Bitcoin Miner Core Scientific Has More Than 100% Upside: BTIG

Vertically integrated, said Lewis, means Core owns not just mining rigs but the infrastructure to host such rigs for both itself and others. The company came public last month through a merger with SPAC Power & Digital Infrastructure Acquisition.

At about 7.5 EH, or roughly 3.8% of global hash capacity, Core already operates the most hash among its publicly traded peers, said Lewis. With another 7.5 EH scheduled to come online later this year, the company’s global market share could rise to 4%-5%. Core also has a diversified infrastructure footprint, with seven locations across the U.S., and another two under construction.

Another selling point is the company’s hosting business for third-party miners (currently at about 7.1 EH), a source of stable revenue that should enable a lower cost of capital than peers, said Lewis. He initiated coverage with a buy rating and $18 price target, or more than a double the current price of $7.90.