CleanSparkCLSK

Business Snapshot

• CleanSpark, Inc. is a U.S.-listed common stock (NASDAQ: CLSK). The payload does not provide a sector classification or business description, so this briefing does not assume one.
• The supplied financial statements show substantial recent losses and negative operating cash flow. Reported revenue for the three latest periods is missing, limiting assessment of the underlying operating trajectory.

Financial Trends

• Revenue: Revenue is reported as $766.3 million for the year ended 2025-09-30, but is missing for the three subsequent periods. The annual figure is not directly comparable with the quarterly-period entries; revenue growth or contraction cannot be established from this payload.
• Profitability: Operating income was negative in the three latest reported periods: -$316.6 million (2025-12-31), -$345.7 million (2026-03-31), and -$232.4 million (2026-06-30). It worsened by $29.1 million from December to March, then improved by $113.3 million in June versus March, though remained negative. Net losses were -$378.7 million, -$378.3 million, and -$239.8 million over the same periods: nearly flat from December to March, then improved by $138.5 million in June versus March.
• Cost of revenue declined from $95.6 million in December to $81.7 million in March, then rose to $85.5 million in June. Operating expenses fell from $497.7 million to $482.1 million and then to $370.4 million across those periods. Gross and operating margins are not supplied for these periods, and missing revenue prevents calculating them reliably.
• Cash flow: Cash from operations deteriorated from -$161.1 million in December to -$297.0 million in March and -$409.3 million in June. That is a $248.2 million larger quarterly cash outflow in June than December. Cash from investing was positive in all three periods, at $79.6 million, $49.0 million, and $104.5 million, while cash from financing remained substantial at $496.4 million, $465.0 million, and $464.7 million. Free cash flow is not reported, so its level and trend cannot be confirmed.
• Balance sheet: Cash fell from $458.1 million at 2025-12-31 to $260.3 million at 2026-03-31 and $202.6 million at 2026-06-30—a $255.5 million, or 55.8%, decline from December to June. Total assets decreased by $624.0 million from 2025-09-30 to 2026-06-30, while liabilities increased by $932.4 million and equity declined by $1.414 billion. Retained earnings worsened from -$125.9 million to -$1.153 billion over that span.
• The quarterly entries are labeled as 10-Q, but the payload does not establish whether the income and cash-flow values are standalone quarters or year-to-date amounts. Interpret sequential comparisons cautiously.

Financial Health

• The June 2026 balance sheet shows $202.6 million of cash and $920.8 million of current assets against $155.8 million of current liabilities; the stated current ratio is 5.91. That ratio remains above 1, but has fallen from 10.54 in December and 8.26 in March, with working capital down from $1.331 billion to $765.1 million over the same period.
• The near-term concern is the combination of growing operating cash outflows and declining cash: operating cash flow was -$409.3 million in June, versus -$161.1 million in December, while cash declined by $255.5 million. Financing inflows of $464.7 million in June supported liquidity.
• Liabilities rose sharply from $1.009 billion at 2025-09-30 to $1.941 billion at 2025-12-31, and remained near that level through June. Equity contracted over the same span. Debt/equity is not provided, so the change in liabilities should not be characterized as debt growth specifically.
• Overall, the latest snapshot retains a positive current-asset cushion, but the cash, working-capital, and equity trajectories point to weakening balance-sheet flexibility. Missing revenue, margin, and free-cash-flow data make it difficult to determine how much of the reported losses and cash burn reflect recurring operations.

Insider Activity

• The supplied sentiment summary for 2026-07-14 to 2026-10-12 is Neutral (-10), with reported sales of $3.13 million, no-dollar-value buys across 15 transactions, and a net reported balance of -$3.13 million. The transaction count includes entries recorded at $0 and should not be read as equivalent to cash purchases or sales.
• The listed October 1 Form 4 entries include sales at $12.3303 by Taylor Monnig ($161,811 and $41,122) and Scott Eugene Garrison ($183,154), plus several entries shown at $0. The zero-value “buy” and “sell” entries are not evidence of open-market purchases or sales at a stated price.
• Overall, the dollar-valued activity shown is more weighted toward sales than purchases. Insider transactions alone do not establish the reason for the sales or predict future performance.

Multi-Timeframe Technical Context

• Only daily data is supplied; there is no intraday timeframe to assess price action over minutes or hours. The current price is $10.3671, down 9.30% across the reported 200-bar span from the opening value of $11.43.
• Daily momentum is weak: MACD is -0.5924 versus a -0.2080 signal, and price is below the 12-, 26-, and 50-day EMAs (11.89, 12.49, and 12.83), as well as the 20-, 50-, and 200-day SMAs (12.92, 12.65, and 12.56).
• RSI-14 is exceptionally low at 4.22, while RSI-21 is 31.2. This indicates a strongly oversold reading on the shorter RSI measure, but oversold conditions do not by themselves confirm a reversal.
• Price is near the lower Bollinger Band at $10.13; the middle band is $12.92 and upper band $15.71. ATR is $0.75, indicating sizeable daily price movement relative to the current price.
• Current volume of approximately 3.17 million is below the 20-day average of 16.28 million. The supplied session range is wide, from $8.00 to $19.17; no intraday sequence is provided to show how that range formed.

Bull / Bear Cases

• Short-term bull case: The deeply depressed RSI-14 and price near the lower Bollinger Band could accompany a relief bounce. A move back above the $10.13 band area and then toward the $11.89–$12.49 EMA zone would offer observable recovery tests.
• Short-term bear case: Price remains below all listed moving averages, MACD is negative and below its signal, and operating cash outflow has worsened across the three latest periods. Failure to hold the lower-band area could leave the reported $8.00 session low as a downside reference.
• Long-term bull case: Operating and net losses narrowed in the June period versus March, and the current ratio remains above 1. A sustained improvement in profitability and operating cash flow, alongside stabilized cash and working capital, would strengthen the fundamental case; the provided data do not yet demonstrate that stabilization.
• Long-term bear case: Cash and working capital have fallen materially from December, operating cash outflows have deepened, and equity has contracted sharply since September. Missing revenue and margin data prevent confirmation that the June loss improvement reflects a durable operating inflection.

Key Levels & Triggers

• Near-term support references: $10.13, the lower Bollinger Band, and $8.00, the supplied session low. These are reference points from the provided data, not confirmed support zones.
• Potential recovery tests: $11.89 (EMA-12), $12.49 (EMA-26), $12.56–$12.83 (SMA-200, SMA-50, and EMA-50 area), and $12.92 (SMA-20/Bollinger middle band). Price remains below each.
• Volatility context: ATR is approximately $0.75; the wide $8.00–$19.17 session range underscores elevated price variability, though no intraday data is available to interpret it further.
• Fundamental triggers to monitor: Revenue and margin disclosure in future periods, whether operating losses continue to narrow, whether operating cash outflow moderates, and whether cash and working capital stabilize without relying on continued financing inflows.