CoreWeave’s Acquisition of Core Scientific Faces Mounting Skepticism

CoreWeave US21873S1087

CoreWeave is publicly defending its proposed all-stock acquisition of Core Scientific, a move that is encountering increasing investor doubt. The deal's stability is under question following a renewed reminder of a formal investigation by a law firm and growing concerns over the valuation of the share-exchange offer.

In a recent statement, CoreWeave's management reiterated its position, labeling the planned vertical integration of the data center chain as the "optimal alternative." This view is not universally shared. Proxy advisory firms and other critics have expressed reservations about the proposed terms of the exchange.

Adding to the uncertainty, law firm Kessler Topaz Meltzer & Check has highlighted an ongoing formal investigation. The probe focuses on potential violations of federal securities laws connected to CoreWeave's significant downward revision of its annual forecast in November. That earlier guidance cut had already triggered a substantial single-day decline in the company's share price.

Beyond the deal mechanics, analysts point to underlying business risks. While early large-scale contracts provide revenue visibility, their operational execution remains challenging. Market observers cite the combination of aggressive expansion, high debt levels, and a concentrated reliance on major customers as core uncertainty factors.

Share Performance and Market Data

The equity currently trades at €68.20, down from €72.00 the previous session. This price sits notably below key technical indicators: the 50-day moving average of €78.05 and the 100-day moving average of €88.86. Shares are now trading approximately 57% below their 52-week high.

Short-term trading conditions are exacerbated by significant volatility, with the 30-day annualized figure reaching 97%. Elevated trading volume during the current session further reflects heightened market nervousness.

Critical Path and Technical Outlook

The immediate future hinges on two key developments: the outcome of the shareholder vote at Core Scientific on the transaction and any developments in the ongoing legal investigation.

From a chart perspective, reclaiming the 50-day moving average level near €78 would serve as an initial signal of stabilization. Failure to achieve this could expose the stock to further downside risk, potentially testing the 52-week low of €55.00.

Investors are also monitoring the timeline. The formal goal to complete the transaction in the fourth quarter of 2025 is approaching its deadline. Furthermore, initial preliminary figures for the 2025 fiscal year are scheduled for early February 2026. Consequently, the potential for share price stabilization depends less on public statements and more on tangible progress in finalizing the deal and demonstrating robust operational performance.