CleanSpark becomes most shorted Bitcoin reserve firm

CleanSpark (Nasdaq: CLSK) revealed the sentiment for the AI narrative, as well as investor attitudes to mining and $BTC treasuries. CLSK has the biggest share of open interest among $BTC mining stocks.

CleakSpark (Nasdaq: CLSK) reveals short open interest at 34.89% of the free float, with 4.71 days to cover. This is the biggest share of stocks to be shorted among all $BTC treasury companies. Currently, Strategy (MSTR) has the biggest dollar value of shorted shares, but CleanSpark gauges the sentiment for multiple narratives.

CLSK traded at $11.42, up from $8.18 at the end of March. Currently, CLSK is in the middle of its long-term range, but still below the peak hype of 2024, when treasury companies were still a novelty.

The significant short open interest suggests CLSK is expected to slide lower. In the short term, the short positions may still spark a short squeeze and a rally.

CleanSpark is still a successful miner

CleanSpark made a relatively late pivot to AI, announcing its plans in late 2025. Currently, CleanSpark still has a leading position as a pure-play $BTC miner for the US market. The company offers shared mining, with up to 50 EH/s in mining power, lining up with MARA Holdings and other top block producers with their own large facilities.

CleanSpark is also profitable, based on its mining activities. In 2025, the company achieved $766.3M in revenues and $364.5M in annual income, retaining $1B in working capital by the year’s end. The mining operator also retains 13,363 $BTC from self-mining and legacy operations.

Why is CLSK shorted?

Some of the reasons for shorting CLSK are the stock’s usual fluctuations and drops to local lows. Miners are still heavily dependent on $BTC sentiment and have gone through periods of mining at a loss.

The other reason is that the AI pivot may be late, as the general hype for data centers and GPU fleets is slowing down.

The company has also issued more common stock since 2020, from 22 million to 280 million. Buybacks for 40 million CLSK are not sufficient, and the stock is viewed with some skepticism. Additionally, CLSK has not reflected the rise of $BTC.

CleanSpark was also not a true playbook company, thus only having a very brief period of hype as a treasury holder. Despite the nominal price gains, CLSK is seen as potentially underperforming, leading to shorting attempts.

The stock is also competing for attention with other companies pivoting to AI, including Iren Ltd. (Nasdaq: IREN), Mara Holdings (Nasdaq: MARA), and even short-term rallies like Allbirds (Nasdaq: BIRD).

For others, CleanSpark is a hidden gem, with well-established mining that may be profitable even at a lower $BTC price. However, the company may face mining asset depreciation and decommissioning in the coming years. Currently, CleanSpark is only exploring AI data centers, with no established contracts.