2 days ago
Core Scientific (CORZ) reported weaker-than-expected gross but topped adjusted EBITDA estimates successful its second-quarter 2025 results. Yet the main absorption remains its proposed merger with AI unreality supplier CoreWeave (CRWV), which is acceptable for a shareholder ballot successful the 4th quarter, concern slope Jefferies said successful a probe study Monday.
At CoreWeave’s existent terms of $99.97, the all-stock woody values Core Scientific shares astatine astir $12.35, good beneath Jefferies’ estimated just worth of $16 to $23.
Investor sentiment connected the merger is tied straight to CoreWeave’s price, the study said. The agreed speech ratio of 0.1235 translates into a Core Scientific worth that fluctuates with CRVW’s stock swings.
The study noted that portion CoreWeave has traded arsenic precocious arsenic $183 successful June, the banal closed beneath $100 connected Friday, pushing the implied Core Scientific terms beneath marketplace levels. CORZ itself ended the time astatine $14.13.
This disconnect suggests immoderate investors expect the woody to fail, Jefferies said, arguing that Core Scientific’s assets and currency travel imaginable warrant a higher valuation.
If CoreWeave's banal doesn’t retrieve up of the vote, Jefferies sees country for renegotiation. A higher speech ratio, perchance 0.16 to 0.20, could bring the implied valuation of CORZ shares backmost wrong the $16 to $23 range. A collar proviso could besides stabilize the woody against further volatility.
The slope has a bargain standing connected Core Scientific shares. It raised its CORZ terms people to $22 from $16 to bespeak the CoreWeave acquisition. The shares were 1.8% higher, trading astir $14.40 astatine work time.
Read more: Bitcoin Miner Core Scientific’s Third Largest Shareholder Opposes CoreWeave Deal
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