Core Scientific (CORZ) is positioned to benefit from the rising demand in the AI sector, according to a report from Jefferies, which has initiated coverage of the bitcoin miner with a buy rating and a $19 price target. The report highlights the firm's strong power supply and effective data center development capabilities as key advantages. The company's operations in bitcoin mining are reported to be profitable and increasingly efficient. Jefferies noted that a significant deal signed with CoreWeave, a hyperscaler, in June positions Core to diversify its tenant base moving forward. Although future AI agreements may not match the favorable terms of the current lease, they are still expected to be beneficial to the company's economics. No substantial expansion of Core's mining operations is anticipated, but a stable number of ASIC miners is expected, with ongoing fleet refreshment. The company's shares showed a slight increase in early trading following the report.

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