Bitcoin Miner Core Scientific Should Weather Crypto Storm, Analyst Says
Crypto hosting and mining company Core Scientific (CORZ) has the scale and experience to make it through the bitcoin (BTC) market downturn, Compass Point analyst Chase White told clients in a note Tuesday.
White also wrote that Core has sufficient access to capital with its monthly production of bitcoin and its equity line of credit to fund its operations and debt through the end of next year. Core’s third-party hosting business also generates revenue that is less correlated to bitcon's prices, White added.
Compass Point initiated research coverage on Core with a buy recommendation and $4 price target. The shares were trading at about $1.42, up 3 cents, on Tuesday morning.
In July, Core agreed to issue up to $100 million in shares to investment bank B. Riley over two years to enhance liquidity, and in August, Core cut 10% of its staff and dramatically reduced the value of its assets in the midst of the rout in cryptocurrency prices.
Read more: Crypto Miner Core Scientific Cuts 10% of Staff, Keeps Hashrate Projection