Core Scientific’s Actions Soar as CoreWeave Offers to Acquire Bitcoin Miner
After announcing a 12-year AI partnership with Core Scientific, CoreWeave has proposed to acquire the Bitcoin mining specialist at a price of $5.75 per share.
This price represents a significant premium compared to the average price of CORZ shares.
According to Bloomberg, CoreWeave, a cloud computing service provider, has proposed to acquire Core Scientific for $5.75 per share.
This offer would represent a 55% premium to the weighted average price of Core Scientific’s shares over the past three months, as of May 31st.
Impact on the Market
This news has led to an impressive 40% surge in Core Scientific’s shares (CORZ) in pre-market trading.
The valuation of the Texas-based company would thus exceed one billion dollars, with 178 million shares in circulation. It is important to note that Core Scientific recently emerged from bankruptcy after being severely impacted by the overall crypto market slowdown.
Strategic Partnership in Artificial Intelligence
In addition to the acquisition offer, a long-term agreement has been signed between CoreWeave and Core Scientific. This 12-year partnership focuses on hosting AI-related services. As part of this agreement, CoreWeave has committed to capital expenditures of around $300 million, with options to further increase capacity.
Broader Context of the Bitcoin Mining Sector
This acquisition offer comes at a time when mergers and acquisitions are becoming increasingly common in the Bitcoin mining sector. For example, Riot Platforms, another major player in Bitcoin mining, has recently made a hostile bid to acquire Bitfarms.
In May, CoreWeave managed to raise $1.1 billion from investors, including Coatue Management and Magnetar Capital.
