Shares of CleanSpark Inc. CLSK, -10.49% sank 9.3% in afternoon trading Thursday, putting them on track for a fifth-straight loss. The energy software and control technology company said it “has become aware” of a short seller’s report that made “false” accusations against it and its officers. The five-day losing streak, in which the stock tumbled 34.7%, started on Jan. 14, the same day Culper Research released a report saying it believed CleanSpark is an “insider enrichment scheme,” that allegedly “vastly overstated or simply fabricated key elements of its business.” CleanSpark said it retained a law firm and will be “vigilant” in investigating the sources of the misrepresentations. “CleanSpark takes seriously any accusations of impropriety, stands behind its prior statements and disclosures, and will not tolerate unfounded and reckless claims against the company,” CleanSpark said in a statement. “The company will vigorously and relentlessly defend itself against these actions and against the kind of baseless accusations made by those behind the ‘report.'” Despite the recent selloff, CleanSpark shares have soared 189.3% over the past three months, while the S&P 500 SPX, +0.16% has gained 12.3%.
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