Henderson, NV—Bradford Zachary, CEO and President of CleanSpark , Inc. (NASDAQ:CLSK), has sold his membership interest in BlueChip Advisors LLC for $80,000, according to a recent SEC filing. This transaction involved 12,000 shares of CleanSpark common stock, which were indirectly owned by BlueChip Advisors. The sale comes as CleanSpark's stock trades near $11.14, with analysts setting price targets ranging from $17 to $30.
Following the transaction, Zachary retains a direct ownership of 3,069,859 shares of CleanSpark common stock. Additionally, he holds 323,864 shares indirectly through ZRB Holdings Inc., where he is the sole shareholder. Zachary also maintains direct ownership of 500,000 shares of Series A Preferred stock in CleanSpark. According to InvestingPro data, the company currently maintains a strong financial position with a current ratio of 3.75, operating with moderate debt levels.
The sale of his interest in BlueChip Advisors marks a significant financial move for Zachary, who continues to hold a substantial stake in CleanSpark through various direct and indirect holdings. InvestingPro analysis reveals 13 additional key insights about CleanSpark's performance and prospects, available in the comprehensive Pro Research Report covering 1,400+ top US stocks.
In other recent news, CleanSpark, a Bitcoin mining company, announced the pricing of a private offering of $550 million in convertible bonds (CBs) with a 0% interest rate, maturing in June 2030. The initial conversion price for these bonds is set at $14.80, which is a 20% premium over the stock's last closing price. The company plans to allocate approximately $76.5 million of the net proceeds to fund capped call transactions and use up to $145 million for the repurchase of its common stock directly from the purchasers of the CBs. The remaining proceeds from this offering are slated to fully repay the amounts outstanding under its line of credit with the cryptocurrency exchange Coinbase (NASDAQ:COIN).
In a related development, JPMorgan has upgraded CleanSpark's stock from Neutral to Overweight and increased the price target to $17 from the previous $10.50. This reflects CleanSpark's significant role in the Bitcoin mining industry, where it currently operates at over 30 EH/s, positioning it among the top three largest publicly listed miners by hashrate.
Meanwhile, Microstrategy (NASDAQ:MSTR) and other companies with significant cryptocurrency exposure have experienced a downturn in trading due to the recent cooling off in the crypto market. The broader sector reacted to the Federal Reserve's recent signals of interest rate caution and a significant pullback in Bitcoin's value from its record highs. This shift in investor sentiment was highlighted by a record outflow of $680 million from a group of US exchange-traded funds investing directly in Bitcoin. The implications for companies like Microstrategy and CleanSpark are yet to be fully realized as market participants assess the potential for further interest rate hikes and their impact on speculative investments.
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