Jefferies has initiated coverage of Ionic Digital Inc. with a buy recommendation and a price target of $85.00, representing a potential 24% increase from the current trading price of $68.73.
The firm’s analysis highlights Ionic Digital’s financial position, with $587 million in liquidity and no debt, positioning it uniquely among companies emerging from the crypto sector. Ionic Digital transitioned from Bitcoin mining to AI-focused digital infrastructure leasing following the bankruptcy of Celsius Mining, a move that has reshaped its revenue profile.
In the second quarter of 2026, Ionic Digital reported total revenue of $48.6 million, a 30.6% year-over-year increase from $37.2 million in the prior period. Adjusted EBITDA reached $37.6 million, reflecting the company’s strategic pivot. The firm’s market capitalization stands at $3.09 billion, with shares trading near a 52-week high of $71.90.
The company’s lease agreement with Nscale, structured as a triple-net arrangement, includes tenant-funded capital expenditures of approximately $10 million. This lease secures $1.95 billion in contracted revenue, supported by an equity-free credit guarantee with investment-grade protection, eliminating the need for equity dilution.
Jefferies identified single-tenant concentration as the primary risk to Ionic Digital’s business model, underscoring the importance of its lease agreements in driving future growth.
