CoreWeave (CRWV) has officially announced its decision to acquire bitcoin miner Core Scientific (CORZ) in a significant all-stock transaction valued at $20.40 per share. This deal implies a remarkable ~16x FY26E EBITDA multiple, which, as noted by investment bank KBW, is considerably lower than the multiples seen among traditional data center peers.
At publication time, Core Scientific shares were observed trading approximately 18% lower, around $14.75, while CoreWeave’s stock faced a 5% decline. This market reaction indicates a potential investor sentiment of disappointment regarding the terms of the deal.
The strategic advantages of this acquisition for CoreWeave are substantial, highlighted by the projected reduction of over $10 billion in lease obligations and the unlocking of more than $500 million in annual cost savings by 2027. Despite these benefits, KBW characterizes this move as opportunistic, suggesting that it capitalizes on CRWV’s impressive 295% post-IPO rally, as reported earlier this week.
Analyst Bill Papanastasiou noted, “While we view this as an opportunistic attempt by CRWV to capitalize on recent stock appreciation, the market’s reaction signals disappointment and potential disagreement with the deal terms.” Under the agreement, shareholders of Core Scientific will exchange their holdings for 0.1235 shares of CoreWeave for each share they own, valuing the entire business at approximately $9 billion.
The completion of this acquisition requires the approval of Core Scientific shareholders and is expected to close in the fourth quarter of 2025. However, there are indications that shareholders may contest the terms of the deal, particularly given the unchanged asset base since CRWV’s initial bid and the absence of any cash component in the transaction. As stated by analysts, the forthcoming shareholder vote may encounter some friction.
Despite potential disagreements, the lack of competing offers suggests that the deal is likely to move forward. KBW has maintained an “outperform” rating on the shares of Core Scientific, with a price target set at $19. Furthermore, rival Wall Street firm Bernstein observed the decline in Core Scientific’s stock price following the announcement, indicating that “shareholders were probably expecting a higher valuation” and expressing disappointment with the nature of the all-stock deal. Bernstein shares a similar stance with an outperform rating on Core Scientific stock, setting a price objective at $17.
Read more: Core Scientific, Bitcoin Miners Tumble on CoreWeave Buyout; Jefferies Says Price in Expected Range
