What's Going On With Bitcoin-Miner CleanSpark's Stock?

CleanSpark, Inc. CLSK shares are trading higher Thursday amid strength in Bitcoin as investors digest the first interest rate cut from the Federal Reserve in four years.

The Details: CleanSpark shares are climbing amid a broad market rally as investors digest the Fed's interest rate cut which marked the first in more than four years. Lower interest rates increase the attractiveness of risk assets like stocks and cryptocurrencies. 

Bitcoin BTC/USD is trading above the $63,000 level Thursday and saw increased trading following the Federal Reserve’s surprise decision, which exceeded the anticipated 25 basis point cut. 

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"These markets should benefit from the formalization of the Fed’s dovish shift. Our long-term investment thesis for Bitcoin remains intact, and regardless of the near-term direction of monetary policy, BTC is well-positioned for growth as institutional adoption continues to gain momentum," Hashdex’s CIO Samir Kerbage wrote in a note sent to Benzinga.

CLSK Stock Prediction 2024:

Cleanspark’s revenue growth in FY23 was 20.22%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.2%, growing 1.7% from last year. The unemployment rate was most recently reported as 4.2%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Cleanspark stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against Cleanspark's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Cleanspark operates in the Information Technology sector. The stock has experienced average annual growth of -6.81% compared to the -16.0% average of its peer companies. This is below the broader sector movement of Cleanspark.

CLSK Price Action: According to Benzinga Pro, CleanSpark shares are up 7.27% at $9.48 at the time of publication Thursday. 

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Image: Roy Buri from Pixabay