Core Scientific Cut to Neutral as CoreWeave Deal Adds Complexity: H.C. Wainwright
2025-07-08 14:33:26
Main Idea
H.C. Wainwright downgraded Core Scientific (CORZ) to neutral due to increased complexity from its deal with CoreWeave (CRWV), citing risks tied to cryptocurrency and AI adoption.
Key Points
1. Core Scientific shares were downgraded to neutral by H.C. Wainwright following its deal with AI cloud provider CoreWeave.
2. The brokerage cited inherent high-risk levels of cryptocurrency companies and concerns over CoreWeave’s AI adoption risks, customer concentration, and leverage.
3. Core Scientific shares rose 1.3% to around $15 at publication time, after an 18% drop the previous day.
4. H.C. Wainwright noted the deal's conservative valuation and did not factor in next year’s planned high-performance computing (HPC) timeline.
5. The report acknowledged potential future contributions from HPC revenues but emphasized the transaction's complexity and risks.
Description
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 r ecently 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. Core Scientific shares were 1.3% higher at publication time, trading around $15. The stock fell 18% yesterday foll...
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