Jefferies analyst Jonathan Petersen started coverage on Core Scientific (NASDAQ:CORZ) stock with a Buy rating on Monday as the bitcoin (BTC-USD) miner is well positioned to capture artificial intelligence demand.

The company is transitioning toward high-performance computing data center hosting in a bid to diversify its revenues. It has already signed a 12-year hosting contract with hyperscaler CoreWeave, and later expanded the agreement.

"We expect that many big tech companies will be closely watching the CoreWeave developments and successful execution will convince decision makers to sign future development leases with CORZ," Peterson wrote in a note to clients.

And he expects Core Scientific to diversify its tenant base to hyperscalers beyond CoreWeave, with management seen making further announcements by the end of the year.