Bitcoin‑Mining Shares Slide as Quarterly Results Miss Forecasts
Declining crypto prices and a post‑halving slowdown drive investors toward a risk‑off stance.
Market reaction
On Thursday, shares of publicly traded crypto‑mining firms took a sharp hit after both CleanSpark (NASDAQ: CLSK) and IREN Ltd. reported earnings that fell short of Wall Street expectations. The broader sector followed suit, with notable drops in RIOT Platforms (RIOT) and MARA Holding (MARA).
The tumble coincided with a 12 % drop in Bitcoin (BTC) over the previous 24 hours, briefly sliding to the $60,000 threshold on Friday morning. Crypto‑market capitalisation contracted by almost 9 % according to CoinMarketCap data, while the Crypto Fear & Greed Index sank to a single‑digit reading—its lowest point since the Terra collapse of 2022.
CleanSpark (CLSK)
- Share price: Closed down 19.1 % on Thursday; an additional 8.6 % loss in after‑hours trading brought the price to $7.55.
- Revenue: $181.2 million for the quarter ended 31 December, missing the consensus estimate of $186.7 million by roughly 2.9 %.
- Profitability: The company posted a net loss of $378.7 million, a stark reversal from the $246.8 million profit recorded in the same quarter a year earlier.
- Management outlook: CFO and President Gary Vecchiarelli emphasized a strategic pivot away from a sole‑focus on mining. He highlighted artificial‑intelligence (AI) infrastructure as a new revenue driver, positioning Bitcoin mining as a cash‑flow source while AI services could “monetize the assets over the long term.”
Analysts at Zacks attributed part of the earnings shortfall to reduced mining rewards following the April 2024 Bitcoin halving, which lowered overall mining efficiency and squeezed margins.
IREN Ltd.
- Share price: Fell 11.5 % at market close and slipped an extra 18.5 % in after‑hours trading, ending the day at $32.42.
- Revenue: $184.7 million for the final quarter of 2025, trailing Wall Street forecasts by roughly 16.5 %.
- Profitability: Reported a net loss of $155.4 million versus a net profit of $384.6 million in the comparable period a year earlier.
- Strategic shift: Like CleanSpark, IREN has been transitioning from pure Bitcoin mining to offering AI‑related infrastructure services, seeking to diversify cash‑flow streams amid a weakening crypto price environment.
Sector‑wide fallout
Other major mining‑related equities also suffered steep declines on Thursday:
| Ticker | Daily decline |
|---|---|
| RIOT Platforms | –14.7 % |
| MARA Holding | –18.7 % |
The collective sell‑off reflects heightened investor sensitivity to crypto‑price volatility. Bitcoin’s 30‑day price slide of roughly 29 % has eroded confidence in mining profitability, pushing the market into a risk‑off mode.
Analysis
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Post‑halving headwinds – The April 2024 halving slashed block rewards, reducing the revenue ceiling for miners. With Bitcoin’s price trending lower, the cost‑per‑Bitcoin mined has risen, compressing margins for companies that depend heavily on mining income.
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Diversification to AI – Both CleanSpark and IREN are actively repositioning toward AI‑infrastructure offerings. This move aims to transform mining facilities into multi‑purpose data centers, leveraging existing power‑intensive assets for higher‑margin services. The strategy signals a broader industry trend: mining firms are seeking “dual‑use” models to hedge against crypto‑price cycles.
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Investor sentiment – The plunge in the Crypto Fear & Greed Index to a score of 9 underscores a prevailing pessimism. Historically, such low readings have preceded extended periods of underperformance for crypto‑related equities, suggesting further downside risk in the near term.
- Balance‑sheet stress – The sizable net losses reported by CleanSpark and IREN raise concerns about cash‑burn rates, especially as capital‑intensive infrastructure projects (e.g., AI data centers) require substantial upfront investment. Future earnings guidance will likely focus on the timeline for monetizing these new assets.
Key Takeaways
- Earnings miss: CleanSpark’s and IREN’s revenues fell short of analyst forecasts, triggering double‑digit share price declines.
- Bitcoin price pressure: A 12 % drop in BTC and a 29 % decline over the past month have directly impacted mining profitability.
- Strategic pivot: Both companies are expanding into AI infrastructure, hoping to offset mining volatility with higher‑margin services.
- Sector sentiment: The Crypto Fear & Greed Index’s single‑digit reading reflects widespread investor caution, potentially prolonging the bearish phase for mining stocks.
- Future outlook: Investors will watch closely for progress on AI‑related projects and any stabilization in Bitcoin pricing, which together will determine whether the current sell‑off is a short‑term correction or the start of a longer downturn for crypto‑mining equities.
Source: https://cointelegraph.com/news/bitcoin-miners-iren-cleanspark-financial-earnings-short?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
