LAS VEGAS - CleanSpark , Inc. (NASDAQ:CLSK), a company specializing in bitcoin mining and data center operations, today clarified the recent trading halt of its stock and warrants on the Nasdaq. The halt, which occurred earlier this week, was due to a clerical error in the calculation of outstanding warrants and the number of shares they represent, rather than any underlying issues with the company's business or financials.
The error originated from the conversion of warrants issued by GRIID Infrastructure, Inc., which became CleanSpark warrants following CleanSpark's acquisition of GRIID on October 30, 2024. The warrants were supposed to be adjusted to reflect the merger exchange ratio, but incorrect documentation, including the listing application filed with Nasdaq, led to the miscalculation.
As a result of the error, the 13,800,000 outstanding warrants were inaccurately represented, when they should have been adjusted to purchase a total of 960,395 shares of CleanSpark's common stock at an exercise price of $165.24 per full share. CleanSpark has communicated with Nasdaq representatives to correct the mistake and is working to resume trading of its common stock and warrants as soon as possible.
This incident does not affect CleanSpark's operations, SEC filings, financial statements, or securities. The company continues to focus on its core business of running low-carbon power data centers that support bitcoin mining. CleanSpark prides itself on cultivating trust and transparency in its operations and among the communities where it operates.
The information in this article is based on a press release statement from CleanSpark, Inc.
In other recent news, CleanSpark Inc. reported a 32% increase in its October bitcoin mining yield, mining 655 bitcoins. The company also completed the acquisition of GRIID Infrastructure Inc., which is expected to expand its operational capacity in Tennessee. Furthermore, CleanSpark doubled its authorized common stock from 300 million to 600 million, following approval from its shareholders.
In response to these developments, analysts at Macquarie upgraded CleanSpark's stock to an Outperform rating, while firms such as H.C. Wainwright and Cantor Fitzgerald maintained their positive ratings. CleanSpark also promoted Brian Carson to the position of Chief Accounting Officer.
The company's total bitcoin holdings reached 8,701, with 2.78 bitcoins sold in October at an average price of approximately $62,470 each. Additionally, CleanSpark's deployed mining fleet consisted of 196,032 units, achieving an average efficiency of 20.89 joules per terahash and ending the month with an operating hashrate of 31.3 exahashes per second.
As part of its expansion strategy, CleanSpark is constructing two immersion-cooled bitcoin mining data centers in Cheyenne, Wyoming, and two additional mining sites near Clinton, Mississippi. These recent developments reflect CleanSpark's commitment to supporting bitcoin infrastructure in an environmentally responsible manner.
InvestingPro Insights
In light of CleanSpark's recent trading halt due to a clerical error, it's crucial to examine the company's financial health and market performance. According to InvestingPro data, CleanSpark's market capitalization stands at $3.5 billion, reflecting significant investor interest despite the recent hiccup.
The company's revenue growth is particularly noteworthy, with a 140.89% increase in the last twelve months as of Q3 2024, and a 128.69% quarterly growth in the same period. This robust growth aligns with CleanSpark's focus on expanding its bitcoin mining and data center operations.
InvestingPro Tips highlight that CleanSpark's stock price movements are quite volatile, which is evident in its recent performance. The company has shown a strong return of 50.78% over the last month and an impressive 246.17% over the past year. This volatility and high returns may be attributed to the dynamic nature of the cryptocurrency mining industry and CleanSpark's aggressive growth strategies.
Another relevant InvestingPro Tip indicates that CleanSpark operates with a moderate level of debt, which could provide the company with financial flexibility as it continues to expand its operations and navigate challenges like the recent warrant miscalculation.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for CleanSpark, providing a deeper understanding of the company's financial position and market outlook.
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