather than indicating oversold conditions. However, the Moving Average Convergence Divergence (MACD) reading is below its signal line, denoting bearish momentum and selling pressure. Together, these metrics suggest a mixed yet cautious outlook among traders, with downward momentum continuing without reaching an excessively oversold state.
Key price levels to watch include resistance at $10.00 and support at $9.00, which may act as critical thresholds for future trading action.
From an analyst perspective, the stock carries an aggregate Buy rating, with an average price target of $23.16. Recent analyst reports include:
- Keefe, Bruyette & Woods maintaining an Outperform rating but lowering the target price to $18.00 as of January 27.
- Maxim Group initiating coverage with a Buy rating and a price target of $22.00 on January 8.
- Chardan Capital maintaining a Buy rating with an unchanged higher target of $30.00 from January 7.
Assessments from the Benzinga Edge scorecard provide further perspective on CleanSpark's market standing. The company's Value score is robust at 77.62, reflecting a perception of undervaluation relative to industry peers. However, the Momentum score is weak at 21.51, indicating that the stock is underperforming the broader market trend.
At the time of writing on Thursday, CleanSpark was trading down 10.71% to $9.68, according to Benzinga Pro data.
Given the confluence of these factors—dropping cryptocurrency prices, significant market fear, and technical indicators showing bearish pressures—CleanSpark faces notable near-term headwinds as it enters the earnings reporting period.