2024-02-08 07:22:52 ET
Bitcoin miner stock CleanSpark, Inc. (NASDAQ:CLSK) is of interest to investors now. The stock, up 14.66% in the past five days, has been boosted by favourable stock market news this week. Technical indicators reinforce a building bullish momentum.
On price dynamics, CleanSpark is down 14.43% YTD. This should be interpreted as a correction for the stock as it has registered 172.22% gains in the past year. Simply put, the latest increases in CleanSpark are a continuation of last year’s gains.
CleanSpark is an American Bitcoin mining company. The company owns and operates multiple data centres, utilising low-carbon power. These stocks are known to gain when Bitcoin prices rise, leading to higher mining revenues. The stocks of mining companies saw an impressive 2023 amid a flurry of market expectations. That included stabilising Bitcoin prices, spot ETF approvals , and Bitcoin halving.
CleanSpark rose in 2023, backed by market fundamentals. The stock finds itself at the right hand of bulls after announcing plans to acquire four mining facilities. The facilities include three “turnkey” sites in Mississippi for $19.8 million. Another facility will be acquired in Dalton, Georgia, for $3.4 million.
The acquisitions are part of CleanSpark’s move to expand its data centre portfolio and operations. The developments occur amid the growing consolidation of Bitcoin miners. Smaller miners are combining resources, with upcoming halving expected to reduce their rewards by half.
Consequently, the acquisitions by CleanSpark have set the right tone in the stock market. This year, a projected strengthening of Bitcoin price is also a favourable catalyst for CleanSpark stock.
CleanSpark clears resistance at $8
CleanSpark’s price chart shows the momentum has turned bullish after recent gains. The stock crossed a resistance area at $8, indicating buyers are likely to take the price to the next level. The next resistance of interest for the stock is between $10 and $11.
Will CleanSpark maintain gains?
CleanSpark might sustain the current gains after the stock clears off a crucial resistance at $8. As the company’s fundamentals grow and BTC price increases, CLSK might be one of the best crypto stocks in 2024. The stock has to clear $11 to witness further surges.
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