AI infrastructure firm CoreWeave’s (CRWV) deal to acquire Core Scientific (CORZ) will raise the valuation floor for bitcoin
mining stocks but is unlikely to be replicated, Wall Street bank JPMorgan stated 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 stated Monday it had agreed to acquire 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-conclude projected close, the analysts stated this seemed appropriate.
B.Riley downgraded Core Scientific from acquire to neutral with an unalterd $17 price tarreceive, the broker stated in a research report Wednesday.
The investment firm stated its price tarreceive takes into account the volatility in CoreWeave shares and the 6-month projected close for the deal.
Read more: CoreWeave’s All-Stock Bid for Core Scientific Likely to Draw Shareholder Scrutiny: KBW
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