Core Scientific (CORZ) Stock: Price Target Raised 41% as Bitcoin Miners Pivot to AI

Bitcoin miners now play a key role in the AI value chain, according to Bernstein. Their large-scale power facilities have become essential for AI data centers. The broker calls this the biggest bottleneck to execution in the AI industry.

Every U.S.-listed bitcoin miner under Bernsteins coverage has made this strategic shift. The companies are optimizing the value of their power assets rather than betting on bitcoin upside.

The broker made a major change to how it values these companies. Bernstein discarded its discounted cash flow valuation methodology. The firm adopted a sum-of-parts approach instead.

This new model captures the different valuations for bitcoin mining and AI colocation businesses. It combines miners bitcoin holdings, mining EBITDA, AI co-location revenues, and cloud revenues. The model also includes the value of power sites earmarked for AI data centers using a $3 million per megawatt multiple.

Core Scientifics HPC Colocation Strategy

Core Scientific is transitioning toward high-performance computing colocation. The company plans to deliver approximately 590 megawatts of IT load by early 2027.

Shareholders recently rejected the CoreWeave deal. This rejection gives management more flexibility to optimize value. The broker noted a new partnership is expected in the fourth quarter.

The stock responded well to the analyst upgrade. Core Scientific shares rose 6.8% in premarket trading to $23.

Broader Mining Sector Gets Boost

Bernstein also raised targets for other mining companies. Riot Platforms saw its target increase to $25 from $19. The upgrade reflects the AI potential of its 1-gigawatt Corsicana site.

CleanSparks target moved to $24 from $20. The company is shifting toward a hybrid bitcoin-AI model through new hires and partnerships.

Bernstein rates IREN, CORZ, RIOT, and CLSK as outperform. The broker said miners with active or potential AI contracts are being re-rated by the market.

Mining stocks rallied across the board in premarket trading. IREN jumped 21% to around $60.75 following news of an AI cloud deal with Microsoft. Riot stock gained 3% to $20.38. CleanSpark climbed 3.6% to $18.44.

The sector is being viewed as a key enabler of next-generation computing infrastructure. Miners are providing what the broker calls “warm powered shells” for AI data centers.

Bernsteins analysts emphasized that bitcoin miners with active or potential AI contracts are getting higher valuations. The market now sees these companies differently than traditional crypto miners.

The brokers new valuation approach treats the AI colocation business separately from bitcoin mining operations. This reflects the different growth prospects and risk profiles of each business line.

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