CoreWeave in Talks to Acquire Core Scientific

• CoreWeave (CRWV) is in talks to acquire Core Scientific (CORZ), a major digital infrastructure provider for Bitcoin (BTC) mining and AI hosting, with a potential deal nearing completion, as reported by The Wall Street Journal.
• Core Scientific’s stock jumped more than 27% to $15.67, lifting its market value to $3.66 billion and pushing its year-to-date gain to 12%, following reports of acquisition talks.
• The companies’ existing partnership, including 12-year contracts to supply hundreds of megawatts for CoreWeave’s AI operations, positions Core Scientific to capitalize on the AI-driven demand for data-center capacity.

CoreWeave (CRWV), a cloud infrastructure provider specializing in artificial intelligence, is in advanced discussions to acquire Core Scientific (CORZ), a major operator of high-powered digital infrastructure for Bitcoin (BTC) mining and hosting services in North America, according to a report by The WSJ. The potential deal follows an unsuccessful attempt by CoreWeave last year to purchase Core Scientific for $5.75 per share, a proposal that valued the company at over $1 billion but was rejected as undervaluing the business. Core Scientific’s shares surged more than 27% to $15.67 in trading on Thursday, with a temporary halt following the publication of the WSJ report, reflecting strong market enthusiasm for the potential transaction. The company’s market value now stands at approximately $3.7 billion, with the stock up 12% year-to-date.

The renewed acquisition talks highlight the strategic alignment between CoreWeave and Core Scientific, which have maintained a robust partnership. Last June, the two companies inked a series of 12-year contracts under which Core Scientific would supply hundreds of megawatts to host CoreWeave’s operations, a deal projected to generate billions in revenue for Core Scientific. This collaboration underscores Core Scientific’s pivot from traditional Bitcoin mining to capitalizing on the growing demand for data-center capacity driven by the AI boom. CoreWeave, which went public in March of this year with a current market value of about $77 billion, relies heavily on partnerships with major tech firms, with Microsoft (MSFT) accounting for 62% of its 2024 revenue by renting access to Nvidia’s (NVDA) graphics-processing units for companies like Meta Platforms (META) and International Business Machines (IBM).

The report notes that the potential acquisition could be finalized in the coming weeks, provided negotiations proceed smoothly, though specific terms remain undisclosed. Core Scientific’s rapid growth and its critical role in providing infrastructure for both cryptocurrency and AI applications make it an attractive target, likely commanding a significant premium. The company’s stock now trades at more than double CoreWeave’s previous offer, signaling strong investor confidence in its strategic repositioning. As the AI sector continues to strain global data-center resources, Core Scientific’s infrastructure, combined with CoreWeave’s expertise in AI cloud computing, could create a powerful synergy to meet the escalating computational demands of tech giants and emerging AI-driven enterprises.

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