CoreWeave Acquires Core Scientific in a Landmark $9 Billion Deal
In a significant development at the intersection of cryptocurrency mining and high-performance computing, CoreWeave has finalized its acquisition of Core Scientific. This all-stock transaction, valued at approximately $9 billion, represents a strategic expansion for both companies into artificial intelligence (AI) and high-performance computing (HPC) workloads.
Transaction Details
Under the agreement, Core Scientific shareholders will receive 0.1235 shares of CoreWeave Class A common stock for each share held, representing a 66% premium over Core Scientific’s June 25 closing price. Post-transaction, Core Scientific shareholders will own less than 10% of the combined company. The acquisition provides CoreWeave with approximately 1.3 GW of power capacity across Core Scientific’s data centers, plus over 1 GW of potential expansion capacity.
Strategic Direction
While Core Scientific operates one of North America’s largest Bitcoin mining and hosting businesses, CoreWeave plans to potentially repurpose these assets for HPC applications. This move aligns with CoreWeave’s focus on AI and HPC sectors, despite its roots in cryptocurrency mining.
Market Impact
Following the announcement, CoreWeave’s stock declined slightly but maintains a 300% year-to-date gain. The acquisition concludes more than a year of negotiations, with CoreWeave’s initial 2024 offer having been rejected. Core Scientific’s market value tripled during this period, despite revenue challenges from the Bitcoin halving.
Future Outlook
The integration of Core Scientific’s assets positions CoreWeave to significantly expand its AI and HPC capabilities. This transaction highlights the evolving use of data center infrastructure and creates new possibilities at the convergence of cryptocurrency mining and advanced computing technologies.
