CoreWeave (CRWV) has finalized plans to acquire Core Scientific (CORZ) in an all-stock transaction valued at $20.40 per share. This valuation suggests a multiple of approximately 16x FY26E EBITDA, considerably lower than what is typical for traditional data center companies, according to KBW.

At the time of publication, shares of Core Scientific had dropped by 18%, trading around $14.75, while CoreWeave’s stock was also down by 5%.

Key Insights:

• KBW highlighted that the proposed acquisition from CoreWeave appears undervalued compared to its competitors.
• There are concerns that shareholders of Core Scientific may challenge the deal’s terms.
• Analysts predict that the deal will likely proceed unless a competing offer surfaces.

Core Scientific’s shareholders will receive 0.1235 shares of CoreWeave for each Core Scientific share held, assigning a total valuation of around $9 billion. Approval from Core Scientific’s shareholders is required to finalize the deal, expected for completion in Q4 2025.

Despite the strategic advantages—such as saving over $500 million in annual costs by 2027—KBW describes this move as opportunistic, taking advantage of a 295% increase in CoreWeave’s stock since its IPO. “While we believe this is a tactical effort by CRWV to leverage its recent stock performance, investor reactions indicate potential dissatisfaction regarding the deal details,” said analyst Bill Papanastasiou.

Given that no competing bids are anticipated, this agreement is likely to proceed, although shareholder pushback on deal terms is expected. KBW maintains an ‘outperform’ rating on Core Scientific shares with a target price of $19.