The intersection of Artificial Intelligence (AI) and cryptocurrency is rapidly becoming the most lucrative frontier in technology, a trend powerfully illustrated by the potential acquisition of Bitcoin miner Core Scientific (CORZ) by AI cloud provider CoreWeave. In a research note that sent shockwaves through the market, Cantor Fitzgerald analysts projected that Core Scientific's stock could surge to over $30 per share in a buyout scenario. This valuation represents a near-doubling from its Thursday closing price of over $16, a level it reached after jumping 33% on the news of advanced acquisition talks, according to The Wall Street Journal. The market's explosive reaction underscores a pivotal shift where the infrastructure once dedicated to mining digital gold is now seen as prime real estate for powering the AI revolution.

The Multi-Billion Dollar AI Pivot: Deconstructing the CORZ Valuation

Cantor Fitzgerald's bullish thesis is not based on speculation but on concrete financial modeling. The core of their valuation rests on a landmark 12-year, $3.5 billion contract Core Scientific signed with CoreWeave in 2024. This deal secures 200 megawatts (MW) of high-performance computing (HPC) capacity for AI workloads. The analysts assign a value of $24 per share to this long-term, stable cash flow stream alone, using a conservative 15x profit multiple common for data center REITs. Furthermore, they add another $11.70 per share for the replacement value of Core Scientific's remaining 570MW of power infrastructure. This detailed breakdown provides traders with a clear, data-driven rationale for the potential upside, moving beyond simple M&A arbitrage to a fundamental re-evaluation of the company's assets in the context of the AI boom. While the broader crypto market showed modest consolidation, with BTCUSDT hovering around $108,107 and ETHUSDT near $2,529, the targeted interest in CORZ highlights a specific, high-growth sub-sector.

From Bitcoin Volatility to AI Stability

This strategic pivot from BTC mining to AI infrastructure is a theme gaining significant traction. A May report from Rittenhouse Research argued that the most forward-thinking crypto companies are leveraging their energy and infrastructure assets to serve the insatiable demand from AI. The report noted that AI generates predictable, long-term revenue streams, a stark contrast to the volatile and cyclical nature of Bitcoin mining, which is subject to the quadrennial halving events and extreme price dependency. As Rittenhouse succinctly put it, “The infrastructure used to mine digital gold is better used to process AI algorithms.” This sentiment is echoed by the strategic moves of companies like Galaxy Digital, whose acquisition of the Helios data center in late 2022 was initially seen as a distressed asset purchase but has since proven to be a masterstroke in securing AI-ready infrastructure. The market is rewarding this foresight, recognizing that the challenge of designing ever-more-efficient mining chips is becoming increasingly difficult, while the demand for AI compute is growing exponentially.

A Market of Diverging Fates: Not All Pivots Succeed

However, traders must recognize that not every pivot away from Bitcoin mining guarantees success. The market is discerning, punishing poorly executed or ill-conceived strategies. For instance, when Bit Digital announced it was divesting from its Bitcoin rigs to focus on Ethereum staking, its stock plunged 15% during a single trading session. Similarly, hardware manufacturer Canaan, which once harbored ambitions in the AI chip space, has shuttered the unit and seen its stock plummet nearly 75% over the last six months, closing at a mere 63 cents on Thursday. These examples serve as a crucial counterpoint to the Core Scientific story. The success of CORZ lies in its ability to leverage its existing, hard-to-replicate physical footprint and power agreements for a directly adjacent, high-demand market. It found a middle path, retaining its core competency in running large-scale data centers while tapping into the $100 billion AI infrastructure boom. If CoreWeave's second offer materializes near Cantor's valuation, it won't just be a win for CORZ shareholders; it will establish a new, highly profitable blueprint for the entire crypto mining sector, proving that the true value may lie in the picks and shovels, not just the digital gold they unearth.