Core scientific (Corz) Reported weaker than expected revenue, but topped adjusted EBITDA stimets in its results from the second quarter of 2025. Still, the main focus remains its proposed fusion with AI cloud provider Coreweave (CRWV)Which is set for a shareholder vote in the fourth quarter, investment bank Jefferies said in a research report on Monday.
For Coreweave’s current price of $ 99.97, All-Stock Deal Core Scientific appreciates shares to approx. $ 12.35, well under Jefferies’ estimated fair value of $ 16 to $ 23.
Investor mood on the merger is tied directly at Coreweave’s price, the report says. The agreed exchange ratio of 0.1235 is translated into a core scientific value that fluctuates with CRVW’s share fluctuations.
The report noted that while Coreweave has traded as high as $ 183 in June, the stock closed under $ 100 on Friday and pushed the implied core scientific price below market levels. Corz even ended the day at $ 14.13.
This interruption suggests that some investors expect the agreement to fail, Jefferies said, arguing that Core Scientific’s assets and cash flow potential justifies a higher valuation.
If Coreweave’s share does not recover before the vote, Jefferies sees space for renegotiation. A higher exchange ratio, potentially 0.16 to 0.20, could bring back the implied valuation of Corz shares within $ 16 to $ 23 area. A collar determination can also stabilize the agreement against further volatility.
The bank has a purchase rating on core scientific shares. It raised its Corz exchange rate to $ 22 from $ 16 to reflect the Coreweave acquisition. The shares were 1.8% higher and traded about $ 14.40 upon publication time.
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