Why Bitcoin-Related Stock CleanSpark Is Exploding Higher

CleanSpark Inc CLSK shares are trading higher by 17.7% to $5.01 Tuesday morning. Shares of crypto-related stocks are trading higher after Bitcoin reached $35,000 for the first time since 2022.

Bitcoin's strong performance is attributed in part to the optimistic outlook for a spot ETF. Major financial institutions like BlackRock and Fidelity have adjusted their ETF applications, and Grayscale has taken steps to list its Bitcoin Trust shares on NYSE Arca, indicating their desire to transform the trust into a spot Bitcoin ETF.

Why This Matters To CleanSpark Investors

CleanSpark is involved in cryptocurrency mining, which means they use their microgrid technology to optimize the energy usage and efficiency of mining operations. When Bitcoin's price rises, it becomes more profitable to mine, leading to increased demand for mining services.

This can positively affect CleanSpark's business as more miners may seek their solutions to improve profitability.

See Also: What's Going On With AT&T Shares

The anticipation of a potential Bitcoin ETF is significant because it suggests greater institutional interest and acceptance of cryptocurrencies. If such ETFs were to be approved, it could attract more institutional and retail investors to the cryptocurrency market, potentially increasing demand for CleanSpark's services as more people enter the market.

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According to data from Benzinga Pro, CleanSpark has a 52-week high of $7.60 and a 52-week low of $1.74.