Investing in innovative technology involves risks, but the rewards can be outstanding. One of the more interesting tech innovators today is CleanSpark (NASDAQ:CLSK), and CLSK stock offers the prospect of robust gains for forward-thinking investors.
The company is known for providing what’s known as micro-grids. If you don’t know about micro-grids, that’s perfectly okay as I will explain the basics without delving too deeply into scientific aspects.
Even beyond that, there’s a cryptocurrency connection that should spark some interest in CLSK stock among blockchain enthusiasts.
Ready to delve into an under-the-radar, tech-forward name with sizable upside potential? Stick with me as we begin with an analysis of the stock’s recent price movements.
CLSK Stock at a Glance
Over the past year, CLSK stock has truly come a long way. If you can believe it, there was a point in April 2020 when the share price fell to 97 cents.
That was troubling as the stock was in a bear market with seemingly no relief. Yet, this turned out to be a spectacular buying opportunity as the share price rocketed much higher in the ensuing months.
In August 2020, CLSK stock touched the $12 level, which already represented a powerful comeback.
That was only the beginning, however, as the share price catapulted to a 52-week high of $42.60 on January 7, 2021.
Fast-forward to midday on March 12, and the stock traded at $30 and change. Thus, there was a moderate retracement in the share price, which means that prospective investors may be able to take a position at a reduced price point.
One final point to make about CLSK stock: it has a five-year monthly beta of 3.52. In other words, it’s a fast mover, so please be sure to keep your position size moderate with this stock.
Exploring Micro-Grid Tech
So, let’s talk about micro-grids. What are they, and why would anybody choose to invest in them?
It has been proposed that the “macro-grid” technology that facilitates today’s electricity generation has become outdated because it’s inefficient and not properly tech-enhanced.
Along comes a solution: micro-grid technology. CleanSpark defines a micro-grid as “a set of resources and storage (batteries) used to provide a source of energy distributed from a central utility provider.”
According to CleanSpark, there are a number of benefits to micro-grids:
- Can disconnect from the traditional grid as conditions dictate
- Alternative to utility shutdowns in fire- and disaster-prone areas
- Able to support/replace the currently aging U.S. infrastructure
- Increases efficiency
- Offers cost savings
The company states that the total micro-grid capacity is projected to increase from 3.5 gigawatts to 30 gigawatts over the next decade.
Moreover, the compound annual growth rate (CAGR) of the global micro-grid market is expected to be 28%, reaching a value of nearly $40 billion, from 2020 to 2029.
And, CleanSpark provides energy modeling software for micro-grids, called mVSO. The company also offers micro-grid controller software known as mPulse.
The Crypto Connection
As you can see, CleanSpark is ambitious in its pursuit of next-generation technologies.
Besides, the company is not solely engaged in the micro-grid software niche. In fact, CleanSpark is also a serious competitor in the Bitcoin (CCC:BTC-USD) mining space.
In the first half of March, CleanSpark provided two updates on its Bitcoin mining operations:
- March 2: CleanSpark secured for delivery 2,500 ASIC mining rigs, which “are expected to be delivered and immediately deployed throughout June and July 2021.” These rigs are estimated to provide a Bitcoin mining hash rate capacity of 218 petahash per second.
- March 9: The company announced an additional purchase of 1,150 new miners, scheduled for delivery in June 2021, and capable of producing 100 petahash per second.
That’s some major hash power, to say the least.
CleanSpark’s stated goal is “to operate the lowest-energy-cost Bitcoin mining facilities at scale in the nation.” At the very least, we can say with confidence that the company will pose a real competitive threat in this regard.
So, now you have a primer on micro-grid technology. It’s the type of innovation that could offer excellent returns to early investors.
CleanSpark provides software that could be crucial to the build-out of micro-grid technology. Moreover, the company is heavily involved in Bitcoin mining.
Furthermore, CLSK stock isn’t particularly expensive. Therefore, there’s a strong argument in favor of a moderately sized buy-and-hold position in the shares.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.