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CLSK Shelf Offering (Patreon)

Published:
2024-01-06 01:10:09
Imported:
2024-01
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This came out after the close. Hence the dip. 

A shelf offering is a type of public offering where a company can issue securities over a period of time, rather than all at once. This allows the company to have more flexibility in raising capital when market conditions are favorable.

The reason I bought CLSK today is they are adding 6-8 eh over the next 6-8 weeks going from 10 to 16 or 18. They have state of the art rigs. 

Now dilution is not bad when you put the money to work immediately as I have discussed with MSTR selling shares to buy BTC which has been a blindingly good strategy. 

If CLSK can gradually sell stock to buy new state of the art rigs it can help.... if they are doing it to line execs pockets it is bad. 

Either way, CLSK came out tops in my model yesterday and will track CLSK is my biggest miner position so we shall monitor.  Note SHELF OFFERING does not mean instant dilution but rather the option for gradual dilution. 


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Comments

Anonymous

Thought about this last night some more. This seems like the better option for Cleanspark rather than issuing debt or taking on a line of credit. This gives them flexibility to get access to capital when conditions are optimal in the market. If the price of bitcoin goes bonkers, which it could, they would have the ability to issue more shares to raise additional capital to either buy more equipment, or buy another mining operation that is failing if the opportunity exists. The result to us would be initially muted upward price action of our shares but an overall long-term benefit if they are choosing their opportunities wisely. We have to hope that the CEO and CFO are considering healthy growth options that ultimately help the growth trajectory. How did I do? Want to hear our camp director James’s opinion on all this!

Anonymous
>>126294613

Great assessment. But let me play devils advocate. Why now? It’s right at the start of the year, the price isn’t as low as it was months back, they’ve already been issuing a lot of shares over the last few years. I thought they’d be done by now and the cynical part of me is a bit concerned. If other miners are to fail (likely) and CleanSpark want to scoop them up, I thought selling their hodl position would be optimal since the price will rise by then. In other words, I thought all the focus would be on building their hodl position. Also, they missed their 2023 exehash target of 16. I know it’s meant to be coming, but still. If they end up issuing more shares I’ll be gravely concerned.

Anonymous

What we do know is that CLSK management has done a good job so far or they wouldn’t come out top on James’s compendium scores for miners. Hopefully 🙏 this is good news and shrewd forward planning. If BTC price rockets 🚀 away they can raise money for rigs etc by issuing shares at a higher price taking advantage of the bitcoin they produce.

Anonymous
>>126299155

And yes you could argue why not just sell the bitcoin but I would prefer they hold it as we all believe it will outperform Fiat so raising cash 💰 to plough into bitcoin is a no-brainer and Saylor-esque.