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Research Alert: CFRA Maintains Hold Opinion On Shares Of Coreweave
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Coreweave
Jul 7, 2025 9:12 AM

11:45 AM EDT, 07/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

CRWV has announced it is acquiring Core Scientific (CORZ), a data center infrastructure provider, in a vertical transaction expected to close by year-end. The deal is all-stock, and CORZ investors will receive 0.1235 shares of CRWV for each share. Through the acquisition, CRWV will own 1.3 GW of gross power across CORZ's data centers with 1 GW+ of gross power available for expansion. We like the proposed benefits of the deal, which include $500M in annualized cost savings by '27-end, eliminating +$10B in leases over the next 12 years. We also see potential for greater financing flexibility/potentially lower cost of capital, power ownership and future optionality for capacity (can repurpose HPC usage and/or divest crypto assets), and greater expertise in data center development (+300 employees). Although we like that the acquisition will allow for more efficient use of CRWV's future capital spending, we note the dilutive impact that will come as a greater supply of shares enters the market from lock-up expirations.

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