CleanSpark (NASDAQ: CLSK) stock saw a remarkable surge of 11% in intraday trading on Monday, propelled by the upward momentum in the price of Bitcoin (BTC/USD) following the recent halving event.
The Bitcoin-mining stocks, including CleanSpark (CLSK), have captured investors’ attention after the recent halving event.
The fourth Bitcoin halving, a programmed process recurring approximately every four years or after every 210,000 blocks, was completed last Friday. This event has resulted in a significant reduction in miner rewards for successfully mined transactions. The miner rewards decreased from 6.25 bitcoin to 3.125 bitcoin.
Bitcoin exhibited significant volatility in the lead-up to the halving. The historical data suggests a tendency for crypto markets to rally in the months following a halving event.
JPMorgan analyst Reginald Smith views the halving as a significant test for mining companies but remains optimistic about the long-term prospects for the strongest operators, as reported by CNBC.
Smith said in a recent note to clients,
“All else equal, the halving will cut industry revenues in half, triggering a wave of consolidation and business closures, while (hopefully) rationalizing the network hash rate and industry capex, which is ultimately good for the remaining operators.”
CleanSpark (NASDAQ: CLSK) Stock Price Action
At the time of this report, CLSK stock is trading at $19.09, showing a 10.99% increase from the previous trading session. This week, it has surged in value by 29.95%. Trading activity has seen 45,730,916 (45.73 million) shares changing hands, exceeding the average daily volume of 36.99 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
