With most of its revenue coming from crypto mining, the company’s shifting its focus.
Real Money’s Timothy Collins recently decided to look at the cryptocurrency operation CleanSpark (CLSK) .
“There’s probably nothing more speculative than cryptocurrency and Bitcoin mining,” Collins wrote recently on Real Money. “CleanSpark, like many of its Bitcoin mining counterparts, isn’t without a short seller candidate target on its back.”
In fact, Collins is “pretty sure every one of these companies will see its name in a report at some point between 2020 and 2022.”
CleanSpark has been straddling the line between an energy business and a crypto miner. Heading into 2022 “it is becoming clearer and clearer that the focus is on mining now that 80% of its revenue is now from crypto mining,” Collins wrote.
He even suggested that the company could sell off its energy business and use the proceeds to fund more hardware for crypto mining.
“CleanSpark is a tricky company,’ he added. “The energy side of their business offers what are known as ‘microgrids,’ essentially all of the hardware and software you need to power a building on its own. In the case of CleanSpark this usually means installing solar panels on homes and office buildings.”
However, “most of CleanSpark’s revenue comes from its cryptocurrency mining. Crypto mining is a notoriously energy-intensive operation that causes a spike in all forms of pollution associated with the electric grid. While the company advertises itself as a clean energy crypto company, “clean crypto” has almost as little reality as clean coal.”
