Core Scientific’s Valuation Gap Sparks Merger Uncertainty Amid CoreWeave Stock Volatility
Core Scientific (CORZ) posted mixed Q2 2025 results—revenue missed expectations while adjusted EBITDA beat estimates—but investor attention remains fixed on its pending all-stock merger with AI cloud provider CoreWeave (CRWV). Jefferies highlights a stark valuation disconnect: at CoreWeave's current $99.97 share price, the 0.1235 exchange ratio values CORZ at just $12.35, far below the bank's $16-$23 fair value estimate.
The deal's fate hinges on CRWV's volatile stock performance, which peaked at $183 in June before retreating below $100 last Friday. With CORZ closing at $14.13, the spread suggests market skepticism about merger approval. Jefferies argues Core Scientific's underlying assets and cash FLOW potential warrant renegotiation—either through an increased exchange ratio (0.16-0.20) or a collar mechanism to buffer against further swings in CoreWeave's share price.