JPMorgan: CoreWeave–Core Scientific Deal Lifts Valuation Floor, But Unlikely to Be Repeated

AI infrastructure company CoreWeave’s agreement to acquire bitcoin miner Core Scientific (CORZ) will likely raise the valuation floor for crypto mining stocks, according to a JPMorgan research note published Tuesday. However, the bank said the deal appears to be a one-off and not part of a broader trend.

“Much like Core Scientific’s earlier high-performance computing (HPC) agreement with CoreWeave last summer, the structure and purchase price look unique and unlikely to be repeated,” analysts Reginald Smith and Charles Pearce wrote.

On Monday, CoreWeave announced it would acquire Core Scientific in an all-stock transaction that values the miner at approximately $20.40 per share, based on recent closing prices.

Despite the premium, Core Scientific shares closed roughly 25% below the offer price on the day the deal was announced. JPMorgan analysts noted that, with a projected year-end close, the market’s discount appears justified.

In a separate note on Wednesday, B. Riley downgraded Core Scientific from “buy” to “neutral”, while maintaining its $17 price target. The firm cited uncertainty around CoreWeave’s stock price and the deal’s six-month timeline as key factors in its valuation stance.