Cantor Fitzgerald said in a research note released late Thursday (CORZ) $30 for over $30 in A Potential acquisition of giant core cores of cloud computingQuote the long-term cash flow of its AI contract and the alternative value of its data center.
This will double the current level of nearly $16 or more.
The note appears a few hours later Wall Street Journal Cloud AI computing company Coreweave reportedly held another senior talks to get Core Scientific after its 2024 failure of $5.75 per share.
Corz shares rose 33% to close above $16 on Thursday, but Cantor believes the company still underestimates the company by at least 50%.
At the heart of the Bull case is the 12-year, $3.5 billion infrastructure leasing core science signed with Coreweave in 2024 to provide 200 MW of AI capabilities.
Cantor uses a conservative 15x profit for a traditional data center REIT with a conservative 15x profit of $24 per share. Added an additional $11.70 per share to the replacement value of CORZ 570MW power infrastructure, and the upward case became clear.
BTC – AI Pivot
But that’s not just Canto says that the computing power used to mine BTC may be more efficient for AI.
Rittenhouse Research is a new fintech and AI company, Report released in May The most successful cryptocurrency company thinks it hasn’t doubled Bitcoin. Instead, they are spinning into AI infrastructure providers.
Rittenhouse noted that it seemed like a rescue for thriving miners when Galaxy Digital purchased Helios data centers at the end of 2022, but it turned out to be a strategic AI asset as demand for data center spaces spurred with the rise of Chatgpt and LLM.
“The infrastructure used to mine digital gold can be better used to handle AI algorithms,” Rittenhouse wrote at the time.
At the heart of this argument, unlike BTC mining, AI generates stable long-term cash flows, as revenues from BTC mines drop sharply, due to excessive and largely dependent on Bitcoin’s volatile price cycle.
Rittenhouse notes that the future profitability of BTC mining also depends on the ability of mining companies to design chips, which significantly improve the decline period in each cycle, which is an increasingly difficult task as the growth of silicon shrinkage begins to stabilize.
But not every hub is far from BTC
While Cantor and the market look at Core Scientific’s possible hubs extensively, not all hubs far from BTC mining are doing well.
As Coindesk recently reported, BIT Digital is dumping Bitcoin rigs to go all outat the Thursday trade fair in New York, the market lowered its stock by 15%.
Canaan once hoped to diversify into AI hardware. Now shut down its chip unit After all, traction is not available. Its stock has fallen nearly 75% over the past six months and closed at 63 cents on Thursday.
But core science may have found a middle way, leveraging the grounds built by its mining to leverage over $100 billion in AI infrastructure to boom.
If Cantor’s paper proves correct, Coreweave’s Corz’s second offer might be very different They did it last yearit can mark a new blueprint for the rest of the sector.
Neither Coreweave nor Core Scientific commented on the matter publicly.
