Core Scientific Set to Surpass $30 Amid CoreWeave Acquisition Talks: Insights from Cantor Fitzgerald
A recent report from Cantor Fitzgerald suggests that the valuation of Bitcoin miner Core Scientific could soar past $30 due to its pivotal role in AI infrastructure, as it engages in acquisition discussions with CoreWeave.
Key Insights
- Core Scientific may be bought by CoreWeave for over $30 per share, boosted by AI contract earnings and the value of its data centers, according to Cantor Fitzgerald.
- Recent discussions regarding the acquisition have led to a rise in Core Scientific’s shares, which increased by 33% to over $16.
- Transitioning from Bitcoin mining to AI infrastructure is perceived to be more lucrative, although some companies have struggled with this shift.
In a recent research note published Thursday, Cantor Fitzgerald noted that Core Scientific (CORZ) could reach over $30 per share in a potential acquisition by CoreWeave, driven by the anticipated cash flows from its AI contracts and the current value of its data centers.
This valuation would nearly double from its current price of just above $16.
Core Scientific
The analysis follows a report from The Wall Street Journal indicating that CoreWeave, a cloud AI computing company, is again in advanced discussions to acquire Core Scientific, succeeding a previous unsuccessful bid of $5.75 per share in 2024.
Cantor believes that CORZ’s current trading price significantly underestimates the company’s true value.
At the core of the positive outlook is a 12-year, $3.5 billion infrastructure lease signed with CoreWeave in 2024, aimed at supplying 200 megawatts of AI capacity.
The Transition to AI
This shift is not just favored by Cantor. Rittenhouse Research, another firm focused on fintech and AI, has argued that instead of focusing on Bitcoin, the most successful crypto entities are pivoting towards providing AI infrastructure.
The future profitability of Bitcoin mining is challenged by the volatility of BTC prices and the complexities involved in mining technology advancements.
The market’s perception of Core Scientific’s potential pivot aligns with the broader trend, as firms strive to leverage their computational capabilities for the lucrative AI infrastructure market.
It remains to be seen if CoreWeave or Core Scientific will publicly comment on these developments.
