Share this article
Core Scientific Cut to Neutral as CoreWeave Deal Adds Complexity: H.C. Wainwright
The firm's analysts expect shareholder approval for the transaction, with no indication of delays to the closing timeline.
Jul 8, 2025, 1:53 p.m.
What to know:
- H.C. Wainwright cut Core Scientific to neutral from buy after CoreWeave agreed to acquire the bitcoin miner in an all-share deal.
- Core Scientific’s performance is now more tightly linked to CoreWeave’s trajectory, the report said.
- The broker said the deal is expected to receive shareholder approval.
Shares of bitcoin miner Core Scientific (CORZ) were downgraded to neutral from buy by broker H.C. Wainwright, which cited heightened risk exposure following the company's recently announced deal with AI cloud provider CoreWeave (CRWV).
The brokerage removed its price target on the stock, noting that Core Scientific’s performance is now more tightly linked to CoreWeave’s trajectory.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Core Scientific shares were 1.3% higher at publication time, trading around $15. The stock fell 18% yesterday following news of the deal. CoreWeave was 2.6% lower.
AI infrastructure firm CoreWeave said Monday it agreed to buy Core Scientific in an all-stock transaction valuing the bitcoin miner at about $20.40 per share, based on recent closing prices.
While the broker continues to view its own Core Scientific sales estimates as conservative, particularly as it hasn’t factored in next year’s planned HPC (high-performance computing) buildout, it flagged several unresolved variables, including outstanding infrastructure procurement.
Still, the firm's analysts expect shareholder approval for the transaction, with no indication of delays in the closing timeline.
H.C. Wainwright characterized Core Scientific as carrying “the inherent high-risk levels of cryptocurrency companies,” citing network hashrate volatility and crypto market fluctuations.
While Core’s diversified operations help offset some of that risk compared with smaller peers, the company now also takes on exposure to CoreWeave’s AI adoption risks, customer concentration and leverage, the report said.
Additional headwinds include potential dilution, mining equipment shortages, increasing regulatory scrutiny and operational hurdles.
On a more positive note, the expected contribution of HPC revenues in future quarters could help reduce the company’s sensitivity to bitcoin price cycles and stabilize results, the report added.
Read more: CoreWeave’s All-Stock Bid for Core Scientific Likely to Draw Shareholder Scrutiny: KBW
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Zcash Floats Dynamic Fee Plan to Ensure Users Won’t Be Priced Out
ZEC zoomed 12% amid the fee discussion, beating gains across all major tokens.
What to know:
- A new proposal by Shielded Labs suggests a dynamic fee market for Zcash to address rising transaction costs and network congestion.
- The proposed system uses a median fee per action observed over the prior 50 blocks, with a priority lane for high-demand periods.
- The changes aim to maintain Zcash's privacy features while avoiding complex protocol redesigns.
Top Stories
