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On July 18, 2024
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Core Scientific Analyst Emphasizes 'Access To Power' In Bitcoin Mining Assets - Deal With CoreWeave Under Focus - Core Scientific (NASDAQ:CORZ)
Long term - the analyst sees the potential for shares to be multiples higher than the current price target. Cantor Fitzgerald analyst Brett Knoblauch initiated coverage on Core Scientific, Inc. CORZ, with a price forecast of $20. According to the analyst, Bitcoin miners currently have one of the most coveted assets in the world - access to power. In June 2024, Core Scientific announced a deal with CoreWeave (private), following which shares went up meaningfully. With CoreWeave, Core Scientific was the first Bitcoin miner to sign a meaningful AI/HPC deal. In what has now been extended, CoreWeave will lease 270 MW from Core Scientific for 12 years, and pay the company a total of $4.725 billion over that duration, amounting to ~$1.45 million per MW. Also Read: Block and Core Scientific Enter Supply Agreement for Mining ASICs What is most differentiated about this deal that other miners will not be able to replicate is the fact that CoreWeave will fund the entire capex buildout itself (~$1.3 billion). Per the analyst, this is effectively an interest-free loan for CoreWeave, which can use the annuity like revenue stream to fund additional capacity expansion, and to potentially lever up the business to maximize equity returns. Core Scientific has earmarked an additional 322 MW for AI/HPC, which could generate an additional $335 million in annual revenue and $268 million in annual profits. Long term - the analyst sees the potential for shares to be multiples higher than the current price target. Price Action: CORZ shares are trading lower by 5.17% to $11.10 at last check Wednesday. Image via Shutterstock Read Next: NIO Advances Vehicle Safety With AI-Enhanced Automatic Emergency Braking And Navigation Features In Latest Update Market News and Data brought to you by Benzinga APIs
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Core Scientific shares rise on new Overweight rating By Investing.com
On Wednesday, Core Scientific Inc. (NASDAQ: CORZ) received a new Overweight rating from Cantor Fitzgerald, accompanied by a $20.00 price target. The firm highlighted Core Scientific's strategic shift following its June 3, 2024, partnership with CoreWeave, emphasizing the transformational impact of the deal on the Bitcoin mining industry. The Cantor Fitzgerald analysis pointed out that Bitcoin miners are in possession of a highly sought-after resource: access to power. The firm underscored the increasing demand for energy by large entities, particularly for powering GPUs in the context of rising AI investments. Core Scientific's recent deal is seen as an underappreciated move that positions the company advantageously in terms of cost of capital for expanding capacity and the overall flexibility it has in leveraging its 500 MW of Bitcoin mining capabilities. The firm's evaluation suggests that Core Scientific's assets will grow in importance due to the anticipated power consumption needs for AI, as inferred from scenario sales estimates of Nvidia (NASDAQ:NVDA) and CoreWeave's fundraising activities. With the existing scarcity of power in the U.S. grid, Core Scientific's early initiatives are expected to give it a leading edge in the AI/HPC data center market. Cantor Fitzgerald's assessment concludes that Core Scientific stands at the forefront of the AI/HPC data center race, which is crucial for the advancement of AI. The firm believes that the risk/reward profile for Core Scientific is currently very appealing, given its position and potential in the evolving market. In other recent news, Core Scientific has been making significant strides in the digital infrastructure and bitcoin mining industry. H.C. Wainwright has maintained a Buy rating on Core Scientific, reflecting confidence in the company's strategic partnerships and position within the evolving bitcoin mining industry. The firm's reaffirmed $15 price target indicates the company's potential growth, particularly following its recent machine deal with Block-ePIC. Core Scientific has secured high-performance computing (HPC) hosting contracts totaling 270 megawatts, projected to generate over $4.7 billion in revenue over the next 12 years. Additionally, the company has expanded its hosting agreement with CoreWeave, which is expected to generate an additional $1.225 billion in cumulative revenue. The company's operational infrastructure has grown to 832 MW following a 72 MW expansion at its Denton, Texas data center. Furthermore, Core Scientific's CEO, Adam Sullivan, has secured a new employment agreement that includes a base salary of $625,000 and an annual incentive target of 125% of the base salary, contingent upon performance criteria. As Core Scientific Inc. (NASDAQ: CORZ) garners attention with its strategic moves and new Overweight rating from Cantor Fitzgerald, real-time data and insights from InvestingPro provide additional layers to the investment narrative. With a significant market capitalization of $2.08 billion, Core Scientific's financial health and growth prospects can be further understood through key