Core Scientific Holders Poised to Reject CoreWeave Merger, Jefferies Says

Why It Matters

A failed merger would keep Core Scientific independent, preserving its growth trajectory in the AI‑driven high‑performance computing market and signaling broader valuation skepticism for crypto‑mining firms.

Summary

Jefferies expects Core Scientific (CORZ) shareholders to vote down the proposed merger with CoreWeave (CRWV) on Oct. 30, as CORZ shares trade about 18% above the implied offer price. The bank raised its price target to $24 from $22 and reiterated a buy rating, citing the company's 305 MW of capacity and strong AI data‑center demand as sufficient to generate standalone value. Proxy advisor ISS and major shareholder Two Seas Capital have also urged rejection, pointing to valuation and structural concerns. Even if the deal falls apart, Jefferies sees potential upside from leasing, power expansion, or a future REIT conversion.