Core Scientific stock has seen a significant rise due to CoreWeave's interest in acquisition. This article delves into the reasons behind the interest and market context.
CoreWeave Revives Interest in Acquiring Core Scientific
According to The Wall Street Journal, CoreWeave, a cloud giant valued at over $75 billion, is reviving its acquisition intentions toward Core Scientific (NASDAQ: CORZ). While the terms of any proposed deal have not been disclosed, analysts believe that any new offer will likely exceed last year’s withdrawn bid of $5.75 per share.
Reasons Behind CoreWeave's Interest in Core Scientific
CoreWeave's interest seems tied to Core Scientific’s transformation from a pure Bitcoin miner into a diversified compute infrastructure provider. In late 2024, Core Scientific signed a 12-year agreement with CoreWeave to supply up to 200 megawatts of power capacity for its GPU clusters, which are essential for machine learning workloads and enterprise AI models. This agreement is expected to generate $3.5 billion in revenue over its term.
Market Context and Analyst Expectations
The revival of CoreWeave's buyout interest comes amid growing demand for AI infrastructure as cloud providers seek space, power, and hardware. Analysts anticipate that a new offer from CoreWeave could be worth between $25 and $30 per share, reflecting a premium of 50-80% over current levels.
The 33% increase in Core Scientific stock reflects more than just merger speculation; it indicates changing dynamics in mining infrastructure. With shifting strategies and robust long-term contracts, Core Scientific emerges as a valuable asset in a resource-constrained market.
