Hedge fund Sachem Head sees room for Ionic shares to surge
IOND•Sachem Head Capital Management believes Ionic Digital shares could rise to $151, nearly 140%, as the former bitcoin miner shifts toward digital infrastructure leasing. Sachem Head owns roughly 9.9% of Ionic and may become more involved with the company.
1. Price target and stake
Sachem Head founder Scott Ferguson said the firm sees room for Ionic Digital shares to reach $151, a gain of nearly 140%. Sachem Head owns roughly 9.9% of the company and plans to make a regulatory filing detailing its ownership with the Securities and Exchange Commission.
2. Digital infrastructure plans
Ionic, formed through the bankruptcy restructuring of Celsius Network, began trading on Nasdaq in July. The former bitcoin miner is shifting toward digital infrastructure leasing and holds a 10-year triple-net lease in Ward County, Texas, with Nscale, which has a possible 10-year extension; Microsoft is the end customer for the site.
3. Potential involvement
Ferguson said an expansion in Ward County and sites in Midland, Texas, could help the stock price gain further. He said Sachem Head thinks Ionic's management is pretty good, but the firm may become more involved.
