Why Core Scientific Shareholders Should Consider Rejecting the CoreWeave Takeover Offer

In the rapidly evolving landscape of data center infrastructure, strategic decisions carry profound implications for long-term value creation. Core Scientific's shareholders face a pivotal moment with CoreWeave's proposed $9 billion all-stock acquisition, which, while offering a 66% premium to Core Scientific's unaffected share price, according to a MarketMinute report, may significantly underrepresent the company's standalone growth potential and diversification opportunities. This analysis argues that rejecting the offer could unlock greater value by preserving Core Scientific's ability to capitalize on high-growth markets, reduce customer concentration risks, and pursue strategic alternatives beyond CoreWeave's current scope.

Undervalued Growth Potential: A Standalone Case for Expansion

Core Scientific's strategic pivot toward high-performance computing (HPC) and colocation services positions it to capture a share of the $50 billion+ AI compute market, as outlined by Canvas Business Model. By the end of 2025, the company aims to deliver 250 megawatts of billable capacity, with a long-term target of 1.3 gigawatts by 2027, according to Investing's SWOT analysis. This expansion is underpinned by significant infrastructure investments, including a $1.2 billion project in Denton, Texas, and a $135 million facility in Auburn, Alabama, as described by Canvas Business Model. These initiatives are not merely incremental but transformative, enabling Core Scientific to serve a broader client base beyond its current reliance on CoreWeave, which accounts for over 76% of its projected 2026 revenue, according to MarketBeat financials.

Moreover, Core Scientific's operational expertise in high-density computing environments-critical for AI and machine learning-provides a competitive edge. According to a report by BeyondSPX, the company's application-specific data centers (ASDCs) are optimized for energy efficiency and scalability, aligning with global demand for sustainable, high-performance infrastructure. This technological differentiation, combined with its aggressive capacity targets, suggests a trajectory of revenue growth that the CoreWeave offer fails to fully price in.

Strategic Alternatives: Diversification and Market Access

The acquisition by CoreWeave, while promising operational efficiencies, risks entrenching customer concentration. CoreWeave is Core Scientific's sole HPC customer, and the merger would eliminate the company's ability to pursue independent partnerships in the AI and enterprise sectors. For instance, Core Scientific's pipeline includes large-scale contracts in the 50–100 megawatt range with enterprise clients, which could diversify its revenue streams and reduce exposure to Bitcoin mining volatility, according to Canvas Business Model. By accepting the offer, shareholders would forgo the potential to leverage these opportunities, which could drive valuation multiples beyond the current $9 billion.

Furthermore, Core Scientific's strategic flexibility extends to mergers and acquisitions. The company has signaled intent to acquire next-generation data center assets, a move that could accelerate its path to 1.3 gigawatts of capacity by 2027, per Canvas Business Model. Such actions would not only diversify its geographic footprint but also enhance its ability to serve global clients, including hyperscalers and cloud providers outside CoreWeave's ecosystem. Analysts at Citigroup have noted that CoreWeave's high customer concentration and execution risks could limit its long-term growth, contrasting with Core Scientific's broader market access, as discussed in a CNBC report.

Financial Realities and Shareholder Value

While CoreWeave emphasizes cost savings-projecting $500 million in annual run-rate savings by 2027-the all-stock structure of the deal dilutes Core Scientific shareholders to less than 10% ownership in the combined entity, as reported by MarketMinute. This dilution raises questions about whether the benefits of vertical integration will translate into proportional value for Core Scientific's stakeholders. Additionally, Core Scientific's recent financial performance, including a Q2 2025 net gain of $581 million (per MarketBeat financials), underscores its improving operational efficiency and debt restructuring success. These factors, coupled with its $6.3 billion enterprise value as of September 2025, reported by MarketBeat, suggest that the company's intrinsic value may already exceed the acquisition price.

Critically, some shareholders estimate Core Scientific's fair value at $25 per share-valuing the company at approximately $11.5 billion, according to MarketMinute-a figure supported by its expanding colocation revenue and AI infrastructure pipeline. By rejecting the offer, shareholders could force CoreWeave to revisit terms or allow Core Scientific to explore alternative strategies, including a potential public listing or partnerships with other hyperscalers.

Conclusion: A Call for Prudent Stewardship

The CoreWeave acquisition, while strategically appealing to CoreWeave's growth ambitions, overlooks Core Scientific's unique strengths in infrastructure diversification, technological innovation, and market access. For shareholders, the decision to reject the offer is not merely a rejection of a flawed deal but an assertion of confidence in Core Scientific's standalone potential. In an era where AI and HPC demand are surging, preserving strategic autonomy could prove far more valuable than accepting a premium that fails to reflect the company's full trajectory.