Jefferies: Core Scientific Investors Likely to Reject CoreWeave Deal
Jefferies expects Core Scientific (CORZ) shareholders to vote down the proposed merger with CoreWeave (CRWV) on Oct. 30, saying the offer undervalues the bitcoin mining firm.
Core Scientific shares are trading roughly 18% above the implied offer price, signaling investors see greater standalone potential. “Unless CoreWeave’s stock rallies meaningfully before the vote, a rejection looks likely,” Jefferies said in a Tuesday note.
The stance aligns with proxy advisor ISS and major shareholder Two Seas Capital, both of whom have advised investors to oppose the deal, citing valuation and structural issues.
Analysts Jonathan Petersen and Jan Aygul said Core Scientific’s current valuation sits between peers — roughly matching Applied Digital (APLD), below Cipher Mining (CIFR), and above TeraWulf (WULF) — suggesting it is fairly priced rather than deeply discounted.
Even without the merger, Jefferies believes Core Scientific can continue to build value. The firm controls about 305 megawatts (MW) of billable IT capacity, which could be leased to CoreWeave or new hyperscale and “neocloud” clients as it pivots toward high-performance computing (HPC).
“Expanding capacity, acquiring new sites, or transitioning to a REIT model could further enhance valuation,” the report said.
Still, Jefferies cautioned that rejecting the deal may strain relations with CoreWeave, potentially slowing new lease negotiations. However, CoreWeave’s rising GPU demand could eventually lead to renewed talks between the two firms.
Reflecting stronger confidence in Core Scientific’s standalone strategy, Jefferies raised its price target from $22 to $24. Shares traded 1.7% higher at around $20.44 early Tuesday.
