Core Scientific Sees Neutral Call from H.C. Wainwright as CoreWeave Deal Raises New Questions

Core Scientific Downgraded by H.C. Wainwright Over Risks From CoreWeave Merger

Investment bank H.C. Wainwright has lowered its rating on bitcoin miner Core Scientific (CORZ) from “Buy” to “Neutral,” citing heightened risks associated with the company’s proposed acquisition by AI infrastructure firm CoreWeave (CRWV). The bank also withdrew its price target, reflecting uncertainty about Core Scientific’s outlook after the merger.

Despite the downgrade, analysts expect shareholders to approve the all-stock deal and don’t see signs of delays in closing.

Core Scientific’s shares were trading around $15 at the time of publication, gaining 1.3% for the day but still down about 18% since news of the acquisition. CoreWeave’s stock dropped 2.6%.

The deal values Core Scientific at approximately $20.40 per share, based on recent market prices.

While H.C. Wainwright noted that its revenue estimates for Core Scientific remain conservative—and don’t yet include potential gains from the company’s planned high-performance computing (HPC) expansion in 2026—the analysts pointed out significant unknowns, such as the need for major infrastructure investment to execute that plan.

The report highlighted that Core Scientific remains exposed to the high volatility of the cryptocurrency sector, including swings in network hashrate and bitcoin’s price. Although Core Scientific’s diversified operations help manage some of that risk, the merger introduces fresh exposure to challenges within CoreWeave’s AI-focused business, such as customer concentration and higher debt levels.

Additional risks include the potential for shareholder dilution, supply chain disruptions for mining equipment, regulatory pressures, and operational difficulties.

Still, H.C. Wainwright suggested that revenue from HPC operations could eventually help stabilize Core Scientific’s earnings, making the business less dependent on bitcoin price cycles.