In March, everyone said that $CLSK was the best miner.
I thought it was funny because everyone used to say it was $MARA or $RIOT or even $CIFR earlier in the year (but when those didn't work, everyone used hindsight bias to say it was CLSK).
$CLSK has fallen -64% since then (1st chart)
The stock is now down -20% YTD, erasing what had previously been a high YTD gain of +124% in March.
What's worse is the relative performance, because 99% of investors in $CLSK are using as a way to gain high beta exposure upside to Bitcoin.
In other words, instead of buying BTC, they are taking additional risk by investing in CLSK in order to capture more upside...
But how is that working?
Not well.
YTD, Bitcoin is up +44%.
YTD, CleanSpark is down -20%.
Net net, CLSK/BTC is down -45% YTD and also down -66% from the YTD highs in February 2024 (2nd chart).
So CLSK investors have captured all of the risk and practically none of the reward (unless they took profits)... however, I'm guessing that most didn't take profits at/near the top because all of them were telling me that it was going to $100/share back in March.
But hey, let's take it a step further and even compare how CLSK has performed against its peer group, analyzing the performance of CLSK vs. WGMI (the BTC mining ETF).
Surely (sarcasm), it's performed the best because everyone said it was the best, right?
Yeah, no (3rd chart).
CLSK/WGMI is down -21% YTD.
It's also been in a nosedive since March 2024, meaning that CLSK investors have experienced outsized losses relative to other BTC miners over the past 6 months.
People mocked me for selling miners in March and rotating capital into MSTR (after I had already taken a substantial MSTR position in January 2024).
So how has CLSK performed against $MSTR since March?
It's down -80% (4th chart).
Yes, you read that right... eighty percent.
YTD, CLSK/MSTR is down -70%.
Brutal, but don't say I didn't warn you.
Why am I raising all of these points?
I genuinely don't know.
Maybe as a way to highlight many of the harmful narratives that are easily tossed around & embraced on this platform... ideas that sound good or foolproof in the moment that become horrendous investments tainted by severe underperformance.
From a psychological standpoint, it's fascinating.
From a market standpoint, it's fascinating.
CLSK went from first to worst.
What's funny (and hopefully you've already had this question click) is the following: What are people saying is the best miner today? How are they coming to that conclusion? Based on what evidence? Are they using hindsight to fit their bias? Will they be proven correct? Will it fall to the same demise as CLSK?
Time will tell.
Be careful out there fam.
