American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

This Bitcoin miner is down 25% after DeepSeek selloff, but analyst sees rebound ahead

by admin January 31, 2025
January 31, 2025
This Bitcoin miner is down 25% after DeepSeek selloff, but analyst sees rebound ahead

DeepSeek’s artificial intelligence announcement triggered a sizable sell-off in bitcoin miners this week. One of the hardest hit among them was Core Scientific Inc.

In just the last five days, the Core Scientific stock has slumped down around 25%. The stock currently trades at around $12.

But the Chinese startup driven decline in Core Scientific stock may be overblown, according to Bernstein analyst Gautam Chhugani.

Down more than 30% versus its high in late November, shares of the Austin headquartered miner trading at a deep discount at writing, which warrants an investment for significant potential returns in 2025, he told clients in a research note today.

Core Scientific stock could return to $17

Bernstein recommends loading up on Core Scientific stock on the weakness as it could climb back to the $17 level by the end of 2025.

Analyst Chhugani called the Nasdaq listed firm a leader in hybrid miners or companies that have an active bitcoin mining as well as an artificial intelligence business.

CORZ has a first-mover advantage over its rivals with a $6.7 billion deal with Nvidia-backed CoreWeave in 2024, he added.

Our top pick, CORZ offers ready power access and data centre buildout to HPC cloud partners such as CoreWeave, who in turn are contracted by hyperscalers and AI labs.

Core Scientific shares do not currently pay a dividend though.

CORZ is being valued as pure-play bitcoin miner

Core Scientific is currently trading at an enterprise value of about $2.7 million per megawatt – more like a pure-play bitcoin miner than a hybrid.

The company based out of Austin, Texas has about 70% of its capacity allocated to AI. Still, data centres don’t seem to be baked into its valuation at writing, Chhugani argued in his report.

Bitcoin miners are the second derivative of the AI capex story. They have a 12-18 months finite window to build a hybrid data centre business, while the hyperscalers capex remains persistent.

Versus its 52-week low, Core Scientific stock is up a whopping 350% at writing.

How Core Scientific did in its latest reported quarter

Analyst Gautam Chhugani remains super bullish on Core Scientific stock even though the company’s third-quarter financial results in November were not all that encouraging.

CORZ saw its revenue tank 16% on a year-over-year basis to $95 million as its loss also widened to $455 million in Q3. At the time, chief executive Adam Sullivan told investors:

Based on our existing pipeline and growing list of potential new clients, we now have line of sight to a total of more than one gigawatt of critical IT load to contract, significantly expanding the value we can create for our shareholders.

Note that Bernstein is not the only one among Wall Street firms to take a bullish stance on bitcoin miners following the DeepSeek driven decline.

Analysts at Cantor Fitzgerald and Piper Sandler also called the sell-off overdone in their research notes this week.

The post This Bitcoin miner is down 25% after DeepSeek selloff, but analyst sees rebound ahead appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
FTSE 100 forecast: BoE decision, Diageo, Vodafone, GSK earnings
next post
Interview: ‘Indian women are not shy, they know what they want,’ says Gleeden’s Sybil Shiddell

Related Posts

SCHD and VYM ETFs forecast for November 2024

November 1, 2024

DJT stock: Trump Media’s dilution and bankruptcy risks...

October 15, 2024

Sweetgreen stock forecast for 2025: will the SG...

December 24, 2024

Court blocks Trump tariffs: markets get a lift,...

May 29, 2025

Red alert: Donald Trump’s trade war sends stocks...

April 4, 2025

FTSE 100 index forecast as the GBP/USD exchange...

April 16, 2025

Atlassian stock analysis: is TEAM a buy or...

January 27, 2025

Mullen stock price went parabolic: is MULN a...

May 20, 2025

Federal prosecutors are examining financial transactions at Block,...

May 3, 2024

Brazil’s Casas Bahia shares jump 30% in a...

March 12, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved