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Why CleanSpark Stock Fell on Tuesday

By Daniel Sparks – Sep 22, 2020 at 1:24PM

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Shares were due for a breather after a massive run-up.

What happened

Shares of CleanSpark (CLSK -3.57%), 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 (TSLA 0.91%) 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."

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

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