CANADA – 2025/04/22: In this photo illustration, the CleanSpark logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
CleanSpark stock (NASDAQ: CLSK) has decreased by approximately 50% over the past month due to three main reasons: a substantial convertible note offering, fluctuations in Bitcoin prices, and an overall negative market sentiment. Separately, read about the turmoil in Bitcoin: Before Bitcoin Hits $50,000, Ask This One Question.
- Convertible Note Offering: In November 2025, CleanSpark revealed an enlarged $1.15 billion offering of zero-coupon convertible senior notes. The market reacted unfavorably due to worries about possible stock dilution, which immediately put downward pressure on the stock price. This adverse reaction continued even though the company allocated a portion of the proceeds for a stock buyback.
- Bitcoin Price Volatility: As a Bitcoin mining entity, CLSK’s results are closely linked to Bitcoin’s price. The recent decline and volatility of Bitcoin significantly increased selling pressure on CLSK, as a downturn in the cryptocurrency’s price severely affects the profitability and investor confidence in miners.
- Market-Wide Sentiment: Broader market weaknesses, especially in the AI and crypto industries, intensified the negative sentiment surrounding CLSK stock.
Sharp declines often prompt a more complex question: is the weakness a short-term issue, or a symptom of deeper flaws in the situation? Before we examine this, if you’re looking for an investment with less volatility compared to holding an individual stock like CLSK, consider the High Quality Portfolio. It has consistently outperformed its benchmark—a mix of the S&P 500, Russell 2000, and S&P MidCap indexes—and has recorded returns exceeding 105% since its inception. What accounts for this? As a group, HQ Portfolio stocks generated better returns with lower risk compared to the benchmark index; they provide a smoother investment experience, as shown in the HQ Portfolio performance metrics. Separately, see – Before Bitcoin Hits $50,000, Ask This One Question
Before evaluating its downturn resilience, let’s assess CleanSpark’s current position.
These metrics indicate a strong operational performance, coupled with a low valuation, making the stock attractive. For more information, see Buy or Sell CLSK Stock.
This leads us to a critical issue for investors concerned about this drop: how resilient is CLSK stock if the markets decline? This is where our downturn resilience framework becomes relevant. If CLSK stock drops another 20-30% to $7, can investors hold on comfortably? It appears that the stock has performed worse than the S&P 500 index during multiple economic downturns, based on (a) the extent of the stock’s decline and (b) the speed at which it recovered. Below, we provide a detailed analysis of each downturn.
2022 Inflation Shock
- CLSK stock plummeted 95.6% from a high of $40.39 on 7 January 2021 to $1.78 on 19 December 2022, compared to a peak-to-trough drop of 25.4% for the S&P 500.
- The stock has yet to regain its pre-Crisis peak.
- Since then, the highest the stock reached was $23.40 on 25 March 2024, and it currently trades at $9.73.
CLSK Stock Performance During The 2022 Inflation Shock
Trefis
MORE FOR YOU
2020 Covid Pandemic
- CLSK stock decreased by 80.0% from a peak of $5.25 on 23 January 2020 to $1.05 on 2 April 2020, while the S&P 500 experienced a peak-to-trough decline of 33.9%.
- Nevertheless, the stock fully rebounded to its pre-Crisis high by 22 July 2020.
CLSK Stock Performance During The 2020 COVID-19 Pandemic
Trefis
2018 Correction
- CLSK stock declined 85.9% from a peak of $2.98 on 7 May 2019 to $0.42 on 31 October 2019, contrasting with a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock completely recovered to its pre-Crisis peak by 7 January 2020.
CLSK Stock Performance During The 2018 Correction
Trefis
If you are feeling uneasy about CLSK stock, consider adopting a portfolio approach.
Individual stocks can be volatile, but a diversified asset mix can balance the risks. A multi-asset portfolio allows you to stay committed, capture potential gains, and mitigate losses. The asset allocation strategy of Trefis’ Boston-based wealth management partner generated positive returns during the challenging period of 2008-09 when the S&P declined by over 40%. Our partner’s current strategy incorporates Trefis’s High Quality Portfolio, which has a proven record of outperforming its benchmark, which includes the S&P 500, S&P MidCap, and Russell 2000 indices.