Is CleanSpark (CLSK) the Best Bitcoin Mining Stock to Invest In?
Bitcoin mining stock CleanSpark (CLSK) has seen an 18% increase year-to-date, which falls short of Bitcoin’s 121% rise over the same period. Analyst Caleb Franzen of Cubic Analytics raises concerns about the effectiveness of investing in mining stocks for higher exposure to Bitcoin’s performance.
CleanSpark (CLSK) vs Bitcoin Mining ETF (WGMI)
Franzen highlights that CLSK has underperformed Bitcoin and has lagged behind its peers. In comparison to the Bitcoin mining ETF (WGMI), CLSK is down more than 15% this year, indicating weaker performance against a basket of miners.
Are There Better Options?
On the other hand, stocks like TeraWulf (WULF), Hut 8 Mining (HUT), and Core Scientific (CORZ) have shown more robust trends. These companies have consistently recorded higher highs and higher lows throughout 2024, indicating a positive trend relative to their industry group.
Franzen emphasizes the importance of aligning with market trends rather than resisting them. He points out that alternatives such as Bitcoin itself, Coinbase (COIN), Robinhood (HOOD), MicroStrategy (MSTR), and DeFi Technologies (DEFTF) have outperformed mining stocks this year.
Investor Advice
Encouraging investors to remain objective, Franzen suggests a rotation out of underperforming miners in favor of better-performing assets. “You can either listen to the market, or you can operate with cognitive dissonance and bias to stay trapped in losing narratives,” he advises.
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