CLSK Stock: What Is Going on With Red-Hot CleanSpark Today?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips Here's what's behind today's impressive increase in investor interest around CleanS...
In the increasingly integrated crypto world, investors are looking for any indirect beneficiaries of the run in crypto prices to profit from this incredible bull market. Among the indirect plays in focus for investors are clean-energy-driven crypto-mining operations. In this light, CleanSpark (NASDAQ:CLSK) is gaining attention. Today, CLSK stock is up more than 7% amid mixed market action.
CleanSpark touts itself as an energy company looking to help solve modern energy challenges. Via advanced software, controls and microgrid solutions, CleanSpark services a range of customers. These include residential, commercial and grid communications users across a wide spectrum.
Indeed, given the recent surge in energy prices, such microgrid solutions are coming into focus for many investors. Accordingly, CleanSpark is a company that investors may rightly look to as an intriguing play on its own.
However, a recent crypto-related update has given retail investors another reason to buy into CLSK stock. Let’s dive into what speculators may be focusing on with this company right now.
CLSK Stock Moves Higher on Crypto Update
One of the key reasons many investors have bought into CLSK stock in a big way over the past year has been the company’s crypto exposure. The company’s wholly owned subsidiary, Foundry Digital, is a digital-asset mining and staking company. Earlier this week, these companies announced that CleanSpark has transitioned its Bitcoin (CCC:BTC-USD) mining power to the Foundry USA Pool. This power amounts to what the companies say is over one exhaust of sustainable Bitcoin mining power.
Indeed, given where CLSK stock was trading earlier this year, investors have reason to take a flyer on this speculative stock. CleanSpark saw its shares trade at more than $42 per share earlier this year. Now trading at less than $12 per share, today’s 7% increase seems muted in the broader context of where this stock has come from. That said, 7% is 7%.
Various crypto-mining-related bans, specifically out of China, have boosted the need for crypto-mining power domestically. CleanSpark appears to provide an intriguing option for investors bullish on U.S. crypto-mining capabilities in light of these recent geopolitical events. Accordingly, it’s possible CLSK stock could see increased interest from here.
That said, like all crypto-mining-related plays, CLSK carries more risk than the average investment. As investors have seen from the year-to-date decline on this stock, keeping exposure limited to what investors are comfortable with is important.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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