Core Scientific Upgraded to Buy From Neutral to Reflect HPC Expansion: B Riley

As a seasoned crypto investor with a keen interest in the digital mining industry, I have been closely monitoring Core Scientific (CORZ) and its strategic moves for quite some time now. The recent research report from B Riley, upgrading Core to a “buy” from “neutral” status and raising its price target to $13 from $0.50, caught my attention.

As an analyst, I believe that Core Scientific (CORZ) is poised to become a leading player in the high-performance computing (HPC) sector based on its lucrative deals with CoreWeave and the solid experience of its management team in operating enterprise data centers.

A brokerage firm has revised its recommendation for the Dover, Delaware company from “hold” to “buy,” and increased its predicted share price from $0.50 to $13. However, the stock was currently down 1.5% or $0.49 at $11.53 upon release of this information.

B Riley announced that it was revising its assessments for Core Scientific in light of the CoreWeave deal and potential future high-performance computing (HPC) accords. The company placed a total value of $2.3 billion on the already disclosed agreements, excluding the Austin contract’s commitment of 270 megawatts. This estimation does not account for possible extensions for both contracts.

Core has initiated its journey towards realizing economies of scope with this AI agreement, surpassing anticipations due to the financially advantageous arrangement. Specifically, CoreWeave will shoulder all expenses related to capital costs incurred during High Performance Computing (HPC) upgrades.