Core Scientific, a bitcoin mining company, has received a buy rating and a $19 price target from Jefferies, a prominent research firm. According to the report, the company is in a prime position to benefit from the increasing demand from artificial intelligence (AI) companies. The company’s mining operations are not only profitable but also becoming more efficient over time.
Jefferies analysts Jonathan Petersen and Jan Aygul highlighted Core Scientific’s large power supply and strong data center development team as key factors that set the company apart in the industry. The recent 12-year AI contract signed with hyperscaler CoreWeave in June was described as a significant milestone for the company. This deal is expected to attract other hyperscalers to Core Scientific, with further announcements anticipated by the end of the year.
While future AI deals may not offer the same economic benefits as the CoreWeave lease, Jefferies believes they will still be highly accretive for Core Scientific. The company’s bitcoin mining business is projected to remain profitable, with plans to maintain a stable number of ASIC miners and periodically refresh the fleet.
Overall, Core Scientific’s strategic positioning and strong performance in both bitcoin mining and AI contracts have garnered positive attention from analysts and investors alike. As the company continues to expand its operations and attract new tenants, it is poised to capitalize on the growing demand for AI technologies.
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