Report says CoreWeave in talks to acquire Core Scientific, which surged over 30%
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Report says CoreWeave in talks to acquire Core Scientific, which surged over 30%
The acquisition deal between CoreWeave and digital infrastructure company Core Scientific could be finalized in the coming weeks, provided there are no major disagreements between the two parties.
Navigating Web3 tides with focused insightsBy Bob Yee, Wall Street Insights
AI cloud services giant CoreWeave is re-engaging in acquisition talks with digital infrastructure firm Core Scientific—about a year after its previous bid was rejected.
On June 26, media reports indicated that CoreWeave’s potential acquisition of Core Scientific could be finalized within weeks, provided no major disagreements arise. The surge in artificial intelligence demand has intensified shortages of data center space and power resources, prompting companies to pursue mergers and acquisitions to secure additional computing capacity and infrastructure capabilities.
Core Scientific is among several bitcoin mining firms seeking to capitalize on the AI boom. The explosive growth of AI applications has led to acute shortages of data center space and electricity—creating an opportunity for crypto mining companies with extensive computing infrastructure to pivot their operations.
Following the news, Core Scientific's stock briefly halted trading before resuming and closing up over 32%. The company currently has a market capitalization of approximately $3.7 billion and has seen its share price decline about 15% year-to-date. CoreWeave, valued at around $75 billion, completed its IPO earlier this year in March.
Last Year’s Rejected Bid, Share Price Now Doubled
Reports confirm that last year, CoreWeave proposed acquiring Core Scientific at $5.75 per share, valuing the company at over $1 billion at the time. However, Core Scientific rejected the offer as too low, stating it would instead focus on its existing partnership with CoreWeave.
Today, Core Scientific’s share price stands at more than double the previous acquisition offer. While specific terms of the current negotiations have not been disclosed, analysts expect the company to command a significant premium given its rapid business growth.
The two companies have maintained a multi-year partnership. In June last year, they announced a series of 12-year agreements under which Core Scientific will provide hundreds of megawatts of hosting services for CoreWeave’s operations—expected to generate billions of dollars in revenue for Core Scientific.
Analysts note that if this potential deal goes through, it would further solidify CoreWeave’s position in the AI infrastructure sector while expanding its access to critical computing resources and power capacity.
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