The intersection of cryptocurrency mining and artificial intelligence is creating explosive new trading opportunities, a trend vividly illustrated by Core Scientific's (CORZ) recent stock performance. Following reports of a potential buyout by AI cloud computing firm CoreWeave, shares of the Bitcoin miner surged 33% to close above $16 on Thursday. However, analysts at Cantor Fitzgerald believe the rally has much further to run. In a research note, the firm suggested CORZ could be worth over $30 per share in an acquisition, representing nearly double its current valuation. This bullish outlook stems from a fundamental reassessment of the company's assets, moving beyond its role as a pure-play Bitcoin miner to an essential provider of AI infrastructure.

The Valuation Case for Core Scientific (CORZ)

The core of Cantor Fitzgerald's thesis is a landmark 12-year, $3.5 billion contract Core Scientific signed with CoreWeave earlier in 2024. This deal commits CORZ to provide 200 megawatts (MW) of power for AI and high-performance computing (HPC) workloads. According to the analysis, this stable, long-term cash flow stream alone is worth an estimated $24 per share, based on a conservative 15x profit multiple common for data center REITs. On top of that, Cantor adds another $11.70 per share for the replacement value of Core Scientific's extensive 570MW of existing power infrastructure. This valuation starkly contrasts with a failed $5.75 per share offer from CoreWeave in 2024, highlighting how the AI boom has dramatically revalued the underlying assets of Bitcoin miners.

The Great Pivot: From BTC Mining to AI Compute

This strategic shift is not unique to Core Scientific. A May report from fintech and AI research firm Rittenhouse Research argued that the most forward-thinking crypto companies are pivoting away from a singular focus on Bitcoin. They contend that the vast, power-hungry infrastructure built for mining digital gold is now more valuable when used to process AI algorithms. The argument centers on revenue stability; AI contracts provide predictable, long-term cash flows, insulating companies from the extreme volatility of the crypto markets and the periodic revenue shocks caused by Bitcoin's four-year halving cycle. As the broader crypto market showed weakness, with BTCUSDT falling 1.77% to $105,534.44 and ETHUSDT dropping 4.04% to $2,396.98, the appeal of this stable revenue model becomes even clearer. This pivot also addresses a growing technological challenge for miners: the diminishing returns from silicon advancements make it increasingly difficult to design chips efficient enough to offset the halving's impact.

HIVE Digital's Canadian AI Ambitions

Following a similar blueprint, HIVE Digital Technologies (HIVE) announced its acquisition of a 7.2 MW data center in Toronto, Canada. HIVE plans to transform the site into a Tier 3 data center for its subsidiary, BUZZ HPC, capable of hosting up to 5,000 next-generation, liquid-cooled GPUs. This move is explicitly aimed at capturing the demand for AI model training and inference. Craig Tavares, president of BUZZ HPC, emphasized the strategic importance of creating a "sovereign AI data center" to ensure Canadian data residency and security. This aligns with a global trend of nations racing to build domestic AI infrastructure. For HIVE, which began as a crypto miner, this represents a significant step in its evolution towards a diversified AI and cloud services provider, creating a new narrative for investors that is less dependent on daily crypto price fluctuations.

While the AI pivot has been a boon for CORZ and HIVE, it's not a guaranteed path to success. Bit Digital saw its stock fall 15% after announcing a move away from Bitcoin rigs toward Ethereum staking. Meanwhile, hardware manufacturer Canaan shuttered its AI chip unit after failing to gain market traction, with its stock plummeting nearly 75% in the last six months. The success of Core Scientific and HIVE suggests that the most viable strategy involves leveraging existing physical infrastructure—data centers and power agreements—to serve the insatiable demand of the AI industry. This creates a fascinating divergence for traders: while the digital asset market, including pairs like SOLBTC (-4.30%) and ADABTC (-3.19%), faces headwinds, the physical infrastructure that once powered it is finding a new, potentially more lucrative, lease on life.