Is Core Scientific stock a 'buy' after $1 billion bid from CoreWeave?

Core Scientific Inc (NASDAQ: CORZ) is up 40% on Tuesday following a report that CoreWeave wants to take over the Bitcoin miner for just over $1.0 billion.

Core Scientific stock could climb another 20%

It has only been months since the company based out of Austin, Texas pulled out of bankruptcy.

Still, Gregory Lewis – a BTIG analyst continues to see further upside in $CORZ that has well over doubled already since its year-to-date low in early February. His $8.0 price target on Core Scientific stock suggests another 20% upside from here.

Lewis expects strength in Bitcoin to clear the path for the Nasdaq-listed firm to lower its debt moving forward. Consistent operational execution was among other reasons he cited for his bullish view on Core Scientific shares.  

Last month, $CORZ said it mined about $175 million worth of Bitcoin in its fiscal Q1. The crypto mining company swung to a profit of $210.7 million in its recently reported quarter as well. At the time, Adam Sullivan – its chief executive said:

Core Scientific stock up on AI deal with CoreWeave

CoreWeave also inked a 200 megawatts AI deal with Core Scientific on Tuesday.

It reportedly agreed to injecting about $300 million in the form of capital investments in the Bitcoin mining company with option to eventually expand that commitment as well. Representatives of both $CORZ and CoreWeave, however, have refrained from commenting on the said news so far.

The BTIG analyst is bullish on Core Scientific stock as he’s convinced the Austin-headquartered firm will continue to reduce the debt on its balance sheet moving forward.

Note that $CORZ generated just under $180 million of revenue in its latest reported quarter – up significantly from just $121 million a year ago. Gregory Lewis wrote in a note to clients last week:

Core Scientific stock does not, however, pay a dividend at writing. So, that part of its story is not particularly exciting at the moment.