Analysts at research and brokerage firm Bernstein have initiated coverage on Core Scientific (NASDAQ:CORZ) and Iren Energy (NASDAQ:IREN) with an outperform rating and reiterated their $200,000 price target for Bitcoin (CRYPTO: BTC).
What Happened: The analysts, Gautam Chhugani and Mahika Sapra, highlighted the firms' hybrid bitcoin mining and AI data center strategies as key factors, The Block reported. They pointed to Core Scientific's recent 12-year deal with AI firm CoreWeave, projecting $3.5 billion in revenue, and IREN's Nvidia GPU deal with AI startup Poolside as examples.
Bernstein set a price target of $17 for Core Scientific, representing a 64% upside, and $26 for Iren Energy, a 78% upside.
The analysts believe Core Scientific now leads the Bitcoin miner AI data center co-hosting model after overcoming bankruptcy in January. Iren Energy boasts one of the strongest power pipelines and data center operations capabilities. Chhugani and Sapra expect 20% of bitcoin miners' power capacity to pivot to AI by the end of 2027.
In June, JPMorgan noted a surge in investor interest in bitcoin miners following Core Scientific's AI hosting deal. IREN also raised $413 million for its bitcoin mining expansion earlier this month.
The analysts also reiterated their call for Bitcoin to reach $200,000 by the end of 2025, $500,000 by 2029 and $1 million by 2033.
Also Read: CPI Data, Jerome Powell, Ethereum ETFs: What Bitcoin Traders Are Watching This Week
Why It Matters: After a period of sideways trading, volatility in the cryptocurrency market has picked up. In early July, Credible Crypto, a well-known analyst, predicted an 80% rally for Bitcoin following a correction phase.
Moreover, new data from prediction market platform Kalshi indicated a 79% probability that Bitcoin could dip below $50,000 by year-end. These outlooks contrast with Bernstein's bullish stance.
Bitcoin's recent fall below $60,000 has been fueled by Germany's equivalent of the FBI liquidating its Bitcoin holdings. According to economist Alex Krüger, the sale of 16,038 BTC in a single day dropped Bitcoin prices by 3.5% and could take Bitcoin down as much as 10%.
What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.
- What Technical Analysis Says About Bitcoin's Latest Dump
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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