CleanSpark Stock Faces Steep Selloff as Short Interest Surges to Record High
Altcoin-exposed stocks continue to face strong selling pressure as investors shift decisively toward Bitcoin.
- 10x Research says altcoin-linked stocks remain high-risk, with Bitcoin strongly outperforming.
- CleanSpark plunged after its $1.15B notes offering sparked dilution fears despite a $460M buyback plan.
- Short interest hit 24.8%, while charts flagged CLSK now sitting on a crucial support zone highlighted by economist Donald Dean.
The rotation intensified in early November when 10x Research reiterated that altcoin markets had entered an unfavourable phase and reminded subscribers of “the only three rules that matter in altcoin trading.” Since then, the majority of altcoin-linked equities have remained below their 30-day moving averages, signalling persistent risk aversion.
CleanSpark (CLSK) — one of the most closely watched Bitcoin mining and high-performance computing companies — has been among the hardest hit. The stock has now logged a week-over-week decline of nearly 34%, reinforcing the broader performance gap between Bitcoin and the altcoin ecosystem.
Dilution Concerns Drive Aggressive Selling
The selling accelerated after the firm announced a $1 billion convertible senior notes offering, later raised to $1.15 billion following strong oversubscription from institutional buyers. While the participation demonstrated confidence in CleanSpark’s long-term positioning, shareholders immediately priced in dilution risk.
To counter investor anxiety, CleanSpark disclosed that $460 million of the proceeds would be allocated to repurchase approximately 10.9% of outstanding shares — a move intended to signal faith in its dual strategy of Bitcoin mining and AI-driven high-performance computing data centers. But the announcement did little to cool the selloff.
Adding fuel to the pressure, short interest in CLSK spiked to 24.8%, the highest among major U.S.-listed miners.
Technical Indicators Reflect Deep Momentum Shift
Charts also illustrate the scale of the downturn. According to 10x Research’s tactical indicator, CleanSpark sits below both the 7-day and 30-day moving averages — a double-bearish signal historically associated with further weakness in crypto-equity cycles.
Economist and market analyst Donald Dean recently highlighted the weekly chart showing CLSK testing the lower boundary of a long-term descending wedge and sitting directly on a major volume shelf that has repeatedly acted as support.
$CLSK CleanSpark – Zoom Out for Perspective – Weekly Chart
CleanSpark weekly chart showing price right at the volume shelf launch area in the descending wedge which has shown strong support.
CLSK Fast Facts:
-Shifting to AI/High Performance Computing
-P/E 12.74, P/S 5.6x, EPS… pic.twitter.com/Y9pWEMWEzo— Donald Dean (@donaldjdean) November 18, 2025
His targets — $17, $22, and $27 at ascending Fibonacci retracement levels — remain technically valid, but he acknowledged that the short-term direction hinges on whether buyers defend the current support area.
Momentum oscillators echo the caution:
- RSI has dropped into oversold territory, reflecting capitulation
- MACD continues sliding lower, with widening bearish momentum
- Spot price has returned to levels last defended in mid-2024
Bitcoin Continues to Outperform — Altcoin Exposure Viewed as High Risk
The decline in CLSK does not occur in isolation. 10x Research notes that its tactical altcoin indicator has favoured Bitcoin over altcoins for 55 consecutive days, marking the longest dominance streak since 2022. The current environment rewards lower-beta crypto exposure, and investors who once sought higher upside from altcoin-linked equities are now prioritizing stability.
Until sentiment toward risk improves, Bitcoin is expected to remain the preferred allocation. CleanSpark’s long-term fundamentals — including its AI data center expansion and Bitcoin mining scale — continue to attract institutional attention, but near-term price discovery is dominated by dilution fears and the surge in short positioning.
Bottom Line
CleanSpark still has a strong strategic direction and significant institutional interest, but the market has clearly chosen caution for now. Whether the current support zone holds — highlighted in Donald Dean’s weekly chart analysis — may determine if CLSK stabilizes or faces a new leg down.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
