In a research note released late on Thursday, says Cantor Fitzgerald Core Scientific (Corz) Could pick up over $ 30 per Share in a potential acquisition of the Cloud Compute Giant Coreweave, referring to both the long-term cash flows from its AI contracts and the replacement value of its data centers.
It would be an almost doubling from the current level just over $ 16.
The note came hours after The Wall Street Journal reported that Coreweave, a Cloud AI computer company, is again in advanced conversations to acquire Core Scientific after a failed $ 5.75 per year. Aktie offer in 2024.
Corz shares jumped 33% to close over $ 16 Thursday, but Cantor believes it still underestimates the company by at least 50%.
In the heart of the Bull case is a 12-year-old, $ 3.5 billion infrastructure Lease Core Scientific signed with Coreweave in 2024 to give 200 megawatt AI capacity.
Cantor appreciates the lease flow to $ 24/stock using a conservative 15x profit that is several typical of traditional data center Reits. Add additional $ 11.70/Part for the replacement value of Corz’s 570 MW Power Infrastructure, and Up -Head Case is getting ready.
BTC – AI Pivot
But it’s not just Cantor who argues that the calculation effect used to crush numbers to my BTC may be more effectively used for AI.
Rittenhouse Research, a new fintech and AI-focused company, released a May report that argued that the most successful crypto companies do not double Bitcoin. Instead, they turn to become AI infrastructure providers.
When Galaxy Digital bought Helios Data Center in late 2022, it seemed like a rescue of a fighting miner, yet it turned out to be a strategic AI active as the demand for data center space increased with the increase in chatgpt and LLMS, pointed out Rittenhouse.
“The infrastructure used for my digital gold is better used to treat AI algorithms,” Rittenhouse wrote at that time.
The core of the argument is the belief that AI generates stable, long-term cash flows, as opposed to BTC mining, which is subject to sharp revenue that falls every four years due to halving and is highly dependent on Bitcoin’s volatile pricing cycles.
The future profitability of BTC mining, noticed Rittenhouse, is also dependent on mining companies being able to design chips that are significantly more effective every cycle of explaining semi -hemoning, an ever more difficult task as gains from silicon shrinkage begin to plateau.
But not every turn away from BTC is successful
While Cantor, and the market broadly, look lovingly at Core Scientific’s possible turning, not all turns away from BTC mining have gone well.
As Coindesk recently reported, Bit Digital dumps its Bitcoin rigs to go all-in on Ethereum-Stacking, and the market pushed its share down by 15% during Thursday’s Trade Session in New York.
Canaan, once he hoped to diversify to AI hardware, has now closed his chip unit completely after not having traction. Its stock is down almost 75% in the last six months and closed at 63 cents on Thursday.
But core scientific could have found the middle path that utilized its mining-built footprint to utilize an infrastructure boom of $ 100 billion plus.
If Cantor’s thesis turns out right, Coreweave’s second offer for Corz could look very different from what they did last year and it could mark a new plan for the rest of the sector.
Neither Coreweave nor Core Scientific have publicly commented on the case.
