Coreweave (CRWV) have agreed to acquire Bitcoin Miner Core Scientific (Corz) In an All-Stock Agreement Valued to $ 20.40 per Share, which involves a ~ 16x FY26E EBITDA MULTIPLE, a steep discount for traditional data center-telling, according to Investment Bank KBW.
Core science shares were 18% lower and traded about $ 14.75 upon publication time. The Coreweave stock dropped 5%.
While the agreement offers Coreweave-strategic benefits that cut over $ 10 billion in lease obligations and unlock more than $ 500 million in annual cost savings in 2027, KBW considers it an opportunistic step, taking advantage of CRWV’s 295% post-in-rally, the bank said in a report Monday.
“While we consider this as an opportunistic attempt from CRWV to capitalize on the recent stock assessment, the reaction signalizes disappointment and potential disagreement with the contractual terms,” wrote analyst Bill Papanastasiou.
Under the terms of the agreement, the core scientific shareholders will receive 0.1235 Coreweave shares for each share incurred that estimates the company at around $ 9 billion.
The trade requires approval from core scientific shareholders and is expected to close in Q4 2025.
Core scientific shareholders can push back on the terms of the agreement, the analyst noted, given the unchanged asset base since CRWV’s first failed bid and lack of a cash component. “The shareholder voting can see friction.”
Still, without expected competing offers, the agreement is likely to continue, the report says.
KBW has a “better than” rating on core scientific shares with a price target of $ 19.
The rival Wall Street company Bernstein noticed the fall in the scientific share price after the agreement was announced and said “shareholders probably expected a higher valuation,” and “Investors were disappointed with an All Stock Deal.”
The broker has an outperform rating on core scientific stock with a price target of $ 17.
Read more: Core Scientific, Bitcoin Miners tumble on Coreweave Buyout; Jefferies says price in expected range
