What happened
With the price of Bitcoin (BTC -1.07%) continuing to tumble today, cryptocurrency investors would be right to suspect that shares of CleanSpark (CLSK -4.73%) are also sliding. But it's not only the dip in Bitcoin's price that's leading the market away from the bitcoin mining and energy technology company today. CleanSpark reported fourth-quarter 2021 earnings yesterday after the market closed, and investors weren't happy.
As of 11:15 a.m. ET on Wednesday, CleanSpark's stock is down 9.4%
Image source: Getty Images.
So what
With $27.1 million on the top line, CleanSpark beat analysts' revenue estimates of $23.3 million. The bottom of the income statement, however, failed to provide a similarly pleasant surprise.
While analysts had expected the company to book earnings per share of $0.07, CleanSpark reported a loss per share of $0.07. Although the net loss in the fourth quarter was far below the earnings that analysts had been expecting, CleanSpark's overall profitability this year was significantly better than in 2020. The 2021 net loss of $0.75 per share compared to a net loss of $2.44 in 2020.
The recent decline in Bitcoin can't be discounted as a factor in the sell-off in CleanSpark's stock today. The company reported yesterday that it held 627 bitcoin at the end of fiscal 2021, for a carrying value of $23.6 million.
Now what
It's fairly common for stocks to fall when companies fail to live up to analysts' expectations; likewise, it's to be expected that CleanSpark dips as Bitcoin slides lower. But the company's sharp decline today seems a little overdone, leaving those on the sideline with a chance to start a position at a cheaper price than yesterday.
