AI infrastructure firm CoreWeave’s (CRWV) deal to buy Core Scientific (CORZ) will raise the valuation floor for bitcoin
BTC$109,185.55 mining stocks but is unlikely to be replicated, Wall Street bank JPMorgan said in a research report Tuesday.
“Much like the company’s first HPC deal with CoreWeave announced last summer, the terms and purchase price appear to be a one-off,” analysts Reginald Smith and Charles Pearce wrote.
CoreWeave said Monday it had agreed to buy Core Scientific in an all-stock transaction valuing the bitcoin miner at about $20.40 per share, based on recent closing prices.
The bank’s analysts noted that Core Scientific closed at around a 25% discount to the deal terms the day the takeover was announced. Given the year-end projected close, the analysts said this seemed appropriate.
B.Riley downgraded Core Scientific from buy to neutral with an unchanged $17 price target, the broker said in a research report Wednesday.
The investment firm said its price target takes into account the volatility in CoreWeave shares and the 6-month projected close for the deal.