Jones Trading Starts DarkHorse Technologies Inc. (DRK) at Buy

Jones Trading analyst Kevin Dede initiates coverage on DarkHorse Technologies Inc. (NASDAQ: DRK) with a Buy rating and a price target of $5.00.

The analyst comments: “DarkHorse is the result of the June Cathedra Bitcoin and Sphere 3D merger. The company is wholly focused on developing small-scale powered shell infrastructure highly attractive to neoclouds intent on expanding their inference AI presence "in the places others overlook." We like where this company is going given the AI/HPC power deficit—management claims to be in discussions with multiple interested parties. DarkHorse brings an attractive group of assets to support our Buy rating and $5 price target: (1) 50MW of active gross megawatts, or approximately 35MW of critical IT once converted, through four individual facilities on the TVA grid for which potential neocloud customers have interest—full conversion of these sites forms the basis for our valuation; (2) a tight relationship with AI/ HPC datacenter pros at EA Advisors, mitigating the "capability to build to tier 3 specs" question; (3) a well-entrenched logistics supply chain leveraged by multiple facilities; and (4) a 100MW development pipeline, half of which could be powered up in 2028, re-rating the stock over the next 12 months.”

For an analyst ratings summary and ratings history on DarkHorse Technologies Inc. click here. For more ratings news on DarkHorse Technologies Inc. click here.

Shares of DarkHorse Technologies Inc. closed at $3.07 yesterday.

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