CleanSpark, Inc. (NASDAQ:CLSK) is experiencing a notable uptick in its stock price on Monday following an upgrade from JPMorgan. The financial institution moved its rating from Neutral to Overweight, citing a favorable shift in the market dynamics for Bitcoin miners transitioning to data-center operations. This optimism is fueled by a growing number of long-term high-performance computing deals, particularly as data-center operators ramp up their activities.
Since late September, deal activity within the sector has surged, with some prominent players securing more than $19 billion in combined contracted revenue through long-duration cloud and colocation agreements. For CleanSpark, the upgrade is seen as a positive affirmation of its recent moves, especially regarding the approximately 200 megawatts of critical IT capacity at its newly acquired site in Texas.
In adjusting its outlook, JPMorgan raised its valuation estimates for high-performance computing capacity. The firm reduced discount rates in its cloud and colocation models, now estimating that a megawatt of critical IT colocation capacity could be valued between $8 million and $17 million, while integrated cloud capacity may reach up to $19 million.
From a technical perspective, CleanSpark’s stock is trading about 28.6% lower than its 50-day moving average of $15.73, suggesting a potential rebound following recent underperformance. Currently, the stock is positioned approximately 1.5% above the 200-day moving average of $11.07, which might serve as significant support should it experience any downturns. The Relative Strength Index (RSI) stands at 26.99, indicating that the stock is in oversold territory and may garner increased interest if buying momentum persists.
The nearest support level is pegged at $9.81, and with a lack of defined resistance points, there appears to be little hindrance preventing the stock from making further gains. The psychological resistance is likely close to the 52-week high of $23.61, which could draw investor attention as CleanSpark strives to recover its previous valuations.
As of the latest updates, shares of CleanSpark have risen by 13.94%, trading at approximately $11.08, according to data compiled from Benzinga Pro.
