BTIG Upgrades Core Scientific Inc. (CORZ) amid Undervaluation Concerns and HPC Colocation Contracts Expectations

Core Viewpoint - Core Scientific Inc. (NASDAQ:CORZ) is recognized as a promising investment in the cryptocurrency and blockchain sector, with recent upgrades indicating strong growth potential and undervaluation concerns [1][2]. Group 1: Stock Performance and Valuation - BTIG upgraded Core Scientific from Neutral to Buy, maintaining a price target of $23, citing the stock's underperformance compared to peers in artificial intelligence computing contracts [1][2]. - The stock has declined approximately 30% over the past two months, trading at a valuation of $4 million per megawatt, significantly lower than the $7 million per megawatt of competitors with high-performance computing contracts [2]. Group 2: Future Growth Prospects - BTIG anticipates that Core Scientific will secure additional high-performance computing colocation contracts by 2026, supported by increasing demand for computing power infrastructure [3]. - Citizens previously upgraded the stock to Market Outperform with a $30 price target, highlighting the company's strong growth prospects and solid power pipeline for future high-performance computing agreements [4]. Group 3: Business Focus - Core Scientific operates large-scale data centers, initially focused on Bitcoin mining but is now transitioning to provide high-density infrastructure for artificial intelligence and high-performance computing workloads, along with power, cooling, and specialized hosting services for third-party clients [5].