Core Scientific’s Sale Sets New Minimum Value for Bitcoin Miners, JPMorgan Reports

JPMorgan: CoreWeave’s Core Scientific Deal Establishes Valuation Benchmark but Unlikely to Become Trend

CoreWeave’s plan to acquire bitcoin mining company Core Scientific (CORZ) could set a new valuation benchmark for the crypto mining sector, according to a research note from JPMorgan. However, analysts believe this transaction is an isolated event rather than the start of a broader wave of similar deals.

“The structure and price of this transaction, similar to Core Scientific’s earlier high-performance computing (HPC) agreement with CoreWeave last summer, appear highly specific and are unlikely to become a recurring model,” wrote analysts Reginald Smith and Charles Pearce in Tuesday’s report.

On Monday, CoreWeave announced it would purchase Core Scientific in an all-stock deal valuing the miner at roughly $20.40 per share, based on CoreWeave’s most recent closing price.

Despite the premium implied by the offer, Core Scientific shares ended Monday about 25% below the proposed acquisition price. JPMorgan analysts said this discount seems justified given the deal’s anticipated year-end closing and lingering uncertainties.

Separately, B. Riley on Wednesday downgraded Core Scientific from “buy” to “neutral,” maintaining its $17 price target. The firm cited concerns over the volatility of CoreWeave’s stock and the lengthy six-month timeline for the deal’s completion.