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Core Scientific (CORZ) Stock Price Could Double to $30 on AI Pivot & CoreWeave Buyout, Analyst Says | Flash News Detail | Blockchain.News
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7/4/2025 8:59:59 PM

Core Scientific (CORZ) Stock Price Could Double to $30 on AI Pivot & CoreWeave Buyout, Analyst Says

Core Scientific (CORZ) Stock Price Could Double to $30 on AI Pivot & CoreWeave Buyout, Analyst Says

According to @DeepLearningAI, financial services firm Cantor Fitzgerald has issued a research note suggesting that Bitcoin (BTC) miner Core Scientific's (CORZ) stock could surpass $30 per share in a potential acquisition by AI cloud provider CoreWeave. This valuation represents a near-doubling of its current price, which recently surged 33% following a report from The Wall Street Journal about advanced buyout talks. Cantor Fitzgerald's bullish case is built on two key factors: valuing the 12-year, $3.5 billion AI infrastructure lease between the two companies at $24 per share, and adding $11.70 per share for the replacement value of CORZ's power infrastructure. This move is part of a broader trend where crypto miners like HIVE Digital (HIVE), which is purchasing a 7.2 MW data center in Toronto for AI, are pivoting their infrastructure towards more stable, long-term AI-related revenue streams. However, the report also notes that not all pivots are successful, citing the negative market reaction to Bit Digital's shift to Ethereum staking and Canaan's failed AI chip unit.

Source

Analysis

The convergence of artificial intelligence and cryptocurrency infrastructure is accelerating, creating significant trading opportunities and reshaping the business models of traditional digital asset miners. Two major players, HIVE Digital Technologies (HIVE) and Core Scientific (CORZ), are at the forefront of this pivot, leveraging their vast energy and data center footprints to capture the explosive demand for AI compute power. This strategic shift is not just a diversification play; it's a fundamental revaluation of assets, as highlighted by recent market-moving news and analyst reports.



The Great Pivot: From Mining Rigs to AI Clusters


HIVE Digital is making a decisive move to establish a sovereign AI presence in Canada. The company recently announced an agreement to purchase a 7.2-megawatt data center in Toronto, which it plans to transform into a Tier 3 facility operated by its subsidiary, BUZZ HPC. This site is engineered for the future, with plans to support liquid cooling and host up to 5,000 next-generation GPUs. According to Craig Tavares, president of BUZZ HPC, this initiative is critical for developing a sovereign AI data center that ensures “data residency, security, and national innovation leadership” for Canada. This move taps into the global geopolitical trend of building national AI infrastructure, a race that promises sustained, government-backed demand for high-performance computing (HPC) services.



Meanwhile, Core Scientific is experiencing a dramatic re-rating from the market following renewed acquisition interest from AI cloud provider CoreWeave. According to a report from The Wall Street Journal, CoreWeave is in advanced talks to acquire the bitcoin miner, a stark contrast to its failed $5.75 per share offer in 2024. The news sent CORZ shares soaring 33% to close above $16 on Thursday. However, analysts at Cantor Fitzgerald believe the stock is still significantly undervalued. In a research note, the firm posited a potential acquisition price of over $30 per share, representing nearly a 100% upside from current levels. This bullish thesis is built on tangible assets and long-term cash flows, a narrative that resonates strongly with institutional investors.



Deconstructing the Valuation: Why CORZ Could Double


Cantor Fitzgerald's valuation model provides a clear blueprint for how to value these hybrid AI-crypto companies. The firm assigns a value of $24 per share to the 12-year, $3.5 billion infrastructure contract Core Scientific signed with CoreWeave to provide 200 megawatts of AI capacity. This valuation uses a conservative 15x profit multiple, typical for stable data center REITs. On top of that, Cantor adds another $11.70 per share for the replacement value of CORZ's remaining 570MW of power infrastructure. This two-pronged approach—valuing both contracted cash flows and physical assets—suggests a deep well of untapped value that the market is only beginning to recognize.



This perspective is echoed by fintech firm Rittenhouse Research, which argued in a May report that the most successful crypto companies are pivoting to become AI infrastructure providers. They noted that “the infrastructure used to mine digital gold is better used to process AI algorithms,” citing the stable, long-term revenue from AI contracts versus the high volatility and cyclical revenue shocks of Bitcoin mining, which is subject to halvings and BTC price fluctuations. However, the path is not without peril. Bit Digital's pivot to Ethereum staking was met with a 15% stock decline, and hardware manufacturer Canaan shuttered its AI chip unit after failing to gain traction, with its stock plummeting nearly 75% in six months. The success of Core Scientific, therefore, could establish a critical and potentially lucrative blueprint for how to successfully bridge the worlds of crypto mining and artificial intelligence, offering traders a clear distinction between winning and losing strategies in this emerging sector.

DeepLearning.AI

@DeepLearningAI

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