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In short, I bought more $CLSK today.
Lot’s of fear in the CleanSpark and I love buying senseless fear.
People over reacting to share authorization NOT dilution. Price action in the miners certainly not being helped by $BTC either.
𝙎𝙤 𝙡𝙚𝙩’𝙨 𝙩𝙖𝙡𝙠 𝙖𝙗𝙤𝙪𝙩 𝙬𝙝𝙖𝙩’𝙨 𝙜𝙤𝙞𝙣𝙜 𝙤𝙣:
Its technically not dilution, at least not at this point. They are wanting to authorize a share increase. They would still need to pass on the vote to all shareholders to progress it but it’s important to bear in mind…. the current authorized share count is 100M to 300M…. And it never reached that top level. Currently it’s sits at 228ish.
If they wish to dilute later on it simply gives them a faster turn around to do so and if they have a plan to make that dilution accretive to shareholders.. then i would be ok with that. They have a very good track record of doing so.
The likely game plan here is for CLSK to have the ability to raise a lot of cash if they want to make an aggressive move in the market quickly… like buy a smaller competitor. If the price is right, it could be a great deal in the long run anyway. At the very least there would be a lot of expansion in hash rate.
From 2023 its 2.8Xd its share count and hash rate has gone up 3.16X in the same time period. So around 180% increase in shares for 216% increase in hash so far but they still having new rigs to get online so this will increase.
Mara has 1.7Xd and hash rate has gone up 2.6X (70% share increase for 160% increase in hash)
BITF has 1.7Xd and hash rate has gone up 2.2X
Riot has 1.5Xd and hash rate has gone up 2.09X
CIFR has 1.27Xd and hash rate has gone up 1.45X
So even with a cursory glance, I’d say the money is being well spent and invested in future growth and its very clear that more dosh = better hash rate which normally translates to a higher valued stock when combined with holding onto BTC as a stack etc. Anyone investing in miners know hash rate is king and If you don’t want to die during the halving event. You gotta go beast mode and grow.
But this is all a big if and I think most of the issue with this comes from investors not liking the commentary that’s coming from CLSK with this statement: “If we fail to obtain stockholder approval of this proposal at the Special Meeting, we intend to continue to seek to obtain stockholder approval at each subsequent annual meeting of stockholders and/or special meeting of stockholders until such approval has been obtained..”
Given the size of the proposed new share cap (Double) it could be considered rather aggressive and honestly I would have preferred more hand holding for investors with a gentler approach to guide them through reasons etc. The hostility here Isn’t ideal, but it’s not new.
Hope that clears things up a little 🤗
Source: Street Insider posted a Notice of special meeting for CLSK stock holders.
