Can Cleanspark Stock Recover If Markets Fall?
Cleanspark (CLSK) stock is down 15.1% in a day. The recent slide reflects missed earnings, insider selling, and Bitcoin market weakness, 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 $3.4 Bil company with $766 Mil in revenue currently trading at $11.91.
- Fundamentals: Last 12 month revenue growth of 102.2% and operating margin of -14.0%.
- Liquidity: Has Debt to Equity ratio of 0.2 and Cash to Assets ratio of 0.32
- Valuation: Cleanspark stock is currently trading at P/E multiple of 9.2 and P/EBIT multiple of 9.9
- Has returned (median) 29.8% within a year following sharp dips since 2010. See CLSK Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Low 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.
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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 $11.91
| 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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