CoreWeave has announced the completion of its acquisition of Core Scientific for $9 billion, strengthening its position in the rapidly growing landscape of high-performance computing and artificial intelligence.
Details of the Deal
CoreWeave acquired Core Scientific in an all-stock deal, where Core Scientific shareholders will receive 0.1235 shares of CoreWeave Class A common stock for each CORZ share owned. This translates to a roughly 66% premium over the closing price of Core Scientific on June 25, which was $12.30.
Impact on Companies
Once finalized, Core Scientific shareholders will hold less than 10% of the combined entity. The acquisition adds approximately 1.3 GW of gross power to CoreWeave's portfolio, allowing the company to pivot towards serving high-performance computing and AI workloads.
Industry Context
Core Scientific, a major player in North American Bitcoin mining, previously rejected an initial bid of $5.75 per share from CoreWeave. Despite significant challenges in the crypto market, the company's valuation and earnings have surged over the past year.
The deal between CoreWeave and Core Scientific highlights ongoing interest in infrastructure that supports high-performance computing in light of the growing demand for technology related to artificial intelligence and computational power.
