AI infrastructure steadfast CoreWeave's (CRWV) woody to bargain Core Scientific (CORZ) volition rise the valuation level for bitcoin (BTC) mining stocks but is improbable to beryllium replicated, Wall Street slope JPMorgan said successful a probe study Tuesday.
"Much similar the company’s archetypal HPC woody with CoreWeave announced past summer, the presumption and acquisition terms look to beryllium a one-off," analysts Reginald Smith and Charles Pearce wrote.
CoreWeave said Monday it had agreed to buy Core Scientific successful an all-stock transaction valuing the bitcoin miner astatine astir $20.40 per share, based connected caller closing prices.
The bank's analysts noted that Core Scientific closed astatine astir a 25% discount to the woody presumption the time the takeover was announced. Given the year-end projected close, the analysts said this seemed appropriate.
B.Riley downgraded Core Scientific from bargain to neutral with an unchanged $17 terms target, the broker said successful a probe study Wednesday.
The concern steadfast said its terms people takes into relationship the volatility successful CoreWeave shares and the 6-month projected adjacent for the deal.
Read more: CoreWeave's All-Stock Bid for Core Scientific Likely to Draw Shareholder Scrutiny: KBW