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Core Scientific got a lot of attention in 2024 due to the hosting deals it struck with cloud provider CoreWeave.

But Hut 8's plans to lease its data center space - as yet unknown - may be put by one analyst in a stronger position than its rival.

Many Bitcoin miners have embarked on revenue diversification efforts in the past year - especially after Bitcoin's halving last year. This included a focus on construction Vertical HPC to Supporting artificial intelligence applications.

CORZ stock rose Nearly 300% in 2024 after emerging from bankruptcy and Relisting on the Nasdaq index Last January.

A research note Tuesday from Benchmark's Mark Palmer came on the heels of the West Feliciana Parish Planning and Zoning Commission. It is said Vote to approve construction of the planned Hut 8 data center in Louisiana. It is now seeking final approval.

Ballmer described this project as a potentially “game-changer” for the company, noting: “We believe HUT’s agreement with the unnamed AI-powered supercontroller could feature better economics on a per (megawatt) basis than planned.” To be achieved by CORZ in its deal.”

He explains that the reason is that the startup CoreWeave was unable to provide the necessary support for CORZ to tap into the project financing market. Instead, it agreed to provide most of the capital needed to build the project.

On the other hand, Palmer explains, having the support of Hut 8 from a large, established AI company enables it to access the financing market to raise the $2.5 billion it plans to invest in the first phase of the West Feliciana Parish project.

“The result is that HUT will not face the economic discount that CORZ granted to CoreWeave on the front of its project capital expenditures,” he added.

Hut 8 shares were trading for approximately $24.85 at 1:45 PM ET, while CORZ stock was trading at approximately $14.20. Although both were down over 6% that day, Hut 8's share price had a YTD share price gain over Core Scientific, +17% to -1%.

Palmer's stock price target for Hut 8 stock is $41. It's safe to say we'll be keeping an eye on these posts as the miner data center project progresses.

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