Bitcoin News Today: Failed CoreWeave Merger Reveals Core Scientific's AI Strength, Macquarie Upgrades

Core Scientific (NASDAQ: CORZ) has been upgraded to "Outperform" by Macquarie following the collapse of its proposed $9 billion merger with AI cloud provider CoreWeave (NASDAQ: CRWV), with the firm raising its price target to $34 from $18. The failed deal, rejected by shareholders on October 30, according to The Outpost, has sparked optimism among analysts who argue that Core Scientific's standalone potential in the AI data center boom is now more evident.

The merger, initially announced in July 2025, faced sustained opposition from major shareholders and proxy advisors. Two Seas Capital, a significant stakeholder with a 6% ownership, repeatedly criticized the offer as undervaluing Core Scientific's assets and future prospects, and urged shareholders to reject it. The firm argued that Core Scientific's stock would trade at over twice the $16.40-per-share deal price if aligned with AI infrastructure peers. Institutional Shareholder Services (ISS) and Glass Lewis also recommended voting against the transaction, citing structural risks tied to CoreWeave's volatile stock.

The rejection marked a pivotal moment for Core Scientific, which has transitioned from a bitcoin mining company to a hybrid provider of high-performance computing (HPC) and AI infrastructure. The firm's 700-megawatt development pipeline and access to low-cost power have drawn attention from analysts. H.C. Wainwright and Roth/MKM also raised their price targets to $25 and $23.50, respectively, while Cantor Fitzgerald set its target at $26.

CoreWeave CEO Michael Intrator acknowledged the outcome, stating the company respects shareholders' decision and will continue its commercial partnership with Core Scientific. The failed merger, however, has opened new opportunities for Core Scientific to lease its infrastructure to AI tenants, a move analysts view as more lucrative than the all-stock deal. Jefferies highlighted that securing a new major client would be a key milestone for diversifying Core Scientific's revenue. The shareholder vote that sank the $9 billion deal was also reported by The Block.

Financially, Core Scientific has shown resilience. Despite a third-quarter net loss of $146.7 million, the company reported a narrowed loss compared to $455.3 million in the prior year and maintained $694.8 million in liquidity, including $241 million in Bitcoin holdings. The stock surged to an all-time high of $20.43 in October, reflecting investor confidence in its dual focus on crypto mining and AI infrastructure.

Macquarie's upgrade underscores broader market sentiment that Core Scientific is better positioned independently. The firm noted the company's ability to capture near-term power capacity for AI clients, a critical advantage in the rapidly expanding neocloud sector. "The termination of the CoreWeave deal places CORZ in a favorable position to add new customers and maximize shareholder value through EBITDA-generating leases," Macquarie analysts wrote.

With the AI data center market projected to grow exponentially, Core Scientific's standalone strategy may prove lucrative. The company's existing partnership with CoreWeave-under which it hosts 270 megawatts of NVIDIA GPU clusters-remains intact, providing a stable revenue stream while it explores new opportunities.