Sachem Head's Scott Ferguson Sets $151 Target for Ionic Digital Shares

Scott Ferguson, managing partner of Sachem Head Capital Management, set a $151 target for Ionic Digital Inc. (IOND) shares at the 13D Monitor Active-Passive Investor Summit in New York on Tuesday, Oct. 20. His scheduled session was at 4 p.m. ET (20:00 UTC). The target is about 130% above Ionic’s $65.62 closing price that day. Ferguson also said, “We think management is pretty good.”

The target came as Ionic shifts from Bitcoin (BTC) mining toward digital infrastructure leasing, including its move toward AI data centers. Its agreement with Nscale Ward County LLC covers 234 MW at a Ward County, Texas, site under a 126-month triple-net lease. The contract includes about $1.95 billion in contracted revenue and an option to extend the lease for 10 years. The extra decade is optional; the initial term is 126 months.

Ionic is working toward expanding Ward County capacity to 700 MW by the end of 2027, subject to approval from the Electric Reliability Council of Texas (ERCOT) and two utility projects. The 234 MW in the Nscale agreement is the capacity covered by the current lease; 700 MW is a separate expansion goal. The company is also seeking to convert its four Midland-area sites for artificial intelligence (AI) workloads. Those sites have a combined 112 MW of capacity.

Digital infrastructure leasing accounted for 90% of Ionic’s $48.6 million in second-quarter 2026 revenue. The quarter ended June 30. The business had one customer as of July 20, making customer concentration a factor as Ionic pursues expansion.

Ionic announced a $400 million private placement on June 26 at a $2 billion pre-money equity valuation, set before the new capital was added. The round was led by Sachem Head, Attestor and Oaktree, with Citadel and Weiss Asset Management also taking part.

Sachem Head’s Oct. 9 ownership filing disclosed beneficial ownership of 4,500,125 Ionic shares, or 9.99%, based on holdings as of Sept. 30. Direct holdings accounted for 4,450,000 shares; warrants accounted for the remaining 50,125 shares in the reported stake. Another 855,533 warrant shares were excluded under a 9.99% ownership limit. The filing stated that the stake was not held for the purpose of influencing control of Ionic.