BTIG Changes Core Scientific Inc. (CORZ) Rating

BTIG analyst Gregory Lewis upgraded Core Scientific Inc. (NASDAQ: CORZ) from Neutral to Buy with a price target of $8.00.

The analyst comments "We upgrade CORZ to Buy from Neutral on the back of continued execution and our expectation of a firming BTC price, which should allow the company to aggressively deleverage as warrants (~180M shares) are exercised accelerating the company's deleveraging strategy. The company currently has ~$589M of debt (pro forma for the ~$19M repaid after 1Q24), which would be paid down as the Tranche 1 warrants (~98M shares at a $6.81 strike; mature 1Q27) would net the company ~$670M. We note the Tranche 2 penny warrants (~82M shares) mature in 1Q29 and allow for cashless exercise. The exercise of the Tranche 1 warrants offers a clear path for debt retirement, and we believe an upward re-rating in the stock. Bottom line: a higher stock price allows for the warrants ($6.81 strike price) to be exercised deleveraging the company and removing restrictive covenants (currently a 50% cash sweep and the requirement for CORZ to sell all its BTC). We are bullish under a backdrop of a firm BTC price, ongoing deleveraging, and opportunities for their existing power capacity to be deployed in non-crypto data centers."

For an analyst ratings summary and ratings history on Core Scientific Inc. click here. For more ratings news on Core Scientific Inc. click here.

Shares of Core Scientific Inc. closed at $4.96 yesterday.

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