Price Target Cut to $100 as Company Ends Bitcoin Mining, Secures $1.94B Microsoft GPU Deal
Analysts cut the firm’s price target from $125 to $100 and expect Bitcoin mining to end by 2030. A five-year, $1.94 billion Microsoft GPU deal plus $400 million in on-demand contracts funds 95% of its buildout, with AI cloud revenue projected at $6 billion by 2030.
1. Analyst Price Target Revision
Analysts cut the price target from $125 to $100 per share, attributing the reduction to recent equity issuance and a planned wind-down of Bitcoin mining while maintaining a bullish outlook on AI cloud operations.
2. Microsoft GPU Deal and Financing
Under a five-year arrangement, the company committed 77,000 GPUs to Microsoft for roughly $1.94 billion in annualized revenue and secured $400 million in on-demand GPU contracts. Financing deals — including a $5.8 billion processor purchase and $3.6 billion in GPU-backed loans at sub-6% rates — cover 95% of infrastructure costs.
3. Growth Projections and Mining Wind-down
Forecasts project AI cloud revenue rising from $2.6 billion in 2027 to $6 billion by 2030, with adjusted EBITDA margins near 82%. Bitcoin mining is set to be fully phased out by 2030, shifting all infrastructure to GPU-based cloud services.