In an intriguing twist that has captured the attention of crypto investors, Core Scientific (NASDAQ: CORZ) is once again at the center of acquisition discussions with cloud computing heavyweight CoreWeave. Market watchers are buzzing over Cantor Fitzgerald’s recent research note suggesting that Core Scientific’s shares could soar past $30, nearly doubling from their current price just above $16. The note comes on the heels of a Wall Street Journal report indicating that CoreWeave is revisiting its acquisition ambitions after a previous bid of $5.75 per share fell through in 2024.
Core Scientific’s AI Ambitions
Cantor Fitzgerald’s optimism is rooted in Core Scientific’s strategic pivot toward artificial intelligence infrastructure. At the heart of this potential valuation surge is a lucrative 12-year, $3.5 billion infrastructure lease with CoreWeave, signed last year. This deal commits Core Scientific to provide 200 megawatts of AI capacity, a move that Cantor values at $24 per share, using a conservative 15x profit multiple typical for traditional data center REITs. Adding to this is the replacement value of Core Scientific’s extensive 570MW power infrastructure, estimated at $11.70 per share.
But here’s the catch: it’s not just Cantor that sees the potential in shifting from Bitcoin mining to AI. Rittenhouse Research, a fintech and AI-focused firm, recently highlighted a broader industry trend—crypto companies are increasingly redirecting their computational power from the volatility of Bitcoin mining to the more stable, and potentially lucrative, AI sector. The shift comes as the demand for AI infrastructure skyrockets, fueled by advancements like ChatGPT and other large language models. This trend is also evident in other companies’ strategies, as seen in Bit Digital’s recent pivot to Ethereum staking.
The Crypto to AI Transition
The rationale behind this pivot is clear. Unlike Bitcoin mining, which faces revenue drops every four years due to halvings and is intricately tied to Bitcoin’s erratic price cycles, AI infrastructure promises more predictable, long-term cash flows. “The infrastructure used to mine digital gold is better used to process AI algorithms,” Rittenhouse noted, underscoring the rising sentiment that AI could offer a more sustainable business model.
However, not all companies attempting this pivot have seen success. Bit Digital’s decision to sell off its Bitcoin rigs in favor of Ethereum staking led to a 15% drop in its stock last week. Similarly, Canaan’s effort to diversify into AI hardware faltered, resulting in the closure of its chip unit and a staggering 75% decline in its share price over the past six months.
The Path Forward
Yet, Core Scientific seems positioned differently. Leveraging its existing mining infrastructure, it appears poised to capitalize on the booming AI demand, which is projected to exceed $100 billion. If Cantor’s predictions materialize, CoreWeave’s renewed offer for Core Scientific could set a new standard for the sector, highlighting the potential for crypto firms to pivot successfully to AI. This potential shift is reminiscent of other ambitious goals in the industry, such as those discussed in Semler Scientific’s recent strategic moves.
The implications of such a deal extend beyond Core Scientific’s immediate future. It could serve as a bellwether for other companies in the crypto mining space contemplating similar transitions. The outcome of these discussions—if they lead to a successful acquisition—might just chart a new course for how these firms can sustainably grow amidst the evolving landscape of digital technology.
Neither CoreWeave nor Core Scientific has publicly commented on the ongoing discussions, leaving industry observers speculating on what the final terms might entail. One thing’s for sure: the crypto world will be watching closely as this narrative unfolds, eager to see if Cantor’s bullish outlook will indeed come to fruition.
Source
This article is based on: Core Scientific Could Top $30 on CoreWeave Buyout Deal: Cantor Fitzgerald
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
