CleanSpark Stock Drops 10% As Snowstorm Risk And $45M CEO Pay Disclose

TLDR

Table of Contents

CleanSpark shares drop 10% due to power outage risks and CEO pay disclosure.
CEO compensation of $45M sparks concern as CleanSpark faces margin pressures.
Tennessee winter storm affects CleanSpark’s exposure to power outage risks.
CleanSpark’s CEO received $44.9M for fiscal 2025, alarming investors.

Shares of CleanSpark (NASDAQ: CLSK) fell by more than 10% on Monday, underperforming its bitcoin-mining peers. Investors reacted to two primary factors: regional power outages in Tennessee due to a winter storm and the disclosure of a substantial compensation package for CEO Matthew Schultz. These developments raised concerns about the company’s operations and governance.

Power Outage Risks and Tennessee Exposure

One of the key reasons behind the drop in CleanSpark’s stock was the concern over power outages caused by the severe winter storm that hit Tennessee. The storm left about 250,000 Tennessee customers without power, prompting fears about grid stability. Despite CleanSpark’s east Tennessee sites being located in grid “green zones,” typically protected from forced curtailments, the broader state-level power outage risk appeared to spook investors.

$CLSK steep fall -9% today. Couple reasons:
1) Weather Impact: CLSK has the most Tennessee exposure (via GRIID acquisition) among public miners. While their specific sites (East TN) are actually in grid "Green Zones" with power, the market appears to be aggressively pricing in… pic.twitter.com/Pggt1XjKNB
— matthew sigel, recovering CFA (@matthew_sigel) January 26, 2026

Matthew Sigel, Head of Digital Assets Research at VanEck, noted that investors seemed to be reacting to this uncertainty. While CleanSpark’s Tennessee sites were less likely to experience direct impacts from the outages, the market still priced in potential risks from grid disruptions. These concerns were further amplified by the timing of the storm, which also caused delays in crypto-related regulatory events.

CEO Compensation Package Raises Investor Concerns

Another factor contributing to the decline in CleanSpark’s stock was the recent disclosure of CEO Matthew Schultz’s compensation package. According to the company’s proxy filing, Schultz received a total compensation of approximately $44.9 million for fiscal 2025. A large portion of this compensation came from equity awards and incentive bonuses.

This amount is significant, considering that it represents roughly 6% of CleanSpark’s total reported revenue for the period. For some investors, this figure raised concerns about the company’s governance and the potential for shareholder dilution, especially as the company navigates margin pressures and a strategic pivot toward high-performance computing and AI infrastructure. Investors questioned whether such a high compensation figure was justified at a time when CleanSpark was facing increasing operational costs.

Volatile Market Conditions Add to the Pressure

The slide in CleanSpark’s stock also reflected broader market conditions for bitcoin miners. Bitcoin’s recent pullback, combined with growing scrutiny of miners’ cost structures and governance practices, added to the downward pressure on the stock. The 10% decline marked a continuation of a volatile January for the company, which had already faced challenges due to fluctuating cryptocurrency prices and rising concerns about its financial health.

In addition, the CEO’s compensation package became a focal point for investors, particularly as CleanSpark continues to adjust its business model. The company is pivoting towards high-performance computing and AI infrastructure, which requires significant capital investments. As investors assess the company’s long-term strategy, concerns about executive compensation and operational risks remain central to the ongoing discussion.

CleanSpark Faces Key Decisions Amid Challenges

The combination of weather-related risks, such as power outages, and the substantial CEO compensation package has placed CleanSpark under the investor microscope. While the company’s Tennessee sites are designed to be insulated from grid issues, the broader implications of winter storm risks cannot be ignored.

Similarly, the CEO’s high compensation raises questions about CleanSpark’s governance practices at a time when investors are closely watching the company’s transition toward new business models.

As CleanSpark navigates these challenges, the company will need to address investor concerns and show that its strategic shifts are viable. In the face of such volatility, shareholders will likely continue to scrutinize both operational risks and executive compensation closely.