Core Scientific Transaction Defines Floor Price for Crypto Miners, According to JPMorgan

JPMorgan: CoreWeave’s Core Scientific Deal Sets a Valuation Benchmark but Unlikely to Be Repeated

CoreWeave’s acquisition of bitcoin mining firm Core Scientific (CORZ) could raise the valuation floor for crypto mining companies, according to a recent research note from JPMorgan. However, analysts caution that the deal appears to be a unique case rather than the beginning of a broader trend.

“The structure and pricing of this transaction, much like Core Scientific’s prior high-performance computing (HPC) partnership with CoreWeave last summer, seem highly specific and are unlikely to be replicated,” analysts Reginald Smith and Charles Pearce wrote in Tuesday’s note.

The all-stock deal, announced Monday, values Core Scientific at approximately $20.40 per share, based on CoreWeave’s latest closing price.

Despite the premium, Core Scientific’s stock closed roughly 25% below the offer price, reflecting investor skepticism over the deal’s completion timeline and terms. With the acquisition expected to close by year-end, JPMorgan sees the market discount as warranted.

In a separate report issued Wednesday, B. Riley downgraded Core Scientific from “buy” to “neutral,” maintaining a $17 price target. The firm pointed to uncertainty over CoreWeave’s stock performance and the extended six-month window before the deal closes as reasons for the revised rating.