Core Scientific (CRWV) Drops 17.6% on All-Stock Merger Deal

CoreWeave (NASDAQ: CRWV) is one of the 10 Stocks Crash Hard Alongside Wall Street.

Core Scientific snapped an eight-day winning streak on Monday, losing 17.61 percent to close at $14.83 as investors disposed of positions following news that it was being acquired by CoreWeave (NASDAQ: CRWV) for $9 billion.

In a statement, CoreWeave (NASDAQ: CRWV) said that it signed a definitive agreement with Core Scientific, Inc. (NASDAQ:CORZ) for an all-stock transaction.

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.

“As our longstanding partner, CoreWeave has experienced firsthand the operational excellence we deliver and the value of the services we provide,” said Core Scientific, Inc. (NASDAQ:CORZ) President and CEO Adam Sullivan. “Together with CoreWeave, we will be well-positioned to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders, who will be able to participate in the tremendous upside potential of the combined company,” he added.

While we acknowledge the potential of CRWV 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.

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