Core Scientific (CORZ) Drops as CoreWeave Merger Faces Probe

Core Scientific Inc. (NASDAQ:CORZ) is one of the 10 Stocks That Investors Are Dumping.

Core Scientific fell for a third day on Wednesday, shedding another 4.21 percent to close at $13.43 each as investor sentiment was dampened by news that it was being investigated by a shareholder law firm over its proposed sale to CoreWeave, Inc. (NASDAQ:CRWV).

In a statement, former Louisiana attorney general Charles Foti, Jr., teamed up with law firm Kahn Swick & Foti, LLC to initiate a probe into Core Scientific Inc. (NASDAQ:CORZ) looming all-stock merger with CoreWeave.

Under the terms of the agreement, Core Scientific, Inc. (NASDAQ:CORZ) stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio.

“KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the company,” the law firm said.

For his part, Core Scientific, Inc. (NASDAQ:CORZ) President and CEO Adam Sullivan believed that the planned merger will position the company to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for shareholders.

While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.