CoreWeave, a company specializing in cloud and AI infrastructure, has announced a significant acquisition of the cryptocurrency mining data center operator Core Scientific for approximately $9 billion in stock. Under the terms of the agreement, Core Scientific shareholders will receive 0.1235 shares of CoreWeave for each share they own, valuing Core Scientific’s stock at $20.40—a remarkable 66% premium compared to its price from last month.
The acquisition is poised to finalize by the end of the year, subject to the necessary regulatory scrutiny and approval from shareholders. CoreWeave anticipates that this strategic move will lead to the elimination of over $10 billion in lease expenses over the next 12 years and will expand their power capacity with ownership of approximately 1.3 gigawatts from Core Scientific’s data centers.
However, the news has led to volatility in the stock market, with CoreWeave’s shares experiencing a 4% decline in pre-market trading, while Core Scientific shares fell by 14.7%, landing at $15.48.
It’s worth noting that this acquisition aligns with trends in the industry where cloud and AI infrastructure firms are increasingly consolidating resources to enhance their operational capabilities, potentially paving the way for a stronger market position amidst an evolving technological landscape. As the deal progresses, it could herald a new chapter for both companies, promising innovative developments in cloud and crypto technology.