Core Scientific Analyst Initiates Coverage, Predicts Shares to be Multiples Higher than Current Price Target

Cantor Fitzgerald analyst Brett Knoblauch initiated coverage on Core Scientific, Inc. (NASDAQ:CORZ), with a price forecast of $20.

Cantor Fitzgerald analyst Brett Knoblauch initiated coverage on Core Scientific, Inc. (NASDAQ:CORZ) with a price forecast of $20.

Bitcoin miners have one of the most coveted assets in the world right now – access to power, the analyst noted.

In June 2024, Core Scientific announced a deal with CoreWeave (private), which saw shares of the company rise meaningfully.

Core Scientific was the first Bitcoin miner to sign a meaningful AI/HPC deal, with CoreWeave.

In the deal, which has since been extended, CoreWeave will lease 270 MW from Core and pay the company a total of $4.725 billion over 12 years, coming out to ~$1.45 million per MW.

What differentiates this deal the most and something other miners will not be able to replicate is the fact that CoreWeave will fund the entire capex buildout itself (~$1.3 billion).

This is essentially 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, per Knoblauch.

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.

CORZ Price Action: Shares of CORZ are seen trading lower by 5.17% to $11.10 at last check Wednesday.

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