Nov. 26 at 2:18 AM
$CLSK ceo Sudden departure mid-year is a huge red flag — often signals internal turmoil or disagreement over strategy/debt.2Massive debt load — over
$1.8 billion-
$650M convertible notes due 2030 (0%) -
$1.15B convertible notes due 2032 (0%) issued after year-end -
$174.5M bitcoin-collateralized loans Interest is low/zero, but conversion prices are high → if stock crashes, these turn into crushing dilution or forced repayment.3Extreme dilution255.6 million shares outstanding (up ~100% in two years). They keep issuing stock via ATM offerings and will keep doing it. EPS gets destroyed even when bitcoin moons.4Still burning cash aggressivelyDespite “net income” of
$364K (mostly unrealized bitcoin gains), operating cash flow and capex are enormous. They are 100% dependent on raising more debt/equity or selling bitcoin to fund growth.