Shares of major Bitcoin mining companies plunged after earnings reports disappointed investors, adding pressure to stocks already weakened by a sharp downturn in the broader crypto market. A steep Bitcoin sell-off pushed traders into risk-off mode, triggering widespread declines across crypto-related equities.
The total cryptocurrency market capitalization dropped nearly 9% on Thursday, while Bitcoin slid as much as 12% in 24 hours, briefly touching the $60,000 level before stabilizing. The sudden drop weighed heavily on mining stocks, which tend to amplify Bitcoin’s price movements.
CleanSpark Stock Slides After Earnings Miss and Bitcoin Halving Pressure
CleanSpark (CLSK) led the sell-off, closing Thursday’s session down 19.13% before falling another 8.6% in after-hours trading to around $7.55. The decline followed the company’s earnings report for the quarter ended December 31, which came in below Wall Street expectations.
The company reported quarterly revenue of $181.2 million, missing analyst estimates of $186.66 million by nearly 3%. CleanSpark also posted a net loss of $378.7 million, a sharp reversal from the $246.8 million profit reported during the same period a year earlier.
Analysts pointed to reduced mining rewards following Bitcoin’s April 2024 halving as a major factor impacting profitability. Lower block rewards have tightened margins across the mining industry, reducing efficiency and limiting earnings potential during the quarter.
Despite the weak results, CleanSpark signaled a strategic shift beyond pure Bitcoin mining. Chief Financial Officer and President Gary Vecchiarelli said the company is positioning itself as a diversified digital infrastructure business, with artificial intelligence playing a growing role in long-term profitability. He emphasized that Bitcoin mining provides near-term cash flow, while AI infrastructure and digital asset management help optimize capital across market cycles.
IREN Misses Revenue Expectations as Mining Stocks Fall Across the Board
IREN Ltd also posted disappointing results, sending its shares sharply lower. The stock closed Thursday down 11.46% and dropped an additional 18.5% in after-hours trading to roughly $32.42.
The company reported quarterly revenue of $184.69 million, missing Wall Street expectations by more than 16%. IREN recorded a net loss of $155.4 million, compared to a net profit of $384.6 million in the same quarter last year. The results come as IREN continues shifting its business focus from Bitcoin mining toward AI infrastructure services.
The weakness wasn’t limited to IREN and CleanSpark. Other major crypto mining stocks also suffered heavy losses, with RIOT Platforms falling nearly 15% and MARA Holdings sliding more than 18% during Thursday’s session.
With Bitcoin now down roughly 29% over the past 30 days, sentiment across the crypto market has deteriorated rapidly. The Crypto Fear & Greed Index dropped to a score of 9 out of 100 on Friday, marking its lowest level since the Terra ecosystem collapse in mid-2022 and highlighting the depth of current investor anxiety.
