Bitcoin Miner Core Scientific Has More Than 100% Upside: BTIG

Core came public last month via a SPAC merger, but has struggled alongside declines in the price of bitcoin.

AccessTimeIconFeb 24, 2022 at 5:49 p.m. UTC
Updated May 11, 2023 at 6:00 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Core Scientific (CORZ) is one of the largest vertically integrated bitcoin (BTC) mining companies in North America, according to BTIG analyst Gregory Lewis, who initiated coverage with a buy rating and $18 price target.

  • Vertically integrated, said Lewis, means Core owns not just mining rigs but the infrastructure to host such rigs for both itself and others. The company came public last month through a merger with SPAC Power & Digital Infrastructure Acquisition.
  • At about 7.5 EH, or roughly 3.8% of global hash capacity, Core already operates the most hash among its publicly traded peers, said Lewis. With another 7.5 EH scheduled to come online later this year, the company’s global market share could rise to 4%-5%. Core also has a diversified infrastructure footprint, with seven locations across the U.S., and another two under construction.
  • Another selling point is the company’s hosting business for third-party miners (currently at about 7.1 EH), a source of stable revenue that should enable a lower cost of capital than peers, said Lewis. He initiated coverage with a buy rating and $18 price target, or more than a double the current price of $7.90.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Author placeholder image

Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.