In a research record released on Thursday, Cantor Fitzgerald said Core Scientific (Corz) can take more than $ 30 per part in a Potential acquisition of cloud compute giant coreweaveConsidering both long -term cash flow from AI contracts and the replacement value of its data centers.
That would be a close double from the current level above just $ 16.
The note came some time after The Wall Street Journal Coreweave, a cloud AI compute firm, was reported again in advanced conversations to get a basic scientific, following a failed $ 5.75 per sharing offer in 2024.
Corz’s shares jumped 33% to close more than $ 16 Thursday, but Cantor believes the company is still undervalues at least 50%.
In the middle of the bull case is a 12-year, $ 3.5 billion infrastructure lease scientific signed with coreweave in 2024 to provide 200 megawatts of AI capacity.
Cantor appreciates the stream of rent for $ 24/share, using a conservative 15x income a lot of typical for traditional data center reits. Add another $ 11.70/Share for the replacement value of 570mw of Corz power infrastructure, and the opposite case becomes clear.
THE BTC – AI PIVOT
But it’s not just Cantor that focuses that the strength of the compute used for crunching numbers in the BTC mine may be better used for AI.
Rittenhouse Research, a new firm dedicated to Fintech and Ai, A report was released in May The dispute that the most successful crypto company does not double Bitcoin. Instead, they pivoted to become AI infrastructure providers.
When Galaxy Digital bought the Helios Data Center in late 2022, it seemed like a rescue of a poor miner, however it became a strategic AI asset as a demand for data space that promoted the increasing chatgpt and LLMs, Rittenhouse pointed out.
“The infrastructure used in the digital gold mine is better used to process AI algorithms,” Rittenhouse wrote at that time.
In the main part of the argument is the belief that AI generates a stable, long-term cash flow, unlike BTC mining, which is subject to sharp income decreases every four years due to halvings and excessively dependent on the volatile price cycle of bitcoin prices.
The future profitability of BTC mining, Rittenhouse mentioned, also depends on mining companies that can design chips that are significantly better with every round to account for halvening, a more difficult task as those obtained from the silicon retrieval start at the cliff.
But not all pivots far from BTC are successful
While Cantor, and the market broadly, are looking for love -the possible pivot of the scientific core, not all pivots far from BTC mining have lost it properly.
As CoinDesk recently reported, Bit Digital throws Bitcoin’s rigs to go all to Ethereum StakingAnd the market pushed its stock 15% during the Thursday trading session in New York.
Canaan, who sometimes hopes to vary -divers Now its chip unit is closed completely after failing to get traction. Its stock dropped nearly 75% in the last six months, and closed to 63 cents on Thursday.
But the main scientific can find the middle path, using a trace of mining to tap into a $ 100 billion-plus AI infrastructure boom.
If Cantor’s thesis proves correctly, Coreweave’s second offer for Corz may look different From what they did last yearAnd it can be marked with a new blueprint for the rest of the sector.
Neither the coreweave nor core scientific did not comment on this matter.
