Macquarie Downgrades Core Scientific to Neutral Following Acquisition by CoreWeave

Macquarie downgraded Core Scientific to Neutral from Outperform with a $15 price target, following the company's agreement to be acquired by CoreWeave in an all-stock transaction.

Macquarie Bank has revised its rating on Core Scientific from Outperform to Neutral, setting a new price target of $15, following the company's agreement to be acquired by CoreWeave in an all-stock transaction. The acquisition, valued at approximately $9 billion, aims to expand CoreWeave's data center footprint and enhance its AI and high-performance computing (HPC) capabilities [1].

The deal, announced on July 7, 2025, involves CoreWeave acquiring Core Scientific's data center infrastructure, which includes approximately 1.3 gigawatts (GW) of gross power capacity. This acquisition is expected to eliminate over $10 billion in future lease costs and generate $500 million in annual cost savings by 2027 [1]. The acquisition is subject to regulatory approval and is expected to close in the fourth quarter of 2025.

Macquarie's downgrade reflects the potential dilution of Core Scientific shareholders, who will own less than 10% of the combined company post-acquisition. The investment bank also noted that the deal could be approximately 5% accretive to earnings per share based on projected net annual savings [2]. Additionally, the acquisition opens up possibilities for CoreWeave to repurpose crypto capacity for HPC workloads or potentially divest it, addressing recent concerns about CoreWeave's debt situation.

CoreWeave, which went public in March 2025, has been rapidly expanding its AI infrastructure. The acquisition of Core Scientific is a strategic move to enhance operating efficiency, reduce infrastructure conversion risks, and address growth needs. CoreWeave expects to generate significant cost savings through streamlined business operations and the elimination of lease overhead [3].

In other recent news, CoreWeave has become the first AI cloud provider to deploy NVIDIA's GB300 NVL72 systems, which offer substantial improvements in AI infrastructure performance. The company has also introduced three new AI cloud software products aimed at improving AI development and deployment efficiency [2].

References:
[1] https://www.cryptopolitan.com/coreweave-acquisition-of-core-scientific/
[2] https://ca.investing.com/news/analyst-ratings/coreweave-stock-rating-reiterated-at-neutral-by-macquarie-on-core-scientific-deal-93CH-4092268
[3] https://www.coreweave.com/news/coreweave-to-acquire-core-scientific