CORZ Stock Down 8% As CoreWeave Losses Mount, CRWV Tumbles 21%
In recent months, Core Scientific's price has fluctuated significantly, and rumors of an acquisition have rekindled investor discussion...
Quick overview
- Core Scientific's stock has experienced significant volatility, with recent acquisition rumors reigniting investor interest and debate over its valuation.
- The company saw a substantial rally earlier in 2025, but shares have retreated amid concerns over peer CoreWeave's performance and acquisition talks.
- Analysts note growing shareholder resistance to the proposed acquisition, particularly from major stakeholders concerned about valuation risks.
- Institutional activity shows mixed signals, with some firms exiting their positions while others, like Vanguard and BlackRock, have increased their holdings.
In recent months, Core Scientific’s price has fluctuated significantly, and rumors of an acquisition have rekindled investor discussion over the company’s worth and future course.
From Multi-Month Rally to Sharp Pullback
Core Scientific (NASDAQ: CORZ) experienced another significant run from April to early July 2025, climbing back above $18 after its spectacular 2024 rally that saw the stock jump 600% from $3 to the $18.60 range. However, over the past two months, shares have retreated alongside weakness in peer CoreWeave, stoking investor caution over ongoing corporate acquisition speculation.
CoreWeave Acquisition Rumors Resurface
On June 26, The Wall Street Journal reported that CoreWeave had reopened talks to acquire Core Scientific, a leading Bitcoin mining and GPU hosting company. This follows Core Scientific’s rejection in June 2024 of a $5.75 per share all-stock offer from CoreWeave, citing the proposal as undervalued. That stance appears validated given that CORZ remains above $13 despite the pullback, although it fell over 9% today on trading volume of $75.3 million.
CORZ Chart Daily – Sellers Face the 50 SMA
Technically, the daily chart shows the price now testing the 50-day simple moving average (SMA) as support. If this level holds, a rebound toward $15 is possible; if it breaks, the next downside target is the 200-day SMA at $12.70.
Shareholder Resistance and Deal Uncertainty
Analysts highlight significant uncertainty surrounding the proposed acquisition. Shareholder resistance is growing, particularly from major stakeholder Two Seas Capital, which has raised concerns over valuation and downside risk. Market observers note that the outcome will likely hinge on CoreWeave’s share price performance ahead of any shareholder vote and whether Core Scientific investors can negotiate stronger deal terms.
Hedge Fund Position Shifts in CORZ
Recent institutional activity in CORZ shows a mixed picture:
- BERYL CAPITAL MANAGEMENT LLC fully exited its position in Q1 2025, selling 18.18M shares worth an estimated $131.6M.
- DRIEHAUS CAPITAL MANAGEMENT LLC also exited, selling 10.26M shares valued at $74.3M.
- VANGUARD GROUP INC increased holdings by 6.67M shares (+32.4%) in Q2 2025, valued at $113.9M.
- BLACKROCK, INC. added 5.64M shares (+31.6%) in Q2 2025, valued at $96.35M.
- SITUATIONAL AWARENESS LP initiated a position of 4.52M shares in Q1 2025, worth $32.73M.
- CLEARLINE CAPITAL LP raised holdings by 3.31M shares (+157.8%) in Q1 2025, worth $23.95M.
- JERICHO CAPITAL ASSET MANAGEMENT L.P. exited entirely, selling 2.79M shares worth $20.22M.
CoreWeave Revenue Soars, but Heavy Spending Deepens Losses
CoreWeave’s second-quarter performance highlighted the explosive growth in AI-driven demand, but also underscored the risks of aggressive expansion. While revenue surged to new heights, escalating capital expenditures and mounting losses have raised investor concerns.
Revenue Surge
In Q2, CoreWeave’s revenue quadrupled year-over-year to $1.21 billion, driven by what the company described as an “unprecedented” spike in AI-related workloads. This sharp increase reflects surging enterprise adoption of AI infrastructure and services, with major clients including OpenAI and Microsoft fueling the boom.
Massive Capital Commitments and Loss Expansion
The company’s rapid scaling came at a steep cost. Capital expenditures totaled $2.9 billion during the quarter, pushing net losses to $290.5 million. Looking ahead, CoreWeave plans to sustain an annual infrastructure investment of $20–23 billion to keep pace with demand. This includes a highly debated $9 billion acquisition of Core Scientific, a move seen as strategic but financially demanding.
Backlog Strength vs. Shareholder Risks
CoreWeave reported a revenue backlog of $30.1 billion, signaling strong contracted demand for future services. However, shares fell 10% after earnings as investors weighed the risks tied to capital access constraints and heavy reliance on a concentrated customer base. Dependence on major partners like OpenAI and Microsoft could expose the company to sudden revenue shifts if partnerships change.
Outlook: Core Scientific’s future path will depend heavily on the outcome of renewed CoreWeave talks and the technical battle at key moving averages. Strong institutional backing from firms like Vanguard and BlackRock may provide some floor to the price, but large exits by other funds signal that uncertainty remains high. If market sentiment improves and negotiations yield favorable terms, a rebound toward $15 and beyond could be on the table; if not, downside pressure may intensify.
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