Canaccord initiated coverage of Core Scientific with a buy rating.The bitcoin miner is on the cusp of becoming a major player in AI hosting, the report said.The broker noted that Core Scientific has potential upside from its mining business.
As a seasoned research analyst with over two decades of experience under my belt, I have seen the rapid evolution of the tech industry and its subsectors. The recent move by Canaccord to initiate coverage of Core Scientific with a buy rating has piqued my interest.According to a recent report by broker Canaccord, Core Scientific (CORZ) is poised to make a significant impact in the field of artificial intelligence (AI) data hosting. This assessment comes as they begin their coverage of the bitcoin (BTC) mining company.

Initially, Canaccord Genuity assigned a ‘Buy’ recommendation and set a target price of $16 for the cryptocurrency mining company. At the opening market, the stocks had climbed by 1.4%, reaching $12.15.

According to Canaccord, the 12-year agreement that the company entered with CoreWeave in June represents a significant shift. They consider it as the first “pioneering ‘mega deal,'” marking a milestone for bitcoin miners, which provides them with large-scale capacity for high-performance compute (HPC) data center hosting.

A hyperscaler refers to a massive data center that focuses on providing immense computational resources in great quantities.

According to analysts led by Joseph Vafi, Canaccord Genuity Group has found three key factors that could boost the company’s stocks:

The price target comprises about $12 for the CoreWeave contract, $3 for the company’s remaining power supply that has been selected for AI hosting and around $1 for the bitcoin-mining business.
The business additionally stands to gain benefits through mining activities. Remarkably, it retains approximately 230 megawatts (MW) of power, which could be utilized for bitcoin mining operations, despite redirecting nearly 500MW towards artificial intelligence (AI) hosting, as the report pointed out.

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2024-09-23 13:38