What happened

Shares of CleanSpark (CLSK 5.95%) have popped today, up by 11% as of 12:45 p.m. EDT, after the company announced a new development agreement with International Land Alliance (ILAL). CleanSpark will help power over 400 residential resort properties.

So what

CleanSpark said that International Land Alliance will utilize its microgrid software to provide sustainable energy solutions to ILAL's portfolio of properties that will be constructed in Mexico over the next three years, including 252 off-grid cabins in the Valle Divino development in Ensenada, Baja, Mexico, as well as another 152 luxury villas in the company's Plaza Bajamar project.

A beach with pale sand and two chaises set up under a thatched umbrella

Image source: Getty Images.

The partnership also includes handling microgrid power for commercial facilities within the developments, such as restaurants or other retail locations. The microgrid installations will operate using CleanSpark's mPulse platform under a long-term software license agreement.

"This phase is a significant milestone under our exclusive agreement with ILAL," CleanSpark CEO Zachary Bradford said in a statement. "International has master-planned a beautiful project in Ensenada, Baja Mexico, located just 45 minutes south of San Diego, California."

Now what

A couple of the residential villas are nearing completion and commissioning those projects is expected to occur in the third quarter. The installations will be critical in helping ILAL provide affordable housing that is also environmentally friendly, particularly as the area does not have a reliable power grid.

CleanSpark did not provide specific details regarding the financial implications, but Bradford added, "These residential projects collectively represent significant revenue development for CleanSpark."