CoreWeave’s All-Stock Bid for Core Scientific Likely to Draw Shareholder Scrutiny: KBW
2025-07-07 19:38:58
Main Idea
CoreWeave has agreed to acquire bitcoin miner Core Scientific in an all-stock deal valued at $20.40 per share, but KBW analysts see limited upside for Core Scientific shareholders.
Key Points
1. The deal is valued at $20.40 per share, implying a ~16x FY26E EBITDA, with Core Scientific shares trading 18% lower at $14.75.
2. CoreWeave stock was down 5% at the time of publication.
3. KBW views the deal as opportunistic, capitalizing on CoreWeave's 295% post-IPO rally, and expects limited upside for Core Scientific shareholders.
4. The deal requires approval from Core Scientific shareholders and is expected to close in Q4 2025, though the shareholder vote may face friction.
5. KBW has an 'outperform' rating on Core Scientific shares with a $19 price target.
Description
CoreWeave (CRWV) has agreed to acquire bitcoin miner Core Scientific (CORZ) in an all-stock deal valued at $20.40 per share, implying a ~16x FY26E EBITDA multiple, a steep discount to traditional data center peers, according to investment bank KBW. Core Scientific shares were 18% lower, trading around $14.75 at publication time. CoreWeave stock was down 5%. While the deal offers CoreWeave strategic benefits, cutting over $10 billion in lease obligations and unlocking more than $500 million in an...
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