CoreWeave, backed by Nvidia, has announced plans to acquire Core Scientific in a deal valued at $9 billion. The announcement has led to declines in stocks of several Bitcoin mining companies.
Deal Between CoreWeave and Core Scientific
CoreWeave has signed a definitive agreement to acquire Core Scientific, offering its shareholders stock that equates to 0.1235 newly issued shares of CoreWeave for each share of Core Scientific. The deal is valued at $9 billion.
Market Reaction to the Deal
Following the announcement, Core Scientific stock fell by 20%. Additionally, shares of other Bitcoin mining companies such as MARA Holdings, Riot Platforms, and CleanSpark dropped between 5% and 10%.
Outlook for CoreWeave and Core Scientific
According to CoreWeave's CEO Michael Intrator, the acquisition will enhance operational efficiency and eliminate $10 billion in future lease obligations. The deal is expected to close in the fourth quarter of this year, pending the fulfillment of customary conditions.
The deal between CoreWeave and Core Scientific touches on essential aspects of growth strategy and optimization for both companies. However, the sharp drop in Bitcoin mining stocks raises questions about the future of the sector.
