Core

Hybrid

Bitcoin

Optimism

Investment and brokerage firm Bernstein has reiterated its bullish outlook on Bitcoin, maintaining a price target of $200,000 by the end of 2025. Alongside this, Bernstein initiated coverage on <a href="https://ultramining.com/news/en/bitcoin-mining-giant-core-scientific-prepares-for-post-bankruptcy-comeback/" rel="noopener noreferrer nofollow">Core Scientific</a> and IREN, rating them as outperform due to their hybrid Bitcoin mining and AI data center strategies, according to <a href="https://cryptonewsbtc.org/2024/07/15/bernstein-reiterates-200000-bitcoin-target-initiates-coverage-on-core-scientific-and-iren/" rel="noopener noreferrer nofollow">Cryptonewsbtc</a>.
Key Partnerships Drive Optimism
Core Scientific's recent 12-year deal with AI firm CoreWeave, which is expected to generate $3.5 billion in total revenue, and IREN's Nvidia <a href="https://ultramining.com/news/en/kaspa-takes-the-lead-in-gpu-mining-sets-sights-on-transforming-pow-landscape/" rel="noopener noreferrer nofollow">GPU</a> deal with AI startup Poolside, have been highlighted as significant catalysts. These partnerships exemplify the companies' strategic pivot towards integrating high-performance computing (HPC) solutions with their Bitcoin mining operations.
In June, JPMorgan noted a surge in investor interest following Core Scientific’s AI <a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/" rel="noopener noreferrer nofollow">hosting</a> deal. This momentum was further bolstered when IREN raised $413 million to expand its Bitcoin mining operations earlier this month.
Financial Projections and Market Response
Bernstein has set a price target of $17 for Core Scientific, representing a 64% upside, and $26 for IREN, indicating a 78% upside. Despite these positive outlooks, Core Scientific and IREN shares recently closed down 7.7% at $9.56 and 12.4% at $12.82, respectively.
Hybrid Model Leadership
Bernstein analysts Gautam Chhugani and Mahika Sapra argue that Core Scientific now leads the Bitcoin miner AI data center co-hosting model, while IREN boasts one of the strongest power pipelines and data center operations capabilities. The analysts previously covered other Bitcoin miners like Riot Platforms, <a href="https://ultramining.com/news/en/cleanspark-doubles-down-on-bitcoin-mining-with-55m-expansion/" rel="noopener noreferrer nofollow">CleanSpark</a>, and Marathon, citing a new Bitcoin bull cycle and post-<a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a> industry consolidation.
Bitcoin Mining and AI Synergies
Bitcoin mining facilities are seen as ideal for retrofitting for AI due to their high power density racks, cooling infrastructure, and data center operational expertise. Bernstein projects that 20% of Bitcoin miners’ power capacity will pivot to AI by the end of 2027, led by hybrid companies like Core Scientific, IREN, and <a href="https://ultramining.com/news/en/hut-8s-q2-2023-a-bitcoin-mining-marvel/" rel="noopener noreferrer nofollow">Hut 8</a>.
Long-Term Bitcoin Price Forecast
In June, Bernstein raised its Bitcoin price target to $200,000 by the end of 2025, driven by unprecedented demand from spot Bitcoin ETFs and the marginal cost of production modeling for Bitcoin miners. The analysts foresee Bitcoin reaching $500,000 by 2029 and $1 million by 2033. They maintain that the market currently undervalues Bitcoin miners due to volatility concerns, despite a long-term structural uptrend driven by rising institutional adoption.
"Bitcoin miners are being undervalued for their ‘strategic energy portfolio’ and monetization potential in AI <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/" rel="noopener noreferrer nofollow">data centers</a>, in a ‘power’ constrained world," Chhugani and Sapra wrote. They believe the AI revenue stream provides a downside floor for miners, with Bitcoin offering cyclical upside.

Bernstein Reiterates $200,000 Bitcoin Target and Initiates Coverage on Core Scientific and IREN

Ultramining_Eng

Alte articole publicate pe 15 iul. 2024

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