CleanSpark Stock Jumps After JPMorgan Upgrade — Here's What Sparked The Move

CleanSpark, Inc. (NASDAQ:CLSK) shares are trading higher on Monday after JPMorgan upgraded the stock from a Neutral rating to an Overweight rating.

• CLSK is surging to new heights today. Get the scoop here.

What To Know: JPMorgan said a surge in long-term high-performance computing deals is strengthening the case for Bitcoin miners to transition into data-center operators, according to Investing.com.

The analyst firm noted that deal activity across the sector has accelerated since late September, with some of the leaders in the space signing more than $19 billion in combined contracted revenue tied to long-duration cloud and colocation agreements.

For CleanSpark, the upgrade reflects increased optimism following the roughly 200 megawatts of critical IT capacity at its newly acquired Texas site. JPMorgan also increased its valuation estimates for high-performance computing capacity after cutting discount rates in its cloud and colocation models, now valuing a megawatt of critical IT colocation capacity at $8 million to $17 million and integrated cloud capacity at up to $19 million.

CLSK Analysis: CleanSpark is trading approximately 28.6% below its 50-day moving average of $15.73, suggesting that it may be experiencing a short-term recovery after a period of underperformance. The stock is trading approximately 1.5% above its 200-day moving average of $11.07, which could act as a critical support level in the event of a pullback. With an RSI of 26.99, the stock is in oversold territory, indicating potential for further upward momentum if buying interest continues.

The nearest support level is established at $9.81, while the absence of a defined resistance level suggests that the stock could face minimal barriers to further gains. The psychological resistance level may be found near the 52-week high of $23.61, which could attract attention as the stock attempts to regain lost ground.

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CLSK Price Action: At the time of writing, CleanSpark shares are trading 13.94% higher at $11.08, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.