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.
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."
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