Core Scientific (NASDAQ: CORZ) is navigating a valuation mismatch in its pending all-stock merger with CoreWeave (NASDAQ: CRVW), according to investment bank Jefferies, which reiterated its buy rating on CORZ and raised its price target to $22 from $16.
Merger Valuation Under Pressure
At CoreWeave’s current share price of $99.97, the agreed exchange ratio of 0.1235 values Core Scientific stock at about $12.35 per share. That figure is well below Jefferies’ estimated fair value of $16 to $23 and lower than CORZ’s latest closing price of $14.13.
The disconnect highlights the risk that Core Scientific shareholders could reject the deal if CoreWeave’s stock fails to rebound before the fourth-quarter vote. Jefferies noted that CoreWeave traded as high as $183 in June, but has since dropped by nearly half, weakening the deal’s implied valuation.
Core Scientific reported weaker-than-expected revenue for Q2 2025 but still managed to beat adjusted EBITDA forecasts. Despite the financial performance, investor focus remains squarely on the CoreWeave merger, which would align the Bitcoin miner with one of the fastest-growing AI cloud providers.
Jefferies’ Outlook
Jefferies believes the merger could still provide strategic upside, particularly through AI-cloud integration, but warns that current pricing creates an “implied discount” that may lead to deal renegotiation.
“Investor sentiment is directly tied to CoreWeave’s price. Without a rebound, we see pressure for Core Scientific shareholders to reconsider the deal structure,” Jefferies noted in its report.
While Core Scientific’s fundamentals remain solid, the CoreWeave share slump has created a significant valuation gap that could impact the deal outcome. Jefferies’ raised target of $22 suggests long-term confidence, but the near-term path depends on how CoreWeave’s stock trades ahead of the merger vote.
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