CleanSpark Inc. (CLSK) is having a rough Monday, and the culprit is familiar: Bitcoin (BTC) is sliding again, and when Bitcoin sneezes, crypto miners catch a cold. The stock dropped over 3% Monday afternoon as the cryptocurrency traded near $84,500, down about 1.5% on the day and roughly 23% over the past month.

Here's the twist, though. CleanSpark just spent the past week talking up its pivot toward artificial intelligence and high-performance computing infrastructure—a move that earned Buy ratings from analysts at Chardan, H.C. Wainwright, and Needham. Those analysts are excited about the company's plans to transform mining facilities into AI colocation campuses, with projections pointing to multibillion-dollar potential and hundreds of millions in recurring revenue once long-term leases get signed.

The Bitcoin Problem

So why isn't the stock rallying on that AI narrative? Because CleanSpark operates large-scale Bitcoin mining facilities and holds more than $1 billion worth of BTC on its balance sheet. When Bitcoin drops, it hits the company from two angles: mining profitability takes a hit, and the value of those holdings shrinks. Investors treat crypto miners as leveraged plays on Bitcoin itself, which means on days like today, the AI story takes a backseat to what Bitcoin is doing.

The broader crypto market isn't helping matters. Bitcoin's recent pullback has been blamed partly on rising Japanese government bond yields and a wave of liquidations that wiped out more than $600 million in positions. Major tokens from Ethereum to Dogecoin are also trading in the red, adding to the negative sentiment washing over crypto-linked stocks.

The AI Opportunity

Last week's fourth-quarter earnings showed strong year-over-year growth, though CleanSpark reported a small loss and revenue that fell short of Wall Street's expectations. What caught analysts' attention was management's strategic pivot toward high-performance computing and AI infrastructure. The company outlined plans to repurpose data centers—including its massive 250-megawatt facility in Sandersville, Georgia—into high-margin colocation campuses designed to serve AI workloads.

That's the long-term story analysts are betting on. But for now, CleanSpark's stock price remains handcuffed to Bitcoin's daily moves. It's a reminder that even when companies try to diversify their revenue streams and pivot toward hot new markets, legacy business models have a way of dominating investor sentiment—especially when crypto is in a rough patch.

What the Data Shows

According to market data, CleanSpark has a Momentum Score of 75.9, part of a set of metrics designed to help investors identify stocks with strong or weak near-term price trends. That momentum reading suggests the stock still has some technical strength despite Monday's selloff.

CleanSpark shares were trading at $14.57 at the time of publication Monday, down 3.64% on the session. The question for investors is whether the AI infrastructure story can eventually decouple the stock from Bitcoin's volatility—or whether CleanSpark will remain a crypto proxy for the foreseeable future.