According to CoinDesk, B Riley upgraded Core Scientific's rating from neutral to buy and raised the target price from $0.50 to $13. The report said Core Scientific is a leader in future high-performance computing hosting.
Core Scientific's agreement with CoreWeave takes it a significant step toward achieving economies of scale. B Riley said management has extensive experience operating enterprise data centers.
B Riley has updated its valuation for Core Scientific to reflect the CoreWeave agreement and possible future HPC agreements. The total value of the announced agreements is $2.3 billion, and the 270 MW committed does not include possible expansion options.
Analysts Lucas Pipes and Nick Giles note that the industry size for the remaining 1.23 million Bitcoins (~6% of total supply) is approximately $80 billion. Core Scientific has exceeded expectations in achieving economies of scale with its AI protocol, and CoreWeave will cover the capital costs of all HPC upgrades.