metrics. The company's P/E ratio, standing at a lofty 86.3, suggests that investors are willing to pay a premium for its earnings potential, buoyed by the expectation of net income growth this year, as indicated by one of the InvestingPro Tips. Moreover, the impressive quarterly revenue growth of 48.6% underscores the company's expanding operations. Investors may also note the substantial price movements, with Core Scientific experiencing a 19.75% return over the last week, and an even more remarkable 333.33% return over the last three months. Such strong performance is reflective of the positive market sentiment and the company's recent strategic partnership, which aligns with the insights from Cantor Fitzgerald regarding Core Scientific's positioning in the AI/HPC data center market. For those considering an investment in Core Scientific, there are additional InvestingPro Tips available that shed light on the stock's valuation and momentum. The company is currently trading near its 52-week high, which may suggest a moment of caution for investors looking for entry points. To explore these tips further and gain a more comprehensive investment perspective, visit https://www.investing.com/pro/CORZ. Additionally, readers can benefit from an exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to a wealth of investment insights. InvestingPro has 11 more tips available that can guide investors through the complexities of the market and Core Scientific's place within it, providing a robust toolset for informed decision-making in the dynamic landscape of Bitcoin mining and AI data center investments.
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Core Scientific's recent deal with Generate Capital for Bitcoin mining assets has caught the attention of analysts, highlighting the importance of power access in the crypto mining industry. The company's shares see a boost following a new overweight rating.
Core Scientific, a prominent player in the cryptocurrency mining sector, has recently made headlines with its strategic acquisition of Bitcoin mining assets from Generate Capital. This move has garnered significant attention from industry analysts, particularly emphasizing the crucial role of power access in the competitive landscape of crypto mining 1.
H.C. Wainwright analyst Kevin Dede has provided valuable insights into the implications of this deal. Dede underscores the importance of Core Scientific's ability to secure access to power, a critical factor in the energy-intensive process of Bitcoin mining. The analyst notes that this acquisition not only bolsters Core Scientific's mining capabilities but also positions the company favorably in terms of operational efficiency 1.
The market has responded positively to Core Scientific's strategic move. Following the announcement of the deal, the company's shares experienced a notable uptick. This positive momentum was further reinforced by a new overweight rating from a prominent financial institution 2.
This development highlights the evolving dynamics within the cryptocurrency mining sector. As competition intensifies, companies are increasingly focusing on securing reliable and cost-effective power sources to maintain their competitive edge. Core Scientific's recent deal exemplifies this trend, potentially setting a precedent for similar strategic moves within the industry 1.
Analysts are optimistic about Core Scientific's future prospects following this deal. The acquisition is expected to enhance the company's operational efficiency and potentially lead to improved financial performance. As the cryptocurrency market continues to evolve, Core Scientific's proactive approach in securing crucial resources positions it well for future growth and challenges in the dynamic world of digital asset mining 2.
CoreWeave, an AI infrastructure startup backed by Nvidia, is reportedly in talks for a secondary share sale that could value the company at $23 billion. This move comes as the artificial intelligence sector continues to experience rapid growth and investment.
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TeraWulf, a Bitcoin mining company, is exploring zero-carbon mining practices and potential expansion into AI and high-performance computing. This move highlights the evolving landscape of cryptocurrency mining and its intersection with emerging technologies.
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A new wave of US-made Bitcoin mining hardware is set to create a $20 billion opportunity, potentially disrupting China's long-standing dominance in the crypto mining industry. This development could reshape the global landscape of Bitcoin mining.
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Evercore ISI has increased Nvidia's price target, emphasizing the company's strong position in the AI-driven market. The firm recommends buying Nvidia stock ahead of earnings, dismissing concerns about potential weakness.
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Analysts offer contrasting views on Coursera's stock as the company benefits from increased AI course demand. While Cantor Fitzgerald raises its price target, Goldman Sachs issues a sell rating, citing unanswered questions about the company's strategy.
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