Bitcoin
Bitcoin Miner Core Scientific Shares Soar on AI Expansion Plans
Mining units at a bitcoin mining facility in Texas. Photographer: Jordan Vonderhaar/Bloomberg
© 2022 Bloomberg Finance LP
Artificial intelligence (AI) is hungry for computing power, and bitcoin miners are willing to repurpose your infrastructure can profit handsomely.
Core Scientific, one of the largest publicly traded bitcoin miners, emerged from bankruptcy in January and spent June with its shares soaring, more than doubling to $9.57 per share, with a 10% increase on Wednesday. fair, announcing an increase in computing capacity. for high-performance computing (HPC) that underpins AI operations.
Core revealed new details about the 300 megawatts of HPC infrastructure available at an investor day event that will be in addition to the 200 megawatts committed under a recent deal with AI hyperscaler CoreWeave. This deal could generate $3.5 billion in revenue over the life of a 12-year contract, which has two five-year extension options, with annualized profit margins in the 75-80% range, according to CEO Adam Sullivan.
“Considering the additional 300 megawatts of HPC infrastructure, the full 500 megawatts could generate more than $8 billion in revenue over a 12-year period,” said CEO Adam Sullivan. “We are building a very application-specific digital infrastructure. It is very difficult to find scale in this sector. It’s even harder to find scale for the newest generation of graphics processing units (GPUs), so the target customer base is people who are building not only some of the biggest AI models, but also other applications that require the arrival of newest generation of GPUs on the market. ”
Following this announcement, the company’s shares rose almost 10% to $9.57.
The CoreWeave deal highlights the growing power demands of AI vendors. “Think about the immense demand for high-performance computing and the limited power available that can be deployed quickly,” Kevin Dede, an analyst at HC Wainwright, told Forbes. “The Core has 1.2 gigawatts of power, much of which is already built and some of which can be converted to handle HPC loads. For AI companies, getting processors up and running quickly can make all the difference. Helping to develop infrastructure can ease the financial burden while speeding up the process.”
Sullivan said at Wednesday’s event that more than 50 companies initially vied for CoreWeave’s spot. CoreWeave likes Core Scientific’s prospects so much that it offered to buy the entire company on June 3 for $5.75 per share, or about $1 billion, an offer rejected three days later as “significantly undervaluing” the goal.
Yesterday, Compass Point analyst Joe Flynn issued a Buy rating on Core Scientific shares with a price target of $12.50. “Overall, we believe the stock is currently in the process of being revalued and see continued upside potential from additional HPC announcements (500MW total potential target price of $17.50) and view CORZ as a potential target of withdrawal given that CoreWeave recently offered $5.75/share (an offer that was recently rejected by the board of directors for undervaluing the company) and the power needs/constraints of AI computers,” Flynn wrote.
Core Scientific managed to emerge from bankruptcy after a recovery in cryptocurrency prices allowed it to cut $400 million in debt, giving creditors an equity stake in the reorganized company. The company’s performance largely depends on its ability to deliver infrastructure in a timely manner, but for now, its projects are coming online faster than anticipated, BTIG analysts wrote in a research note to customers in May.
“We really think of Core Scientific’s investment thesis as a unique opportunity driven by digital infrastructure in the space that is benefiting from the expansion of AI computing that we are seeing today,” Sullivan said on Wednesday. “We are looking to build a much more balanced business that offers strong, high visibility of recurring revenue with exposure not just to bitcoin mining but also the upside potential of AI.”
Bitcoin
‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump
Bitcoin
Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.
The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.
Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.
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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.
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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.
“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.
“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”
John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”
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Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.
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Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.
According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”
The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.
Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.
How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.
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Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.
The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.
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