Would You Still Hold Cleanspark Stock If It Fell Another 30%?
Cleanspark (CLSK) stock is down 41.5% in 21 trading days. The recent slide reflects renewed concerns around convertible note dilution, Bitcoin volatility, and a Q4 earnings miss, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Cleanspark stands today.
- Size: Cleanspark is a $3.3 Bil company with $632 Mil in revenue currently trading at $11.82.
- Fundamentals: Last 12 month revenue growth of 85.1% and operating margin of -16.5%.
- Liquidity: Has Debt to Equity ratio of 0.25 and Cash to Assets ratio of 0.3
- Valuation: Cleanspark stock is currently trading at P/E multiple of 11.0 and P/EBIT multiple of 9.9
- Has returned (median) 14.1% within a year following sharp dips since 2010. See CLSK Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Moderate valuation – making the stock Attractive. For details, see Buy or Sell CLSK Stock
That brings us to the key consideration for investors worried about this fall: how resilient is CLSK stock if markets turn south? This is where our downturn resilience framework comes in. Suppose CLSK stock falls another 20-30% to $8 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- CLSK stock fell 95.6% from a high of $40.39 on 7 January 2021 to $1.78 on 19 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $23.40 on 25 March 2024 , and currently trades at $11.82
| CLSK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -95.6% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- CLSK stock fell 80.0% from a high of $5.25 on 23 January 2020 to $1.05 on 2 April 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 July 2020
| CLSK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -80.0% | -33.9% |
| Time to Full Recovery | 111 days | 148 days |
2018 Correction
- CLSK stock fell 85.9% from a high of $2.98 on 7 May 2019 to $0.42 on 31 October 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 January 2020
| CLSK | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -85.9% | -19.8% |
| Time to Full Recovery | 68 days | 120 days |
Feeling jittery about CLSK stock? Consider portfolio approach.
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