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CoreWeave to acquire Core Scientific in a $9B all-stock deal

CoreWeave to acquire Core Scientific in a $9B all-stock deal

CoinjournalCoinjournal2025/07/08 18:55
By:Coinjournal
CoreWeave to acquire Core Scientific in a $9B all-stock deal image 0
  • CoreWeave has finalised a deal to acquire Core Scientific for $9 billion.
  • The deal adds 1.3 GW of power capacity for AI and HPC expansion.
  • Under the agreement, CORZ holders will get 0.1235 CoreWeave shares per CORZ share.

CoreWeave has finalized a landmark $9 billion all-stock acquisition of Bitcoin mining giant Core Scientific, in a move that underscores the company’s ambition to dominate AI and high-performance computing infrastructure.

The deal, announced on Monday , marks one of the largest takeovers in the AI infrastructure space this year and follows over a year of pursuit, with previous bids rejected for being undervalued.

CoreWeave, a fast-growing cloud provider specializing in AI workloads, is leveraging the acquisition to significantly expand its power capacity and reduce long-term operational costs.

The deal locks in $9B value with a major premium

CoreWeave’s journey to acquire Core Scientific began with a $1 billion bid in early 2024, which was firmly rejected as undervalued.

Since then, Core Scientific’s market capitalization has more than tripled, thanks to strong operational performance and renewed investor interest in crypto infrastructure.

Now, with this $9 billion agreement, CoreWeave not only gets a foothold in crypto-hosting infrastructure but also gains critical assets to fuel its broader AI ambitions.

Under the terms of the agreement, Core Scientific shareholders will receive 0.1235 shares of newly issued CoreWeave Class A common stock for every share of CORZ they own.

This exchange values Core Scientific at approximately $20.40 per share, which represents a 66% premium over its closing price of $12.30 on June 25.

The merger, expected to close in the fourth quarter of 2025 pending shareholder and regulatory approvals, will result in Core Scientific shareholders owning less than 10% of the combined company.

The stock-based nature of the transaction signals CoreWeave’s long-term confidence in its equity value and future growth strategy.

In the months ahead, attention will turn to how the company integrates these assets, repositions them for high-performance computing, and navigates potential legal challenges from shareholders.

Power capacity takes centre stage

One of the most strategic aspects of the acquisition is the scale of infrastructure CoreWeave will inherit.

The company will assume ownership of approximately 1.3 gigawatts of gross power across Core Scientific’s US data centre footprint.

In addition, the company has identified over 1 gigawatt of potential expansion capacity, giving it unprecedented leverage in scaling AI and HPC operations.

This development is critical, especially as global demand for AI computing power continues to soar and data centre capacity becomes a key constraint.

CoreWeave plans to repurpose much of this infrastructure for AI and HPC tasks, while also leaving open the option to divest some of Core Scientific’s crypto-mining assets in the medium term.

Cost savings and vertical integration boost CoreWeave

Beyond infrastructure, CoreWeave expects the merger to unlock over $500 million in annual run-rate cost savings by the end of 2027.

These savings will come primarily from eliminating more than $10 billion in expected future lease obligations over the next 12 years.

By owning its data centre assets outright, CoreWeave can streamline operations, avoid lease-related risks, and reallocate capital toward more strategic growth investments.

This vertical integration also strengthens the company’s ability to host large-scale deployments of next-generation AI hardware, such as Nvidia’s GB300 NVL72 systems.

Market reaction

While the acquisition is seen as a transformative move for CoreWeave, the immediate market reaction was mixed.

Core Scientific’s shares fell by over 15% following the news, suggesting that some investors felt the premium offered did not fully capture the company’s recent growth.

Core Scientific’s earnings more than doubled in the first quarter of 2025 to $580 million, though its revenue was dampened by the effects of the recent Bitcoin halving.

At the time of the acquisition, the company was the 33rd largest corporate Bitcoin (BTC) holder, with 977 BTC on its balance sheet.

However, CoreWeave has made it clear that this acquisition is not about returning to crypto mining but about reallocating infrastructure for AI and HPC.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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