Core Scientific Sale Sets Price Floor for Bitcoin Miners: JPMorgan
AI infrastructure company CoreWeave's (CRWV) acquisition of Core Scientific (CORZ) will raise the floor for Bitcoin's valuation.
BTC mining stocks are valued at $109,185.55, but a repeat is unlikely, Wall Street bank JPMorgan said in a research report on Tuesday.
“As with the company's first HPC deal with CoreWeave, announced last summer, the terms and price of the purchase appear to be unique,” analysts Reginald Smith and Charles Pearce wrote in a note.
CoreWeave said Monday it has agreed to acquire Core Scientific in a deal that values all of the bitcoin mining company's shares at about $20.40 per share based on recent closing prices.
The bank's analysts noted that Core Scientific closed the deal at a discount of about 25% to the deal's terms on the day the acquisition was announced. Given the deal's expected closing by the end of the year, the analysts considered this reasonable.
Broker B.Riley downgraded Core Scientific shares to “neutral” from “buy” and kept their price target unchanged at $17, according to a research report on Wednesday.
The investment firm noted that its target price takes into account the volatility of CoreWeave shares and the expected close of the deal in six months.
Read more: CoreWeave's all-stock offer to buy Core Scientific likely to attract attention from shareholders: KBW
Source: cryptonews.net
