CleanSpark Inc. (NASDAQ: CLSK) stock is slipping on Monday as the price of Bitcoin continues to drop, affecting many crypto-related stocks. This is happening even though several analysts have shared positive views on CleanSpark’s future plans, especially in artificial intelligence (AI) and high-performance computing.

Here’s what’s going on:

CleanSpark recently shared its fourth-quarter results. While the company showed solid growth compared to last year, it still posted a small loss. Revenue came in lower than what Wall Street expected, which disappointed some investors.

However, the company is making a big move into AI and high-performance computing. CleanSpark plans to convert some of its Bitcoin mining data centers—like its large 250-megawatt site in Sandersville, Georgia—into high-margin facilities for colocation services. These services rent out space and power to clients who need powerful computing capabilities, which are in high demand for AI workloads.

Analysts from firms like Chardan, H.C. Wainwright, and Needham are still optimistic. They’ve kept their Buy ratings on the stock, pointing to the potential for CleanSpark to earn hundreds of millions in recurring revenue if it secures long-term contracts for its new data centers.

Despite this promising outlook, CleanSpark’s stock remains tightly linked to the cryptocurrency market. Since the company mines Bitcoin and holds over $1 billion in BTC on its balance sheet, falling Bitcoin prices directly impact its earnings and asset values.

Bitcoin was trading around $84,500 on Monday, down about 1.5% for the day and 23% over the past month. This decline has been linked to global financial concerns like rising Japanese bond yields and over $600 million in recent crypto liquidations. Other major cryptocurrencies like Ethereum and Dogecoin are also trending lower.

As a result, investors are treating CleanSpark as a leveraged play on Bitcoin. When Bitcoin falls, mining stocks like CLSK usually drop faster because their profits are so closely tied to crypto prices. This explains why CLSK stock dropped 3.64% to $14.57 as of Monday afternoon.

CleanSpark is currently rated with a Momentum Score of 75.9 by Benzinga Edge—a system designed to help investors quickly identify stocks with strong or weak momentum.

If you’re thinking about investing in CleanSpark, you can buy shares through most brokerage platforms. Many allow you to buy fractional shares if you don’t want to purchase a full share. If you believe the stock will go down and want to bet against it, you’d need access to an options trading account or a broker that supports short selling. This could involve buying put options or selling call options.

In summary, while CleanSpark is laying the groundwork for a strong future in AI infrastructure, its current performance is still heavily influenced by Bitcoin’s price swings. Investors should keep an eye on both the crypto market and the company’s progress in shifting toward AI and high-performance computing services.