CLSK UPDATE - Good and Bad (Patreon)

REM THE RULES

1) Miners are cut throat

2) Never allocate more than 5% to miners.... said this since day 1 years ago

Cleanspark is currently facing mixed reactions from its stakeholders due to a recent proposal to double its authorized common shares from 300 million to 600 million. This move is seen as a significant dilution of existing shares, which has raised concerns among shareholders about the potential impact on stock value.

Good Signs for Cleanspark

• Strategic Expansion: Cleanspark is aggressively expanding its Bitcoin mining operations. The increase in authorized shares could provide the necessary capital for acquiring new mining sites and expanding existing facilities, which could enhance their mining capacity and operational efficiency. Dilution is not bad this year so far from my models.

• Capital for Growth: The company aims to secure more power capacity and invest in efficient mining equipment. They are sticking with a focused strategy and not dabbling in HPC.

• Market Positioning: They are so far lean and mean, and best of the group - but we have to make sure they maintain that lead.

Bad Signs for Cleanspark

• Shareholder Concerns: The proposed 100% increase in authorized shares is viewed negatively by many shareholders, as it represents a significant dilution of their existing holdings. This dilution could potentially decrease the value of their shares, leading to dissatisfaction among long-term investors.

• Speculation and Uncertainty: There is speculation about the reasons behind the share increase, with concerns that it might be used for non-beneficial purposes, such as executive compensation or unnecessary acquisitions.

• Potential Misalignment with Shareholder Interests: Some stakeholders believe that the company's focus on expansion and growth might not align with shareholder interests, as the dilution could overshadow potential benefits from increased mining capacity and efficiency.

Overall, i am hedged at $20, by selling that covered call for $3 reducing my cost basis to basically zero. I am waiting for a autumn, fall bitcoin bounce, and when that happens, my bitcoin miners will be the first thing that I exit.

I will rely on the new PROFIT TAKING Model for my exits (PS Execs and Suite Users all have it but our website backend has an issue so we are unable to launch it this week, hope to get that fixed next week.)