Core Scientific (CORZ) has recently caught the attention of brokerage firm Canaccord, which initiated coverage of the bitcoin miner with a buy rating. According to a report released by Canaccord, Core Scientific is positioned to become a major player in the field of artificial intelligence (AI) hosting.
The report highlighted a significant contract that Core Scientific secured with hyperscaler CoreWeave in June. This deal is seen as a pivotal moment for the company, marking the first “mega deal” signed by a bitcoin miner to provide high-performance compute (HPC) data center hosting capacity. The partnership with CoreWeave is expected to have a transformative impact on Core Scientific’s business trajectory.
Canaccord’s analysts, led by Joseph Vafi, identified several positive drivers for Core Scientific’s stock. These include the potential for increased revenue in AI hosting, improved cash flow, and the possibility of further site acquisitions in the future. The brokerage firm set a price target of $16 for Core Scientific, citing the CoreWeave contract as a significant contributing factor to this valuation.
In addition to its AI hosting prospects, Core Scientific also stands to benefit from its bitcoin mining operations. The company still has approximately 230 megawatts (MW) of power available for mining activities, even after allocating nearly 500MW for AI hosting. This dual focus on both AI hosting and bitcoin mining positions Core Scientific for continued growth and diversification.
Overall, Canaccord’s coverage of Core Scientific underscores the company’s potential for expansion and success in the cryptocurrency and AI sectors. With a solid foundation in place and strategic partnerships driving its growth, Core Scientific is poised to make a significant impact in the evolving landscape of digital technologies.
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