On Friday, September 26, JPMorgan Chase & Co. made waves in the cryptocurrency investment community by downgrading CleanSpark Inc. (NASDAQ: CLSK) from an ‘overweight’ rating to ‘neutral’ . The price target remains unchanged at $14, causing analysts and investors alike to question the reasoning behind this strategic shift.
According to JPMorgan, the downgrade reflects the bank’s view that CleanSpark’s stock is “fully priced” after the company’s notable announcement in June, where it revealed an impressive expansion to 50 exahashes per second (EH/s). As of September 28, CleanSpark secured its position as the seventh-largest Bitcoin mining company by market capitalization, solidifying its presence in a competitive landscape.
By the close of trading on Friday, CleanSpark’s stock was priced at $13.68, reflecting an 80% gain over the past six months. However, technical indicators suggest that the stock has reached an overbought state, which prompts caution among potential investors.
Currently valued at $3.64 billion on Nasdaq, CleanSpark has demonstrated robust financial health, showing a nearly 38.76% increase in revenue over the last year. This growth is underpinned by a strong balance sheet, evidenced by a quick ratio of approximately 4.37, indicating the company’s ability to meet short-term liabilities.
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InvestingPro reports that JPMorgan retains a positive outlook on CleanSpark as a “well-capitalized, best-in-class operator with M&A expertise.” However, the analyst firm suggests that the stock may be more appealing following a price pullback, emphasizing that the downgrade is primarily a response to valuation rather than operational concerns.
To bolster its growth ambitions, CleanSpark has recently increased its Bitcoin-backed credit facility with Coinbase Prime by $100 million, bringing its total lending facilities to $400 million. This newfound capital will be crucial for supporting additional energy projects and further expanding its mining operations.
CleanSpark’s recent trajectory also comes with notable leadership shifts. Gary A. Vecchiarelli has been promoted from CFO to President while continuing his role as the Company’s CFO. Scott Garrison has stepped into the role of Chief Development Officer and Executive Vice President, overseeing network and data center expansion initiatives.
In a somewhat divergent move, other smaller players in the crypto space are also recalibrating their strategies. For instance, Thumzup Media Corporation has announced its intention to transition into Dogecoin mining, which includes plans to acquire DogeHash Technologies and deploy 2,500 mining rigs. However, this strategy hinges on shareholder approval and comes amidst a significant stock decline for Thumzup, which recently dropped nearly 45% following the announcement.
Related: What is Bitcoin mining? Explained
This story was originally reported by TheStreet on September 28, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
