CoreWeave (coll) Has agreed to obtain Bitcoin Miner Core Science (CORZ) exist All-share trading According to investment bank KBW, the value per share is $20.40, meaning 16 times EBITDA multiple discounts.
Core Science shares fell by 18%, trading around $14.75 at the time of publication. CoreWeave shares fell 5%.
While the deal cuts more than $10 billion in lease obligations and releases more than $500 million in annual costs in 2027, KBW sees it as an opportunistic move, leveraging CRWV’s post-IPO IPO rally 295%.
“While we think this is an opportunistic attempt by CRWV to capitalize on recent stock appreciation, the reaction expresses disappointment and potential disagreement with the terms of the deal,” wrote analyst Bill Papanatasiou.
Under the terms of the agreement, Core Science shareholders will acquire 0.1235 core shares for each share, evaluating the business to $9 billion.
this trade Core Science shareholder approval is required and is expected to close in 2025 in the fourth quarter.
Analysts noted that core science shareholders may postpone the terms of the transaction because the asset base remains unchanged since CRWV’s first failed bid and lack of cash portions. “Stock shareholders may see friction.”
The report said that despite no expected quote, the deal is likely to take place.
KBW has a rating of “outperforming the market” for core science stocks, with a target share price of $19.
Competitor Wall Street firm Bernstein pointed out that after the deal was announced, Core Science’s stock price fell and said “Stockholders may expect higher valuations” and that “Investors are disappointed with all stock transactions.”
Brokers ratings better than the price of Core Science stocks at $17.
Read more: Core Science, Bitcoin miners surrender on Coreweave buyout; Jefferies says prices are expected range
