In a significant move within the cryptocurrency industry, CoreWeave (CRWV) has reached an agreement to acquire the bitcoin miner Core Scientific (CORZ) in an all-stock transaction valued at approximately $20.40 per share. This deal implies a notable ~16x FY26E EBITDA multiple, which stands out as a steep discount compared to traditional data center counterparts, according to research from investment bank KBW.
At the time of publication, Core Scientific’s shares saw an 18% decline, trading around $14.75, while CoreWeave’s stock also experienced a 5% drop. Despite these fluctuations, the acquisition presents CoreWeave with potential advantages, including reducing lease obligations by over $10 billion and unlocking annual cost savings exceeding $500 million by 2027. KBW characterized this move as opportunistic, emphasizing CRWV’s impressive 295% surge since its IPO.
“While we view this as an opportunistic attempt by CRWV to capitalize on recent stock appreciation, the reaction signals disappointment and potential disagreement to the deal terms,” stated analyst Bill Papanastasiou.
As part of the acquisition agreement, Core Scientific shareholders will receive 0.1235 shares of CoreWeave for each share they hold, positioning the overall business valuation at around $9 billion. However, this deal is contingent upon the approval of Core Scientific shareholders and is expected to finalize in the fourth quarter of 2025. Analysts have indicated that there may be pushback from shareholders regarding the terms, particularly due to the unchanged asset base since CRWV’s previous unsuccessful bid and the absence of a cash component.
“The shareholder vote may see friction,” noted the analyst.
Despite potential dissent, the lack of competing offers suggests that the acquisition is likely to proceed as planned. KBW maintains an “outperform” rating on Core Scientific shares, setting a price target of $19. Meanwhile, rival Wall Street firm Bernstein observed a decrease in Core Scientific’s stock price post-announcement, remarking that “shareholders were probably expecting a higher valuation” and that “investors were disappointed with an all-stock deal.” Bernstein holds an outperform rating on Core Scientific with a $17 price objective.
CoreWeave’s Acquisition of Core Scientific: Key Points
This acquisition could significantly impact investors and the cryptocurrency market.
- Acquisition Details:
- CoreWeave (CRWV) to acquire Core Scientific (CORZ) in an all-stock deal valued at $20.40 per share.
- Implied valuation at approximately 16x FY26E EBITDA, lower than traditional data center peers.
- Market Reactions:
- Core Scientific shares fell by 18%, trading around $14.75 at announcement.
- CoreWeave stock experienced a 5% decline.
- Strategic Benefits:
- CoreWeave could cut over $10 billion in lease obligations.
- Potential unlocking of more than $500 million in annual cost savings by 2027.
- Analyst Insights:
- KBW views the deal as opportunistic, leveraging CRWV’s recent stock appreciation.
- Analyst Bill Papanastasiou mentions potential disappointment and disagreement from Core Scientific shareholders.
- Terms of Agreement:
- Core Scientific shareholders will receive 0.1235 CoreWeave shares per share held, valuing Core Scientific at about $9 billion.
- Shareholder approval required, with the deal expected to close in Q4 2025.
- Investor Expectations:
- Pushback from Core Scientific shareholders anticipated due to unchanged asset base and absence of cash component.
- Bernstein noted investor disappointment, suggesting expectations for a higher valuation.
- Future Outlook:
- No competing offers expected, indicating a likelihood of deal progression.
- KBW and Bernstein both maintain outperform ratings on Core Scientific stock, with price targets of $19 and $17, respectively.
CoreWeave’s Strategic Move: A Game Changer in the Bitcoin Mining Sector?
The recent agreement between CoreWeave (CRWV) and Core Scientific (CORZ) marks a significant shift in the competitive landscape of bitcoin mining. Valued at approximately $20.40 per share, this all-stock acquisition presents both opportunities and challenges. A notable advantage for CoreWeave is the substantial cost-saving potential, aiming to cut over $500 million in expenses annually by 2027 while relieving over $10 billion in lease obligations. This strategic maneuver could enhance operational efficiency, positioning CoreWeave as a more formidable competitor in the crypto mining domain.
However, the reaction to this deal has been mixed, with Core Scientific’s shares dropping significantly, signaling investor skepticism regarding the valuation. Analysts from KBW have characterized this acquisition as opportunistic, indicating that it may not have been received favorably by Core Scientific shareholders who anticipated a more lucrative cash component. This scenario poses a potential threat to investor confidence, creating friction among shareholders who might resist such terms, jeopardizing the deal’s smooth approval process.
In comparison to similar news in the sector, where other mining entities are forging hefty cash-based partnerships or strategic alliances, CoreWeave’s all-stock deal could appear less appealing. Such competitive disadvantages might create friction not just for Core Scientific’s current shareholders but also for potential investors who could see this as a lack of commitment to shareholder value. On the other hand, the absence of competing bids suggests that the deal may still proceed without significant hurdles, ultimately benefiting CoreWeave in positioning and market share, despite the initial backlash.
The varying valuations set by financial firms like Jefferies and Bernstein, each indicating a lower price objective than the proposed deal, also echo the investors’ cautious sentiment. This could lead to a dilemma for CoreWeave if they cannot address shareholders’ discontent regarding their appraisal of value effectively. Overall, while the acquisition sets the stage for CoreWeave to strengthen its market presence, it must navigate shareholder concerns and market expectations carefully to avoid discontent within its expanding investor base.
