Hedge Funds
Sachem Head's Ferguson puts $151 target on Ionic Digital as ex-miner pivots to AI data centres
The activist, which holds about 9.9% of the Celsius spin-out, sees close to 140% upside from a share price near $63.
HedgeWeekly Hedge Fund Desk ·
Scott Ferguson, founder of activist hedge fund Sachem Head Capital Management, told the 13D Monitor Active-Passive Investor Summit in New York this week that Ionic Digital shares could reach $151. With the stock trading at about $63, that implies a gain of nearly 140%, according to Reuters.
Ionic was created out of the bankruptcy restructuring of crypto lender Celsius Network and listed on Nasdaq in July. The former bitcoin miner is repositioning itself as a landlord for AI data-centre capacity. Its Ward County, Texas site carries a 10-year triple-net lease, extendable by a further decade, to London-based AI infrastructure firm Nscale, and Ferguson said Microsoft is the ultimate customer there.
Sachem Head holds roughly 9.9% of the company and said it would set out its ownership in an SEC filing on Wednesday. It came in through a $400m private placement in June alongside Oaktree Capital Management and Attestor Capital. Ferguson pointed to further build-out at Ward County and new sites in Midland, Texas, as potential value drivers, voiced support for management and left room for a more hands-on role in strategy.
Why it matters: activists are increasingly using post-restructuring equities as an entry point into the AI infrastructure trade, where long-dated leases to hyperscaler-linked tenants can re-rate a stock quickly. For allocators, the position also shows how event-driven managers are pairing private placements with credit specialists such as Oaktree and Attestor, adding a layer of liquidity and concentration risk to activist books.