H.C. Wainwright Downgrades Core Scientific to Neutral, Citing Risks Tied to CoreWeave Deal

H.C. Wainwright has downgraded bitcoin miner Core Scientific (CORZ) from “Buy” to “Neutral,” pointing to increased risk following the company’s recently announced acquisition by AI infrastructure firm CoreWeave (CRWV). The brokerage also withdrew its price target, noting that Core Scientific’s outlook is now heavily dependent on CoreWeave’s performance.

Despite the downgrade, H.C. Wainwright analysts expect shareholders to approve the deal, and they see no current signs of delay in the closing timeline.

Core Scientific shares were trading around $15 at the time of publication, up 1.3% on the day but still reeling from an 18% drop following Monday’s announcement. CoreWeave shares slipped 2.6%.

The all-stock transaction values Core Scientific at roughly $20.40 per share based on recent prices.

Although H.C. Wainwright views its own sales projections for Core Scientific as conservative—especially as they don’t yet factor in the company’s planned high-performance computing (HPC) expansion next year—it highlighted several uncertainties, including pending infrastructure procurement.

The analysts emphasized that Core Scientific remains exposed to the high-risk profile typical of crypto firms, including network hashrate swings and overall market volatility. While the company’s diversified operations help mitigate some of that risk, the merger adds new exposure to CoreWeave’s AI sector vulnerabilities—such as heavy customer concentration and financial leverage.

Other concerns flagged in the report include potential shareholder dilution, supply-chain constraints for mining equipment, tighter regulatory pressures, and operational challenges.

On the upside, H.C. Wainwright noted that future HPC revenue could help stabilize Core Scientific’s performance, making it less reliant on bitcoin price cycles and reducing earnings volatility over time.

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