CleanSpark Inc (NASDAQ:CLSK) shares jumped on Thursday as the company revealed it was teaming up with power provider Bay Area Energy Solutions to develop a microgrid solution for a luxury residential estate in California.
This first contract, hoped to be one of many, is to provide an off-grid solution for a 14,000 square foot (sq ft) estate, which is currently being built.
Once completed, residences will be run using on-site generation, solar, and storage managed by CleanSpark's mPulse controller, which will mean independence from grid disruptions (not uncommon in California) like wildfires and public safety grid shutdowns.
"Properties of this size often require significant power for one or more building structures and can even include business operations on site," said the energy solutions provider in a statement.
"There are thousands of homes greater than 10,000 square feet in the state of California alone, where incentives and tax benefits, along with well-documented utility challenges support the implementation of new, renewable, and resilient energy sources. CleanSpark expects to develop a significant pipeline of projects within this sector," added the company.
CEO Zach Bradford told investors: "CleanSpark's proprietary mPulse system, paired with solar, storage, and generators will provide complete resiliency as well as significant cost savings. It will also allow their microgrid to be 'future-proof' should they wish to add additional solar or other resources at a later date."
Amer Tadayon, the chief revenue officer (CRO) of CleanSpark, added: "We are seeing increasing investments being made by estate homeowners integrating sustainable energy technology into construction projects of this magnitude, and we believe this trend will continue.
"This is the first foray directly into this market segment for CleanSpark. With our development partners, we can help solve critical energy and resiliency challenges for these types of residences."
Shares in CleanSpark in New York added nearly 15% to stand at US$40.59 each.
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