CleanSpark, Inc. (CLSK) May Have Misled Investors About its Related Party Transactions and its Customer and Contract Figures
On December 31, 2020, CleanSpark issued a press release touting its achievements and “a number of significant wins for the Company.” As for outlook, the Company “forecast[ed] that our second and third fiscal quarters will again be our strongest” and projected it would “generate $20 million in revenue related to our current business segments and we expect the recent acquisition of ATL Data Center to contribute a minimum of $10 million in additional Bitcoin-based (BTC-USD) revenues for 2021.”
On January 14, 2021, Culper Research published a report alleging that CleanSpark had “fabricated key elements of its business, including purported customers and contracts” and that it is “rife with undisclosed related party transactions.” Specifically, the report alleged that the acquisition of ATL Data Centers, LLC “is another Gutless Promotion Attempt” and that the Company’s acquisition of p2k Labs was “an undisclosed related party transaction that apparently fabricated its customers.” On this news, the Company’s share price fell $3.63, or 9%, to close at $35.71 per share on January 14, 2021. The stock now trades at just around $16.00.
CleanSpark, Inc. (CLSK) Shareholders Have Options
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.