{"id":35746,"date":"2025-07-08T14:32:02","date_gmt":"2025-07-08T14:32:02","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=35746"},"modified":"2025-07-08T14:32:02","modified_gmt":"2025-07-08T14:32:02","slug":"core-scientific-cut-to-neutral-as-coreweave-deal-adds-complexity-h-c-wainwright","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=35746","title":{"rendered":"Core Scientific Cut to Neutral as CoreWeave Deal Adds Complexity: H.C. Wainwright"},"content":{"rendered":"<div>\n<p>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&#8217;s r<a href=\"https:\/\/www.coindesk.com\/markets\/2025\/07\/07\/coreweave-to-acquire-core-scientific-in-9b-all-stock-deal\">ecently announced deal<\/a> with AI cloud provider CoreWeave (CRWV).<\/p>\n<p>The brokerage removed its price target on the stock, noting that Core Scientific\u2019s performance is now more tightly linked to CoreWeave\u2019s trajectory. <\/p>\n<p>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.<\/p>\n<p>AI infrastructure firm CoreWeave said Monday it <a href=\"https:\/\/www.businesswire.com\/news\/home\/20250707193803\/en\/CoreWeave-to-Acquire-Core-Scientific\">agreed to buy<\/a> Core Scientific in an all-stock transaction valuing the bitcoin miner at about $20.40 per share, based on recent closing prices.<\/p>\n<p>While the broker continues to view its own Core Scientific sales estimates as conservative, particularly as it hasn\u2019t factored in next year\u2019s planned HPC (high-performance computing) buildout, it flagged several unresolved variables, including outstanding infrastructure procurement.<\/p>\n<p>Still, the firm&#8217;s analysts expect shareholder approval for the transaction, with no indication of delays in the closing timeline.<\/p>\n<p>H.C. Wainwright characterized Core Scientific as carrying \u201cthe inherent high-risk levels of cryptocurrency companies,\u201d citing network hashrate volatility and crypto market fluctuations. <\/p>\n<p>While Core\u2019s diversified operations help offset some of that risk compared with smaller peers, the company now also takes on exposure to CoreWeave\u2019s AI adoption risks, customer concentration and leverage, the report said.<\/p>\n<p>Additional headwinds include potential dilution, mining equipment shortages, increasing regulatory scrutiny and operational hurdles.<\/p>\n<p>On a more positive note, the expected contribution of HPC revenues in future quarters could help reduce the company\u2019s sensitivity to bitcoin price cycles and stabilize results, the report added.<\/p>\n<p><strong><em>Read more: <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/07\/07\/coreweaves-all-stock-bid-for-core-scientific-likely-to-draw-shareholder-scrutiny-kbw\"><span style=\"text-decoration:underline\">CoreWeave\u2019s All-Stock Bid for Core Scientific Likely to Draw Shareholder Scrutiny: KBW<\/span><\/a><\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>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&#8217;s recently announced deal with AI cloud provider CoreWeave (CRWV). The brokerage removed its price target on the stock, noting that Core Scientific\u2019s performance is now more tightly linked to CoreWeave\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-35746","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35746"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/35746\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}