Core Scientific Downgraded to Neutral by H.C. Wainwright Amid CoreWeave Acquisition Uncertainty

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

H.C. Wainwright has shifted its rating on bitcoin miner Core Scientific (CORZ) from “Buy” to “Neutral,” warning that the company’s future has become closely tied to the fate of its pending merger with AI infrastructure firm CoreWeave (CRWV). The firm also removed its price target for Core Scientific, citing new uncertainties tied to the deal.

Despite the downgrade, H.C. Wainwright analysts expect Core Scientific shareholders to vote in favor of the acquisition, and they see no immediate signs of delays that could derail the closing timeline.

At publication time, Core Scientific shares were trading near $15, recovering 1.3% on the day but still down roughly 18% from the announcement earlier in the week. CoreWeave’s stock slipped 2.6%.

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

While H.C. Wainwright said its sales forecasts for Core Scientific are conservative—and do not yet factor in potential revenue from high-performance computing (HPC) plans slated for 2026—the analysts highlighted significant uncertainties, particularly around infrastructure procurement required for the expansion.

The report also cautioned that Core Scientific faces the same high volatility typical of crypto-related businesses, including swings in network hashrate and broader bitcoin market cycles. Although the firm’s diversified business model helps mitigate some risk, the acquisition exposes Core Scientific to new challenges in CoreWeave’s AI-focused operations, such as customer concentration and elevated debt levels.

Additional risks flagged include shareholder dilution, supply chain hurdles for mining equipment, regulatory headwinds, and operational obstacles.

On a more positive note, H.C. Wainwright suggested that the eventual HPC revenue stream could help Core Scientific reduce its dependency on bitcoin’s price and lessen its earnings volatility over time.