Why CleanSpark Stock Fell on Tuesday – Motley Fool

What happened

Shares of CleanSpark (NASDAQ:CLSK), a $250 million energy software company, fell on Tuesday. The stock fell as much as 15.1% in morning trading; as of 12:30 p.m. EDT, it was down about 13%.

The tech stock‘s decline followed its huge run-up over the last week, suggesting that Tuesday’s pullback likely represents shares taking a breather after some incredible gains.

A chalkboard sketch of a chart showing a stock price falling

Image source: Getty Images.

So what

Shares of CleanSpark had jumped about 30% on Monday, following news that the company was providing software on a new solar and battery storage project in Central America that uses Tesla‘s (NASDAQ:TSLA) commercial-grade Powerpack 2 batteries for an energy storage solution.

The company noted that this was the second microgrid located in Costa Rica that uses CleanSpark’s mPulse controller for a Tesla energy storage solution. Some investors may be speculating that this means CleanSpark will continue to partner with Tesla on other large commercial-grade energy storage deployments.

Shares are taking a bit of a breather on Tuesday, however. Still, the stock remains notably up a total of 30% over the last five days — even when including today’s decline.

Now what

CleanSpark’s Monday announcement bodes well for the attractive value proposition of the company’s patented mPulse controls, which provide market-based forecasting and operation. According to the company’s press release, its controller will enable “a means of reducing utility operating costs. This is accomplished by storing and/or shifting solar production through operation of the Tesla Powerpack ensuring consistent operation and resiliency.”

Source: https://www.fool.com/investing/2020/09/22/why-cleanspark-stock-fell-on-tuesday/

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