CoreWeave to Merge with Core Scientific in $9 Billion Stock Transaction
CoreWeave has announced a significant stock deal to acquire Core Scientific, marking a notable merger in the cryptocurrency sector.
Key Highlights
Cloud and AI infrastructure company CoreWeave has decided to acquire the cryptocurrency mining operation, Core Scientific, for approximately $9 billion in stock.
The agreement entails each share of Core Scientific being exchanged for 0.1235 CoreWeave shares, leading to a valuation of Core Scientific stock at $20.40, reflecting a 66% premium over its last month’s price.
Pending regulatory and shareholder approvals, the merger is projected to finalize by the end of the year.
This strategic move is expected to eliminate over $10 billion in future leasing costs over the next 12 years. Furthermore, CoreWeave will gain ownership of roughly 1.3 gigawatts of power capacity across Core Scientific’s data centers.
CoreWeave shares have seen a pre-market decline of 4%, while Core Scientific shares have dropped about 14.7%, now at $15.48.
