Bitcoin mining company CleanSpark is currently under significant short-selling pressure, with the size of its short positions ranking high among small-to-mid, large, and mega-cap companies. Data shows that as of May 15, approximately 84.06 million shares of the company were sold short, representing 33.45% of its float. More recent figures from April 30 indicate this short interest ratio has climbed even higher to 36.6%. This level is exceptionally rare both within the industry and across the broader market.
The backdrop for this substantial shorting activity is the ongoing downturn in the cryptocurrency market. Since peaking in October 2025, the total market capitalization of cryptocurrencies has lost over $2 trillion, a decline of 48%. Bitcoin's recent persistent decline has further squeezed miners' profit margins, with the cryptocurrency falling more than 6% this week. Compounded by the impact of the Bitcoin halving event, which reduced the miner block reward to 3.125 Bitcoin, mining companies with high total sustaining costs are facing severe profit compression.
The company's fundamentals are also under pressure. CleanSpark's released financial results for the second quarter of fiscal year 2026 showed a net loss, causing the stock price to fall. As of the close on June 4, the stock was trading at $16.66, down 5.39% for the day. The company's interim report for the fiscal period from October 1, 2025, to March 31, 2026, showed revenue of $318 million, a decrease of 7.68% year-over-year, and a net loss as high as $757 million. The company had already reported a net loss of $378.7 million in the first quarter, and these consecutive losses have raised serious investor doubts about its profitability.
However, some analysis points out that the elevated level of short interest itself could become a catalyst for a potential stock price increase. CleanSpark's short interest represents about 4 to 5 days of trading volume to cover. If unexpected positive news emerges, a concentrated effort by short sellers to close their positions could trigger a short squeeze. Management is attempting to boost market confidence through diversification efforts. CleanSpark claims to have contracted 1.8 gigawatts of power capacity and is gradually expanding its business from pure Bitcoin mining into AI and high-performance computing infrastructure. Additionally, the company holds 13,470 Bitcoin on its balance sheet, making it one of the largest corporate holders of Bitcoin among listed miners.
Although the company achieved a doubling of revenue and 350% growth in net profit during the 2025 fiscal year, the consecutive losses in fiscal 2026 combined with low Bitcoin prices have made it difficult for investors to form a consensus on the company's outlook. The market widely believes that CleanSpark's stock price performance will largely depend on whether Bitcoin prices can stabilize and whether its transition into AI infrastructure can deliver on its promises.