Blackstone Group (BX) stock was down on Monday after the asset management firm announced a new initial public offering (IPO) for data center investment vehicle Blackstone Digital Infrastructure Trust. The company will offer 87.5 million shares via this IPO for $20 each, bringing the total value of the offering to $1.75 billion.
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Blackstone Digital Infrastructure Trust is a real estate investment trust (REIT) that will focus on buying newly-constructed data centers. Blackstone Group’s interest in the data center sector makes sense, as the demand for these locations has skyrocketed alongside the artificial intelligence (AI) boom. The launch of the Blackstone Digital Infrastructure Trust IPO suggests that Blackstone Group has high long-term expectations for the industry.
Investors will note that Blackstone Digital Infrastructure Trust intends to trade under the BXDC stock ticker. The company also seeks to be recognized as a REIT for tax purposes. Traders will also keep in mind that the REIT doesn’t currently own any data center assets, making it a blind pool. The company will also have a 9.8% limit on ownership of its shares.
Blackstone Digital Infrastructure Trust’s Mission Statement
Blackstone Digital Infrastructure Trust stated in its IPO that, “Our strategy focuses on essential digital infrastructure assets that serve as the backbone for cloud computing, artificial intelligence (“AI”), and the broader digital transformation driving economic growth. With an estimated $1 trillion total addressable stabilized data center market expected over the next five years, we believe the industry represents a substantial investment opportunity.”
How Blackstone Group Stock Reacted Today
Blackstone Group stock was down 1.07% in pre-market trading on Monday, following a slight rally on Friday. The stock has fallen 17.08% year-to-date and 7.17% over the past 12 months.
Is Blackstone Group Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Blackstone Group is Moderate Buy, based on eight Buy and five Hold ratings over the past three months. With that comes an average BX stock price target of $145.46, representing a potential 15.13% upside for the shares.
