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 Feb 24, 2022 at 9:58 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

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 a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC