TechFlow news, August 18 — According to CoinDesk, investment bank Jefferies released a research report stating that the proposed merger between bitcoin miner Core Scientific (CORZ) and AI cloud provider CoreWeave is facing valuation discrepancies. The firm raised its price target for Core Scientific from $16 to $22 to reflect the acquisition's value and maintained its "buy" rating.
According to the report, based on CoreWeave's current share price of $99.97, the all-stock transaction implies a valuation of approximately $12.35 for Core Scientific, significantly below Jefferies' estimated fair value range of $16 to $23. Analysts suggest that if CoreWeave's stock price does not recover before the shareholder vote, the parties may need to renegotiate the deal terms, increasing the exchange ratio to between 0.16 and 0.20 or adding protective provisions to address stock volatility.
