CoreWeave has acquired Core Scientific to expand its data centers for AI and high-performance computing.
- The deal is worth around $9 billion in stock.
- CoreWeave plans to use Core Scientific’s power capacity for AI, not crypto mining.
- Core Scientific shareholders will own less than 10% of the new company.
Deal Details and Shareholder Terms
CoreWeave, a company that provides AI infrastructure, will buy Core Scientific through an all-stock deal. Each Core Scientific (CORZ) shareholder will get 0.1235 shares of CoreWeave Class A stock for every CORZ share they have. This gives them a 66% premium over the closing price of $12.30 on June 25. After the merge, CORZ shareholders will own under 10% of the combined company.
Power Capacity and Future Plans
With this deal, CoreWeave gains access to about 1.3 gigawatts (GW) of power across Core Scientific’s U.S. data centers. There’s another 1 GW of possible expansion. This power will not be used mainly for Bitcoin mining. Instead, CoreWeave plans to support high-performance computing (HPC) and AI workloads. The company may even sell off the crypto mining parts later.
Crypto Mining Tier Shifts
Core Scientific is one of the largest Bitcoin mining companies in North America. It held 977 BTC at the time of the acquisition, ranking it as the 33rd largest corporate BTC holder. However, CoreWeave has stated it does not plan to return to crypto mining, despite both companies having mining backgrounds.
Stock Market Impact and Historical Context
CoreWeave’s stock dropped after the deal was announced. But the price is still more than 300% higher since the start of 2024. CoreWeave had tried to buy Core Scientific before. In 2024, it offered $5.75 per share, valuing the company at just over $1 billion. That offer was rejected. Core Scientific’s market value has now more than tripled due to earnings growth. In Q1 2025, profits hit $580 million, even though revenue was hurt by the latest Bitcoin halving.
Source: cointelegraph.com