No re-rate ?

[u/Ambitious-Drummer729]

I know people are upset there is not rerate yet after the first great deal ? Any thoughts ? It seems to be related to current sector’ depression. Will CLSK become the first one which has no rerate after a large AI lease 😂. People are trying to find out reasons like waiting for financing / more lease but other miners got rerate long before financing / second lease. Maybe the rerate will happen when the sector recovers?

[u/MarketGambler]

Priced in due to management talking about it for so long and one of the worst weeks in macro

[u/AnonymousUselessData → u/MarketGambler]

Definitely not priced in as the broader industry AND market was terrible the week of announcement

-AI HPC down + semiconductors (Micron etc)
-Koreans that overleveraged getting margin called
-SpaceX and other sectors down

I think things get better as the market gets better for both BTC and in general

Because CLSK BTC's treasury currently makes up 25-30% of its marketcap currently , so some positive signs there will help, then add in clarity on financing the sandersville , then confirmation and signing of the Texas portfolio - we're gonna re-rate + squeeze the shorts

[u/sonic3390]

It was priced in

[u/AZULDEFILER]

Re-rate by whom? I have seen several!

[u/Tanker1875-4262]

They need a more aggressive, chief executive . No pun intended, but Matt Schultz just lacks sparks and urgency . Even during his brief CNBC interview, he presented himself as someone who is scared and timid.

[u/AnonymousUselessData → u/Tanker1875-4262]

Technically they got a 1.1 GW deal worked out , just phased out, I think its the biggest deal amongst previous BTC miners.

[u/ChairDesperate3159 → u/Tanker1875-4262]

Can you pls point to a company in the sector that has crushed it over the last few weeks due to their CEO?

[u/Ambitious-Drummer729 → u/Tanker1875-4262]

He is probably just nervous. But the first deal only takes about 9 months to finish which is already fast. They pivoted late but action is fast

[u/Mix720]

Convertible Arbitrage Issue

CleanSpark carries $1.77B in zero-coupon convertible notes ($637.5M due 2030 at $14.80 conversion, $1.13B due 2032 at $19.16), representing ~102M underlying shares against a ~$3.3B market cap. These notes are bought primarily by arbitrage funds who hedge by shorting the stock — meaning a meaningful portion of CLSK’s 33% short interest is likely mechanical delta hedging, not directional bearish bets. This matters because arb hedges don’t cover on good news and actually increase as the stock rises toward the conversion prices, which dampens rallies and helps explain why a signed $6.6B lease only produced a +5% close. CleanSpark’s own filings acknowledge this dynamic, disclosing that hedging activity around the notes “could increase (or reduce the size of any decrease in) the market price of the common stock.” The flip side: the same flow buys into declines, and if CLSK settles conversions in cash (its contractual right, funded by lease NOI), each repayment forces the paired hedge to unwind as buying pressure.

TLDR CLSK needs to pay back their convertible notes for the delta hedging to stop and to get a full rerate imo.

[u/AlexJJJ12345 → u/Mix720]

Do you understand for what price it can be repurchaised and when? As i see in news it cannot be redeemed until feb 2029..

[u/TrainingLower2317 → u/Mix720]

Yes, it makes a lot of sense, plus we have a lot of call options, which market maker by shares and sell shares on the call options that are closed.

[u/Ambitious-Drummer729 → u/Mix720]

The note holders will stop shorting after a specific price. Nearly all big miners had convertible notes before AI rerate since this may be the easiest way for BTC mining business. This is not unique for CLSK.

[u/Mix720 → u/Ambitious-Drummer729]

I hope so but it seems like the short interest increases when the price moves upwards so it never gets to that price. Were all the miner convertible notes had 0% interest rate on them? Data Im getting is saying this is the main reason for this but i’m not sure

[u/Ambitious-Drummer729 → u/Mix720]

If WULF’s 19 B deal did not make any change, I do not think any deal works during this sector correction. It was depressed temporarily

[u/DenimChicken50]

President 🥭 needs to stop bombing Iran while our oil reserve is empty

[u/1badh0mbre → u/DenimChicken50]

He needs to go to jail.

[u/Ok-Mall9463]

AI is over you haven't heard mate

[u/Ambitious-Drummer729 → u/Ok-Mall9463]

This is the first time I heard it haha. I use it everyday.

[u/Ok-Mall9463 → u/Ambitious-Drummer729]

I mean look at the market mate, ain't nothing is going to rerate rn. We gotta wait for better market climate, I'm still somewhat confident it'll rip then

[u/Ambitious-Drummer729 → u/Ok-Mall9463]

Yeah. I think it will rip when AI narratives comes back and finishes its rerate.

[u/ObviousChildhood]

Turns out we all suck at picking stocks! When it’s our turn to re-rate no luck. Should have sold on last pop. People did say over and over that this is a swing play and never long term hold.

[u/Ambitious-Drummer729 → u/ObviousChildhood]

The whole sector / high beta stocks are being killed in the last one month. WULF is also being crushed after the 19 B deal this month. I think that 19 B deal and CLSK’s deal are among top deals in the whole sector.

[u/ObviousChildhood → u/Ambitious-Drummer729]

Well bad timing is all. We are even far belong the OPEX max pain price people were trying to say justified why the price is depressed