CleanSpark, Inc. (CLSK) is having a pretty good Monday. Shares jumped nearly 14% after JPMorgan decided the Bitcoin miner deserves a second look, upgrading it from Neutral to Overweight. The catalyst? A massive wave of high-performance computing deals that's making the case for Bitcoin miners to morph into data center operators look increasingly compelling.

Why Bitcoin Miners Are Suddenly Hot Property

Here's the thing: JPMorgan sees a fundamental shift happening. According to Investing.com, the investment bank pointed to a surge in long-term high-performance computing deals that's changing the economics for companies like CleanSpark. Since late September, deal activity has exploded, with sector leaders inking more than $19 billion in combined contracted revenue from cloud and colocation agreements.

That's real money backing a real trend. Bitcoin miners already have the infrastructure, power management expertise, and facility footprint. Pivoting to data centers isn't a wild leap—it's a logical evolution, especially when artificial intelligence workloads are eating up computing capacity faster than traditional data centers can build it.

The CleanSpark Angle

For CleanSpark specifically, JPMorgan's enthusiasm stems from the company's newly acquired Texas site, which brings roughly 200 megawatts of critical IT capacity to the table. That's substantial firepower in the data center world.

JPMorgan also updated its valuation models, cutting discount rates for cloud and colocation businesses. The result? They now value a megawatt of critical IT colocation capacity between $8 million and $17 million, with integrated cloud capacity worth up to $19 million per megawatt. Run those numbers against CleanSpark's Texas acquisition, and you start to see why the upgrade makes sense.

Technical Picture: Oversold and Climbing

From a technical standpoint, CleanSpark is still trading about 28.6% below its 50-day moving average of $15.73, suggesting this rally might be the beginning of a recovery after some rough months. The stock sits roughly 1.5% above its 200-day moving average of $11.07, which should provide support if the momentum fades.

With an RSI of 26.99, the stock had been firmly in oversold territory, which often precedes a bounce when positive catalysts arrive. The nearest support sits at $9.81, while the 52-week high of $23.61 represents psychological resistance if the rally continues.

At last check, CleanSpark shares were trading 13.94% higher at $11.08.