What happened

Shares of CleanSpark (NASDAQ: CLSK) plunged on Thursday, likely because the price of bitcoin continues to fall. However, the company did announce progress on one of its energy projects today. As of 1:40 p.m. EST, the stock was down 11%.

So what

CleanSpark's primary business focus is software related to microgrids -- small-scale, off-grid electricity projects. The company has partnered with a housing development company in planning 2,000 future units in Mexico. But it all starts with the model home. Today, the company announced that designs for this single-family residence have been completed, and CleanSpark will be putting in the microgrid technology over the next 30 days.

Image source: Getty Images.

Now what

Getting closer to deploying its technology for the model home is good news CleanSpark. However, since the company has started to mine bitcoin (to demonstrate the effectiveness of its energy management software), this part of the business has stolen the spotlight -- and for good reason. Since it acquired its bitcoin-mining business on Dec. 10, it's generated $1.6 million in bitcoin revenue. For perspective, it only generated $10 million in revenue for all of 2020.

Besides bitcoin-mining revenue making up an outsized percentage of its total revenue, CleanSpark is also holding 31 bitcoin tokens as of Jan. 19. Therefore, when the price of bitcoin falls, so does the value of CleanSpark's holdings. And over the past 24 hours, bitcoin has fallen 8.5%, according to CoinDesk.

Some may have invested in CleanSpark for its technology software. However, like it or not, investors will have to accept that the company's stock will be tied to bitcoin until the energy portion of its business starts pulling its weight.

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Jon Quast has no position in any of the stocks mentioned. Jon Quast owns bitcoin tokens. The Motley Fool has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool has a disclosure policy.