CleanSpark Inc. (NASDAQ: CLSK) remains the most heavily shorted publicly traded crypto company valued above USD$2 billion, reflecting growing disagreement among investors about the future of Bitcoin mining stocks.
Short interest in CleanSpark climbed to 33.04 per cent in June from 32.76 per cent in May. The increase came during a difficult month for the cryptocurrency market. Bitcoin fell as low as USD$58,000, while U.S. spot Bitcoin exchange-traded funds recorded USD$4.5 billion in net outflows, their largest monthly withdrawals since launching in January 2024.
However, CleanSpark continued expanding its Bitcoin holdings despite the market weakness. The company produced 614 Bitcoin during June and finished the month with 13,924 BTC. That total increased from 13,470 Bitcoin at the end of May.
Additionally, CleanSpark maintained an operating hashrate of 50 exahashes per second. The company also reported 1.8 gigawatts of contracted power capacity, with 808 megawatts already in use.
Chief executive officer and chairman Matt Schultz said the company’s mining operations remained strong through the volatile market. He added that CleanSpark advanced commercialization work at its Sandersville site while moving closer to energizing its Texas operations.
Meanwhile, investors continue watching the company’s strategy beyond traditional Bitcoin mining. CleanSpark has expanded its focus toward high-performance computing by developing power assets and data centre infrastructure that could support artificial intelligence workloads.
That approach places the company alongside several Bitcoin miners seeking new revenue opportunities outside cryptocurrency production. However, investors continue debating whether those investments can offset weaker Bitcoin prices and the industry’s high capital costs.
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Multiple big name companies have garnered short selling attention
CleanSpark shares fell 7.6 per cent on Tuesday, adding to recent volatility across crypto mining stocks. The company’s unusually high short interest suggests many traders still expect further declines. Conversely, others view its growing Bitcoin treasury, expanding power portfolio and AI infrastructure ambitions as assets that could strengthen its long-term position if digital asset markets recover.
Heavy short selling has become a defining feature of the publicly traded Bitcoin mining sector, with many of the industry’s largest companies attracting significant bets from investors expecting their share prices to fall.
CleanSpark currently leads the group, with about one-third of its publicly traded shares sold short. However, the company is far from alone. MARA Holdings Inc (NASDAQ: MARA) also carries exceptionally high short interest, while TeraWulf Inc (NASDAQ: WULF), Hut 8 Corp (NASDAQ: HUT), Cipher Mining Inc (NASDAQ: CIFR) and Riot Platforms Inc (NASDAQ: RIOT) have all remained among the market’s more heavily shorted crypto-related stocks.
The trend reflects ongoing uncertainty about the future of Bitcoin mining following the April 2024 halving, which reduced mining rewards by 50 per cent. Lower rewards have increased pressure on miners to improve efficiency while managing rising operating and financing costs.
Additionally, many of the sector’s largest companies have invested heavily in new facilities, power infrastructure and computing capacity. Those projects require substantial capital, leaving investors divided over whether future revenue will justify the spending.
Meanwhile, several Bitcoin miners have expanded beyond cryptocurrency production by pursuing high-performance computing and artificial intelligence data centre opportunities. Supporters argue those businesses could diversify revenue streams and reduce dependence on Bitcoin prices. However, critics question whether miners can successfully compete in the rapidly evolving AI infrastructure market.
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Elevated short interest could amplify future gains
The combination of volatile cryptocurrency prices, capital-intensive expansion plans and uncertain returns has encouraged many traders to bet against the sector.
At the same time, the elevated short interest could amplify future gains if Bitcoin prices strengthen or miners deliver stronger-than-expected financial results. In those situations, short sellers may rush to buy back borrowed shares, creating additional demand and potentially accelerating stock price increases through a short squeeze.
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