JPMorgan: CoreWeave’s Acquisition of Core Scientific Raises Valuation Floor but May Not Spark Trend
The recent deal for CoreWeave to acquire bitcoin miner Core Scientific (CORZ) could help set a new valuation baseline for crypto mining companies, according to a note from JPMorgan. Still, analysts believe the transaction is likely a one-off rather than a sign of widespread consolidation ahead.
“This deal, much like Core Scientific’s earlier high-performance computing (HPC) arrangement with CoreWeave last summer, appears unique in both structure and pricing and isn’t likely to become a pattern,” wrote analysts Reginald Smith and Charles Pearce on Tuesday.
CoreWeave announced Monday that it plans to purchase Core Scientific in an all-stock transaction valuing the mining firm at around $20.40 per share, based on CoreWeave’s latest closing price.
Despite the offer’s premium, Core Scientific’s shares ended the day roughly 25% below the proposed deal price, reflecting market caution over the transaction’s terms and timeline. JPMorgan noted that, given the expected year-end closing date, the discount appears justified.
Separately on Wednesday, B. Riley downgraded Core Scientific from “buy” to “neutral,” maintaining its $17 price target. The firm cited uncertainty surrounding CoreWeave’s share performance and the deal’s six-month timeline as reasons for the revised outlook.
