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

Core Scientific (CORZ) delivered mixed Q2 2025 results, missing revenue expectations but surpassing adjusted EBITDA estimates. The market's focus remains fixated on its pending all-stock merger with AI cloud provider CoreWeave (CRWV), slated for a shareholder vote in Q4.

At CoreWeave's current $99.97 share price, the 0.1235 exchange ratio values Core Scientific at $12.35—a steep discount to Jefferies' $16-$23 fair value estimate. This 22% gap suggests skepticism about deal completion, particularly after CRWV shares retreated from June's $183 peak to sub-$100 levels last Friday.

The investment bank argues Core Scientific's infrastructure assets and cash FLOW potential warrant renegotiation if CoreWeave's stock doesn't recover. Potential solutions include adjusting the exchange ratio to 0.16-0.20 or implementing price collars to mitigate volatility.