tl;dr
CoreWeave is negotiating to acquire Bitcoin miner and compute host Core Scientific. The initial $5.75 per share bid in June 2024 was withdrawn after being deemed too low. Core Scientific’s stock surged 33.7% to $16.44 amid the renewed talks. CoreWeave, which went public with a $75 billion valuation,...
CoreWeave is currently renegotiating to acquire Core Scientific, a Bitcoin miner turned compute host, sparking a significant surge in Core Scientific’s shares by over 33%. This renewed interest is fueled by Core Scientific’s strategic shift toward AI infrastructure and plans to expand its data-center capacity.
The initial offer of $5.75 per share made by CoreWeave in June 2024 was withdrawn after Core Scientific’s board considered it too low. Following the revival of talks, Core Scientific’s stock jumped to $16.44, reflecting investor optimism about the potential deal and the company’s enhanced positioning in the AI and high-performance computing markets.
CoreWeave, known for renting GPUs primarily to Microsoft and other major clients, went public with a $75 billion valuation. The company aims to boost its capacity by leveraging Core Scientific’s extensive power contracts and facilities. Core Scientific, on the other hand, dismissed a previous $1 billion buyout offer but secured long-term hosting agreements worth approximately $3.5 billion in cumulative revenue, diversifying its income away from Bitcoin block subsidies after the April 2024 halving event.
Both companies are working to finalize terms soon, with the possibility of a premium being paid due to Core Scientific’s rapid pivot toward AI infrastructure and a power-constrained data-center marketplace. This acquisition would allow CoreWeave to expand its GPU computing resources efficiently by utilizing Core Scientific’s 724 megawatts of contracted power and brownfield sites, thus avoiding lengthy construction phases.
If the deal goes through, Core Scientific’s shareholders can expect compensation in cash or stock, with the ratio yet to be determined. The union promises to enhance CoreWeave’s capacity to meet surging cloud-AI demands that outpace current hyperscale provider inventories, marking a potentially transformative step in the evolving cryptocurrency and AI infrastructure landscape.