It's happening again... the sequence of events quietly unfolding around a former Bitcoin miner, which has become a provider of AI chips for Microsoft...
No one is talking about it... but something very unusual happened right under your nose, and we noticed it..
On July 20, in its initial filing, Sachem Head hedge fund holds 6.9% of Unique Digital, after being among the leaders in the private investment in June.
September 30, the fund's holding is already 9.99%: 4,500,125 shares, approximately $288,143,000 according to the close on October 22.
October 15, Bitcoin drops to $79,676, and mining stocks fall with it, especially the entire Bitcoin mining sector collapses as financing concerns develop.
But Sachem doesn't stop...
On October 20, Sachem Head switches to an active investor filing.
Behind the scenes, the fund's founder, Scott Ferguson, meets with investors in New York,
In this meeting, he makes a statement that the stock could reach $151!! (the current price is about $62 per share)
And here it gets interesting: On October 22, we identified that Concord Generosity initiated coverage on Unique Digital, with a buy rating and a target of $119, approximately 85.9% above the close of $64.03...
(By the way, that same morning we noted another coverage initiation by the same analyst, Joseph Vafi: CleanSpark, with a buy rating, and a target of $20, approximately 145.4% above the close of $8.15.)
And if you're asking what Bitcoin miners have to do with AI, the answer is short:
Electricity and land.
Unique emerged from the mining assets of Celsius, the bankrupt crypto company, and was listed on the Nasdaq only on July 28. Its Texas site deploys approximately 104,000 Nvidia chips, and according to reports, the end customer is Microsoft.
(And CleanSpark, according to TIKR, Concord points to a 20-year lease agreement at its Georgia site, with contractual revenues of approximately $6.6 billion).
(It is important for us to note that CleanSpark's Chief Technology and Operations Officer, Taylor Monnig, sold 33,151 shares since August, for approximately $435,396, but these sales are according to a pre-defined trading plan).
A fund that increases to 9.99% and switches to an active filing, and two days later an investment firm enters with an almost double target, this is exactly the kind of sequence we are noting...
We are monitoring.