Clear Street sees positive read to others in space on Core Scientific deal value

After Core Scientific (CORZ) announced an agreement to be acquired by CoreWeave (CRWV) in an all-stock transaction, Clear Street analyst Brian Dobson called the deal “a major vote of confidence” in Core Scientific’s infrastructure strategy as well as “a validation of powered land as a high-value asset in the AI compute stack.” The firm views the deal valuation as a positive read-through for Riot Platforms (RIOT), Cipher Mining (CIFR) and Hut 8 (HUT), the analyst added. The firm has a Buy rating and $20 price target on Core Scientific, noting that shares are down approximately 20%, which it attributes to investors’ concern that CoreWeave may trade lower by the time the deal is completed, reducing the effective value of the all-stock transaction.