Core Scientific Stock Upgraded as Standalone Prospects Outweigh Acquisition Hopes

Analyst Upgrade Amid Shifting Acquisition Landscape

Roth Capital Partners has reportedly upgraded Core Scientific shares from neutral to buy, according to recent analyst reports, even as the potential acquisition by CoreWeave appears less likely. Analyst Darren Aftahi simultaneously raised his 12-month price target to $23.50 from $17, suggesting a potential 32% gain based on the company’s standalone prospects.

Deal Prospects Diminish

The upgrade comes after CoreWeave indicated it would not increase its acquisition offer for Core Scientific, with sources describing the deal as “nice to have, not a need to have” according to the analysis. Aftahi stated in his report that “we now assume no CORZ-CRWV deal and no renegotiation,” significantly lowering expectations for the acquisition that had previously driven investor interest.

Standalone Value Proposition

With the acquisition apparently off the table, analysts suggest Core Scientific has reverted to what they describe as a “standalone thesis” focused on contracting out its additional power pipeline to other tenants. The company‘s substantial infrastructure—reportedly including data centers across six U.S. states with total contracted power capacity of approximately 1.3GW—positions it to capitalize on growing demand for high-performance computing resources.

Aftahi’s analysis indicates the revised valuation reflects “a mix of discounted NPV to its CRWV lease, approximately 700MW of uncontracted power and its remaining BTC power, as well as weight for recent dollar-per-watt M&A transactions.” This suggests the investment firm sees significant untapped value in Core Scientific’s ability to lease its power capacity primarily for HPC applications, including AI workloads and bitcoin mining operations.

Market Performance and Industry Context

Core Scientific shares have reportedly surged 27% year-to-date, demonstrating investor confidence despite the uncertain acquisition outlook. The company operates as one of the largest owners and operators of digital infrastructure supporting high-performance computing applications, positioning it at the intersection of two rapidly growing sectors: artificial intelligence and cryptocurrency mining.

The analyst’s optimistic standalone assessment reflects broader industry trends where companies with substantial power capacity and data center infrastructure are becoming increasingly valuable as demand for computational resources continues to expand across multiple technology sectors.

Disclaimer: This article reports on analyst recommendations and market developments. It does not constitute financial advice, and readers should conduct their own research before making investment decisions.

References

• http://en.wikipedia.org/wiki/High-performance_computing
• http://en.wikipedia.org/wiki/Roth_Capital_Partners
• http://en.wikipedia.org/wiki/Bitcoin_network
• http://en.wikipedia.org/wiki/Data_center
• http://en.wikipedia.org/wiki/Pipeline_transport

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