We recently compiled a list of the 12 Best Most Active Stocks to Buy Now. In this article, we are going to take a look at where CleanSpark, Inc. (NASDAQ:CLSK) stands against the other active stocks.
Active investing involves the continuous buying and selling of stocks, aiming to outperform the market through strategic decisions based on market conditions, company performance, and economic indicators. This approach contrasts with passive investing, which typically involves holding a diversified portfolio over the long term. Engaging in active stock investment offers several potential benefits for investors, including the possibility of higher returns, effective risk management, and the ability to capitalize on short-term market opportunities. Active investors strive to exceed average market returns by identifying and investing in stocks poised for significant growth. Historical data supports the potential of this approach. For instance, a podcast highlighted by the Financial Times reveals that certain companies have delivered extraordinary long-term returns. Altria Group, formerly known as Philip Morris, achieved a staggering 265 million percent return over a century. Similarly, Vulcan Materials and Kansas City Southern provided returns of 39 million percent and 36 million percent, respectively.
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Active investing allows for dynamic risk management by enabling investors to adjust their portfolios in response to changing market conditions. This flexibility is particularly advantageous during periods of market volatility or economic downturns. For example, during the 2008 financial crisis, active investors had the opportunity to reduce exposure to the financial sector, potentially mitigating losses. By continuously monitoring investments and reallocating assets as needed, active investors can align their portfolios with their risk tolerance and market outlook. The stock market often presents short-term opportunities that active investors can exploit for profit. Strategies such as swing trading involve holding positions for a few days to a couple of weeks to benefit from expected price movements. This approach requires diligent analysis and timely decision-making but can lead to gains that passive strategies might miss.
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We sifted through Yahoo Finance’s list of the most active stocks that are experiencing high trading volumes. We looked at the top 15 stocks to find the ones that were the most popular among elite hedge funds. We then narrowed down our list to the 12 stocks with high trading volumes and those that were the most popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A hall of server racks, illuminated by blue LED lights and humming with energy.
CleanSpark, Inc. (NASDAQ:CLSK)
Number of Hedge Fund Holders: 25
Average Volume: 23.18 million
CleanSpark, Inc. (NASDAQ:CLSK) operates as a bitcoin miner in the Americas, owning and operating data centers that primarily run on low-carbon power. In the first fiscal quarter of 2025, quarterly revenues were $162.3 million, an increase of $88.5 million, or 120%, from $73.8 million for the same prior fiscal quarter. In February, the company released its unaudited bitcoin mining and operations update for January 2025. The firm crossed the 40 EH/s milestone, achieved more than 10,500 bitcoins held in treasury, and celebrated the five-year anniversary of the uplisting on Nasdaq. Zach Bradford, CEO and President of CleanSpark, Inc. (NASDAQ:CLSK), stated that the entire team is focused on executing the path to 50 EH/s and building on the top three positions across the operating hash rate, the marginal cost per coin, fleet efficiency, bitcoin held, and total uptime.
Overall CLSK ranks 11th on our list of the most active stocks to buy now. While we acknowledge the potential of CLSK as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than CLSK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.