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Core Scientific’s Valuation Gap Sparks Merger Uncertainty Amid CoreWeave Stock Volatility

Core Scientific’s Valuation Gap Sparks Merger Uncertainty Amid CoreWeave Stock Volatility

Published:
2025-08-18 16:08:02
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BTCCSquare news:

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.

|Square

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