CoreWeave’s Bid for Core Scientific Faces Probe: CRWV Stock and CORZ -28%
Following a remarkable multi-month surge, shares of CoreWeave and Core Scientific fell, igniting investor worry over corporate acquisitions.
Quick overview
- CoreWeave's shares have experienced a significant correction, dropping nearly $50 from their peak after a remarkable IPO performance.
- Speculation about a merger with Core Scientific initially boosted investor confidence, but concerns over a legal investigation have led to a sharp selloff.
- Core Scientific's stock has fallen 27% from its July highs, reflecting investor anxiety about the potential undervaluation in the proposed merger.
- The broader market context shows growing caution among investors, with signs of a cooling labor market influencing sentiment towards high-growth tech stocks.
Following a remarkable multi-month surge, shares of CoreWeave and Core Scientific fell, igniting investor worry over corporate acquisitions.
CoreWeave’s IPO Run Faces a Harsh Reversal
CoreWeave Inc. (NASDAQ: CRWV), the cloud-computing startup that delivered one of the most eye-catching IPO performances in years, is now grappling with its sharpest correction yet. The company listed in late March 2025 at $40 per share and ignited a speculative buying spree that saw the stock climb to a stunning $187 by late June—a gain of more than 450% in just a few months.
CRWV Stock Chart – Sell Signal When the 20 SMA Turned Into Resistance Last Week
But momentum has reversed dramatically. Over the past three trading sessions, CRWV shares have slumped by nearly $50 from their highs, closing at $138.29 on Thursday before dipping further into the $137 range in after-hours trade. Thursday alone saw a drop of about 10%, underscoring the speed and severity of the correction.
Merger Hopes Boosted, Then Dented
The dramatic rally in CoreWeave was stoked partly by speculation—and later confirmation—of talks to acquire Core Scientific (NASDAQ: CORZ), a major Bitcoin mining and GPU hosting firm. In late June, The Wall Street Journal reported renewed negotiations for CoreWeave to buy CORZ in an all-stock transaction valued at roughly $9 per share. Under the agreement, Core Scientific investors would receive 0.1235 newly issued CoreWeave Class A shares for each CORZ share they own.
CORZ Stock Chart Weekly – Heading to the 50 SMA
CORZ shares had jumped from $12.40 in mid-June to over $18 by early July, reflecting strong market optimism about the tie-up. The deal was pitched as a strategic boost for CoreWeave’s GPU infrastructure ambitions, promising to unify AI-focused cloud computing with blockchain-intensive operations.
Legal Challenge Sparks Selloff
However, that enthusiasm unraveled rapidly this week after it emerged that a shareholder rights firm was scrutinizing the deal. Attorney General Charles Foti, Jr. and law firm Kahn Swick & Foti, LLC announced an investigation into whether the proposed merger undervalues Core Scientific. This development rattled investors worried about possible delays, renegotiation, or even the collapse of the deal.
As a result, Core Scientific stock has tumbled 27% from its July highs. The selloff spread to CoreWeave as well, amplifying the correction that had already begun on profit-taking after the blistering IPO rally.
Broader Market Context: Labor Market in Focus
These corporate gyrations come against a backdrop of growing investor caution about the US economy. Jobless claims data has suggested a gradual cooling in the labor market, with continuing claims trending higher. Analysts note that while layoffs remain historically low, the uptick indicates it’s taking longer for displaced workers to find new jobs—potentially signaling a slowing economy.
The Federal Reserve is watching this data closely as it calibrates its interest rate strategy. Markets remain sensitive to signs of economic deceleration, knowing that sustained weakness in employment could weigh on consumer spending, corporate earnings, and the appetite for riskier assets such as high-growth tech and crypto-adjacent plays like CoreWeave and Core Scientific.
Conclusion: The turbulence in CoreWeave and Core Scientific highlights how quickly sentiment can shift in speculative growth stories, especially when legal and strategic uncertainties surface. Coupled with a labor market that’s no longer red-hot, these moves remind investors of the importance of balancing optimism with caution in a market increasingly attuned to both corporate fundamentals and macroeconomic signals.
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