Shares of CleanSpark Inc (OTCMKTS:CLSK) are awfully interesting from an analytic standpoint at present. The company just released a shareholder update letter that contains a great deal of color and detail on how management is set to proceed, and we would recommend checking it out if you’re interested in some extra perspective on this stock.
According to the release, among other points, the company noted that “We closed a $5 million round of funding creating a solid financial foundation for growth in the coming year. This foundation has allowed us to expand our software team which in turn will allow us to release updated features to our mPulse and mVSO platforms to customers earlier than originally expected, more on our software updates is included below. This renewed financial stability has also allowed us to expand our team to create a more streamlined operations with a strong focus on revenue generation. We currently have 20 full time team members supporting our progress and we are continuing to identify top talent to add to our team. Funding closed December 31, 2018 and we began immediate deployment of the capital.”
CleanSpark Inc (OTCMKTS:CLSK) bills itself as a company that provides energy software and control technology in the United States.
The company offers an integrated distributed energy management control platform that provides energy generation with storage devices, as well as controls facility loads to provide energy security in real time to commercial, industrial, mining, defense, campus, and residential users.
It also provides turnkey microgrid implementation services, microgrid design and engineering, project development consulting, and solar photovoltaic installation and consulting. In addition, the company offers mPulse software suite, a modular platform that enables fine-grained control of a Microgrid; and microgrid value stream optimizer that provides a robust distributed energy and microgrid system modeling solution.
Further, it converts various materials, including municipal solid waste, municipal sewage sludge, food and cooking waste, petroleum sludge and oily wastes, animal manures, cellulosic and non-cellulosic biomass, energy crops, scrap tires, and coal into SynGas.
The company’s SynGas is used as clean, renewable, environmentally friendly, and warming fuel for power plants and motor vehicles; and as feedstock for the generation of di-methyl ether. The company was formerly known as Stratean Inc. and changed its name to CleanSpark, Inc. in November 2016. CleanSpark, Inc. was incorporated in 1987 and is based in Bountiful, Utah.
According to company materials, “CleanSpark provides advanced energy software and control technology that enables a plug-and-play enterprise solution to modern energy challenges. Our services consist of intelligent energy monitoring and controls, microgrid design and engineering, microgrid consulting services, and turn-key microgrid implementation services. CleanSpark’s software allows energy users to obtain resiliency and economic optimization. Our software is uniquely capable of enabling a microgrid to be scaled to the user’s specific needs and can be widely implemented across commercial, industrial, military and municipal deployment.”
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As noted above, CLSK just released a shareholder update letter. Recent action has seen 38% piled on for shareholders of the company during the trailing month. Moreover, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running nearly 250% above its longer-run average levels.
Traders should note this as important with the stock trading on a float that is tight at just 24.7M shares.
One other interesting point is the company’s move to align itself with the cannabis boom: “We have completed case-studies for the cannabis industry. We believe that the opportunity in the Cannabis market is unprecedented due to the high energy usage of these facilities in both the US and Canada. In many cases our solution is capable of virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility. The Cannabis market continues to grow at a rapid rate, and as a result the significant and growing energy demands of the industry also continue to increase. We are currently focusing our marketing efforts on the largest users in the Cannabis market, the agricultural (grow) facilities. In addition to cost savings, the loss of power can be extremely detrimental to an agricultural (grow) facility’s production, and an extended outage can even cause a full loss, especially when the facility is growing a medically-certified crop. Energy resiliency is critical for these operations. We believe our solution will find a strong foothold in the market as many solutions currently available to the market provide either resiliency or energy savings but very few provide both. We believe that CleanSpark is strongly positioned to capitalize on this growing opportunity in 2019 and hope to be able to announce our first contract soon.”
At this time, carrying a capital value in the market of $166.79M, CLSK has a significant war chest ($4.6M) of cash on the books, which compares with about $1.6M in total current liabilities. CLSK is pulling in trailing 12-month revenues of $823K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 1354.1%. This may be a very interesting story and we will look forward to updating it again soon. Sign-up for continuing coverage on shares of $CLSK stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $CLSK, either long or short, and we have not been compensated for this article.