Shares of major Bitcoin mining companies, including CleanSpark and IREN, plunged sharply on Thursday following disappointing quarterly earnings and a broader drop in cryptocurrency prices.
CleanSpark Earnings Fall Short
CleanSpark (CLSK) led the decline, falling 19.13% during regular trading and an additional 8.6% after hours to $7.55. The company reported $181.2 million in revenue for the quarter ending December 31, missing analyst expectations of $186.66 million. Net losses surged to $378.7 million, compared with a $246.8 million profit in the same period last year. Analysts cited lower mining rewards after Bitcoin’s April 2024 halving, which reduced operational efficiency and constrained profits.
CleanSpark’s CFO highlighted efforts to diversify the business, saying artificial intelligence (AI) infrastructure and digital asset management will complement mining revenue and optimize capital over time.
IREN Also Sees Decline
IREN Ltd., which is increasingly focused on AI infrastructure, reported $184.69 million in revenue, falling 16.5% below estimates, and posted a net loss of $155.4 million versus $384.6 million profit in the prior year. Shares dropped 11.46% during the day and fell 18.5% after hours to $32.42.
The downturn extended to other mining stocks, with RIOT Platforms down 14.71% and MARA Holding falling 18.72%. Bitcoin itself fell 12% over 24 hours, briefly touching $60,000, and the total crypto market capitalization declined nearly 9%. Market sentiment has deteriorated sharply, with the Crypto Fear & Greed Index at 9 out of 100, the lowest level since mid-2022.
Crypto Fear & Greed Index fell to a score of 9 out of 100 on Friday.
This trend underscores how earnings misses and falling Bitcoin prices continue to weigh heavily on crypto-related equities.
Disclaimer
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