Core Scientific Reports Q2 2025 Results Amid Merger Concerns
Core Scientific (CORZ) reported second-quarter 2025 results with weaker revenue but exceeded adjusted EBITDA estimates. The focus remains on the proposed all-stock merger with AI cloud provider CoreWeave (CRWV), pending a shareholder vote in Q4.
- CoreWeave's current price is $99.97, valuing Core Scientific shares at approximately $12.35.
- Jefferies estimates Core Scientific's fair value between $16 and $23.
- The agreed exchange ratio of 0.1235 links Core Scientific's value to fluctuations in CoreWeave's stock.
- CoreWeave traded as high as $183 in June but closed below $100, affecting investor sentiment regarding the merger.
- Concerns exist that the deal may not proceed, despite Jefferies supporting a higher valuation for Core Scientific's assets and cash flow potential.
- If CoreWeave's stock does not recover before the vote, Jefferies suggests renegotiating the exchange ratio to 0.16-0.20 to align with estimated values.
- Jefferies raised its price target for CORZ shares from $16 to $22, maintaining a buy rating.
At publication, CORZ shares were trading around $14.40, up by 1.8%.