JPMorgan: Core Scientific Sale Lays Down Valuation Floor for Bitcoin Miners
Bitcoin mining firms just received a historic valuation anchor. According to JPMorgan analysts, the CoreWeave acquisition of Core Scientific establishes a new floor valuation for publicly traded Bitcoin miners—even if the deal is a one-off transaction. This milestone could redefine how institutional investors assess the sector.
🔍 Key Highlights
- CoreWeave deal sets the bar: The transaction values Core Scientific at $20.40 per share, signaling to the market that quality mining assets are worth significantly more than current trading levels.
- JPMorgan caution: Analysts Reginald Smith and Charles Pearce acknowledge the deal is likely unique—“a one-off”—so it may not serve as a universal blueprint for other miners .
- Upgrade on comparatives: JPMorgan also flagged Riot Platforms as a potential beneficiary of the new valuation benchmark, noting its infrastructure portfolio is still trading at a meaningful discount .
- Mixed analyst responses: While B.Riley downgraded Core Scientific from ‘buy’ to ‘neutral’, holding its price target steady at $17, this reflects deal complexities and the dilution risk tied to CoreWeave’s volatile share price .
🌐 Broader Outlook
- AI pivot meets crypto legacy: The deal follow-on from Core Scientific’s sale underpins the growing trend of miners morphing into high-performance computing (HPC) hosts. Investors are now valuing their AI and cloud computing potential—not just their hash rate.
- Strategic takeaways: Even if the CoreWeave deal stands alone, it gives investors a fresh lens: mining assets with robust energy contracts and infrastructure access earn premium valuations.
📌 Takeaway for Investors
While JPMorgan advises caution, this transaction hands the market a powerful benchmark. For bitcoin mining stocks trading below the $20‑per‑share level, the CoreWeave deal could trigger renewed interest—and potentially re-rating—especially for operators with comparable infrastructure and power access.