Core Scientific’s Potential $30+ Buyout—Why Analysts See Big Upside
Late Thursday, Cantor Fitzgerald dropped a research note suggesting Core Scientific (CORZ) could be worth over $30 per share in a buyout by CoreWeave. That’s nearly double its current price, which barely cleared $16 after a 33% surge the same day.
The note followed a *Wall Street Journal* report that CoreWeave—a major player in cloud AI computing—is back at the negotiating table after a failed $5.75-per-share bid last year. Cantor thinks even Thursday’s jump undervalues Core Scientific by at least half.
So what’s driving the optimism? A lot hinges on that 12-year, $3.5 billion deal Core Scientific signed with CoreWeave in 2024 to supply 200 megawatts of AI capacity. Cantor values that contract at roughly $24 per share, using a conservative 15x profit multiple (typical for data center REITs). Throw in another $11.70 per share for the company’s power infrastructure—570 megawatts’ worth—and the math starts making sense.
The Bitcoin-to-AI Shift Gains Steam
Cantor isn’t alone in arguing that bitcoin mining infrastructure might be better suited for AI. Back in May, Rittenhouse Research made a similar case, noting that the most successful crypto firms aren’t sticking with Bitcoin—they’re pivoting to AI.
Take Galaxy Digital’s 2022 purchase of the Helios data center. At the time, it looked like a bailout of a struggling miner. Turns out, it was a smart bet on AI demand, especially after the ChatGPT boom sent data center needs skyrocketing.
“The infrastructure used to mine digital gold is better used to process AI algorithms,” Rittenhouse wrote. The logic? AI offers steadier cash flow than Bitcoin mining, which gets hammered every four years by halvings and bitcoin’s wild price swings.
There’s another problem for miners: staying profitable means constantly designing more efficient chips to offset halving effects. That’s getting harder as semiconductor improvements slow down.
Not Every Pivot Works Out
Still, ditching Bitcoin doesn’t guarantee success. Bit Digital recently offloaded its mining rigs to focus on Ethereum staking—and its stock dropped 15% in a day. Canaan tried shifting into AI chips but shut down the unit after failing to gain traction. Its shares are down 75% in six months.
Core Scientific, though, might be threading the needle. Its mining-built infrastructure positions it well for the AI boom, which some estimate could top $100 billion. If Cantor’s right, CoreWeave’s next offer could be far richer than last year’s—and set a new template for the industry.
Neither company has commented yet. But if the deal happens, it could signal where the real money’s moving.
