Core Scientific initiated with a Buy at Canaccord after Coreweave ‘mega deal’

As previously reported, Canaccord initiated coverage of Core Scientific (CORZ) with a Buy rating and $16 price target. In January, the company emerged from bankruptcy protection with an operating model ready to make money again in Bitcoin mining and then in June Core Scientific announced what the firm views as “the first and landmark ‘mega deal’ signed by a Bitcoin miner” to provide high-performance compute data center hosting capacity to Nvidia (NVDA) partner Coreweave. The firm likes the economics Core is getting with Coreweave, telling investors that on a contract that could generate in excess of $6B in revenue over twelve years, management is expecting to drive a roughly 80% contribution-like margin.