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Core Scientific Faces Valuation Disconnect; PT Hiked to $22: Jefferies
The bank reiterated its buy rating on CORZ and raised its price target for the bitcoin miner to $22 from $16 to reflect the CoreWeave acquisition.
Aug 18, 2025, 2:47 p.m.
What to know:
- Jefferies warned that if CoreWeave’s stock remains at current levels, Core Scientific shareholders may be inclined to reject the deal.
- The bank raised its CORZ price target to $22 from $16 to reflect the acquisition.
- If CoreWeave's stock doesn’t recover ahead of the vote, Jefferies sees room for renegotiation
Core Scientific (CORZ) reported weaker-than-expected revenue but topped adjusted EBITDA estimates in its second-quarter 2025 results. Yet the main focus remains its proposed merger 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 Monday.
At CoreWeave’s current price of $99.97, the all-stock deal values Core Scientific shares at roughly $12.35, well below Jefferies’ estimated fair value of $16 to $23.
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Investor sentiment on the merger is tied directly to CoreWeave’s price, the report said. The agreed exchange ratio of 0.1235 translates into a Core Scientific value that fluctuates with CRVW’s share swings.
The report noted that while CoreWeave has traded as high as $183 in June, the stock closed below $100 on Friday, pushing the implied Core Scientific price beneath market levels. CORZ itself ended the day at $14.13.
This disconnect suggests some investors expect the deal to fail, Jefferies said, arguing that Core Scientific’s assets and cash flow potential justify a higher valuation.
If CoreWeave's stock doesn’t recover ahead of the vote, Jefferies sees room for renegotiation. A higher exchange ratio, potentially 0.16 to 0.20, could bring the implied valuation of CORZ shares back within the $16 to $23 range. A collar provision could also stabilize the deal against further volatility.
The bank has a buy rating on Core Scientific shares. It raised its CORZ price target to $22 from $16 to reflect the CoreWeave acquisition. The shares were 1.8% higher, trading around $14.40 at publication time.
Read more: Bitcoin Miner Core Scientific’s Third Largest Shareholder Opposes CoreWeave Deal
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
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