CleanSpark (NASDAQ: CLSK) now carries the highest short interest among all Bitcoin treasury firms, with 34.89% of its free float sold short—a warning sign for potential volatility. The elevated bearish positioning sets the stage for a sharp correction or a powerful short squeeze rally, as the stock trades at $11.42, well below its 2024 hype peak but up significantly from March lows.

CleanSpark is still a successful miner

CleanSpark made a relatively late pivot to AI, announcing its plans in late 2025. Currently, CleanSpark still has a leading position as a pure-play BTC miner for the US market. The company offers shared mining, with up to 50 EH/s in mining power, lining up with MARA Holdings and other top block producers with their own large facilities. 

CleanSpark is also profitable, based on its mining activities. In 2025, the company achieved $766.3M in revenues and $364.5M in annual income, retaining $1B in working capital by the year’s end. The mining operator also retains 13,363 BTC from self-mining and legacy operations. 

Why is CLSK shorted?

Some of the reasons for shorting CLSK are the stock’s usual fluctuations and drops to local lows. Miners are still heavily dependent on BTC sentiment and have gone through periods of mining at a loss. 

The other reason is that the AI pivot may be late, as the general hype for data centers and GPU fleets is slowing down. 

The company has also issued more common stock since 2020, from 22 million to 280 million. Buybacks for 40 million CLSK are not sufficient, and the stock is viewed with some skepticism. Additionally, CLSK has not reflected the rise of BTC. 

CleanSpark was also not a true playbook company, thus only having a very brief period of hype as a treasury holder. Despite the nominal price gains, CLSK is seen as potentially underperforming, leading to shorting attempts.

The stock is also competing for attention with other companies pivoting to AI, including Iren Ltd. (Nasdaq: IREN), Mara Holdings (Nasdaq: MARA), and even short-term rallies like Allbirds (Nasdaq: BIRD).

For others, CleanSpark is a hidden gem, with well-established mining that may be profitable even at a lower BTC price. However, the company may face mining asset depreciation and decommissioning in the coming years. Currently, CleanSpark is only exploring AI data centers, with no established contracts.

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