CoreWeave Acquires Core Scientific in $9B Deal, Boosting AI Data Center Capacity

CoreWeave acquires data center provider Core Scientific in $9B stock deal

CoreWeave announced Monday that it signed a $9 billion all-stock deal to acquire Core Scientific, a data center infrastructure provider. As a result of the deal, CoreWeave says it will gain access to more than a gigawatt of data center capacity -- enough energy to power more than 850,000 homes -- that it can rent out for AI training and inference workloads. Much like CoreWeave, Core Scientific previously offered Bitcoin mining services, but now its GPUs will run and train generative AI models. Cloud infrastructure providers are racing to grow their data center footprint to keep up with the seemingly never-ending computational demands of AI companies. Bloomberg reported last week that OpenAI struck a deal to rent an additional 4.5 gigawatts worth of data center capacity from Oracle, expanding on the two companies' already massive Stargate infrastructure deal.

AI hyperscaler buys its cryptomining partner for its AI GPUs and data center infrastructure -- CoreWeave acquires Core Scientific in long-awaited move

AI hyperscaler CoreWeave is buying its longtime server provider partner Core Scientific in a new vertical acquisition in the AI market. CoreWeave and Core Scientific were both cryptocurrency mining companies that pivoted to providing AI servers for rent as the tech hype machine shifted, with Core Scientific providing gradually more and more server space to CoreWeave over the last year. CoreWeave is adding around 1.21 GW of gross power to its capacity with the acquisition of Core Scientific's assets and national data center footprint, and the company expects to be able to add another 1 GW or more to this gross power through expansion. The majority of this power draw comes from Core Scientific's Austin, TX, plant. Core Scientific was previously providing 840 gross MW of power to support CoreWeave's HPC contracts through the rental agreement between the two companies. "This acquisition accelerates our strategy to deploy AI and HPC workloads at scale," said CoreWeave CEO Michael Intrator. "Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI's full potential." Eliminating the overhead of leasing out the server space from Core Scientific is a major boon for CoreWeave, which was already fronting the cost of updating Core Scientific's outdated server space for compatibility with the bleeding edge of Nvidia's HPC products. CoreWeave is a premier partner of Nvidia, a major purchaser of the latest Nvidia HPC products for use in its hyperscale operations. Nvidia has twice now launched its newest flagship server products in CoreWeave operations, including this month's world-first deployment of Grace Blackwell Ultra Superchip systems to CoreWeave. CoreWeave is likely to continue its close partnership and constant purchasing of the newest and brightest Nvidia kit as it expands its data center footprint. The CoreWeave/Core Scientific acquisition is expected to wrap up by Q4 2025, save for any potential legal troubles. Both companies got their starts as cryptomining firms renting out compute to miners, with CoreWeave pivoting into the AI hyperscaling trend and Core Scientific content until this week to exist as a server supplier for CoreWeave. The nature of operating a hyperscaling operation without the incredible capital support of multi-trillion-dollar corporations like Amazon and Google seems tenuous, though this major all-stock transaction seems to indicate CoreWeave's faith in its own ability to thrive in the top-heavy market.

Someone Will Look Dumb in $9 Billion AI Merger

Take a pair of one-time crypto miners, modify their business strategies, add in some retail investors and agree to an all-stock merger. CoreWeave Inc.'s takeover of smaller Core Scientific Inc. is no ordinary piece of deal-making. The journey from here should be fun to watch. Both have shifted focus from crypto to the data centers facilitating the rapid growth of artificial intelligence. Livingston, New Jersey-based CoreWeave went public just a few months ago and its shares climbed to around four times their debut price for a market capitalization exceeding $75 billion. On Monday, it took advantage of that surge to strike a $9 billion all-stock deal for Core Scientific of Dover, Delaware.

CoreWeave's $9B Core Scientific acquisition is a power play

All the GPUs in the world aren't worth much if you don't have a place to put them CoreWeave just added 1.3 gigawatts of datacenter capacity to its rent-a-GPU scheme with the $9 billion acquisition of crypto-mining outfit Core Scientific, the companies announced Monday. Power has become a major constraint for datacenter operators looking to capitalize on the ongoing AI boom. By absorbing Core Scientific, CoreWeave sidesteps this headache while also curbing its reliance on colocation partners. CoreWeave's business model revolves around leasing massive quantities of Nvidia GPUs acquired in large part through debt financing. However, without datacenters to house all those servers and adequate power to run them, the whole enterprise grinds to a halt. Core Scientific is a bitcoin mining outfit that's been moonlighting as a high-density colocation provider for a while now. The company has ten datacenters across Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma, and Texas in various stages of operation and development. Combined, the company boasts 1.3 gigawatts of capacity. About 500 megawatts of that capacity are currently eaten up by mining rigs. Much of the remaining capacity, meanwhile, was already earmarked for CoreWeave anyway. As we learned back in February, CoreWeave is one of Core Scientific's largest customers, with leases totaling roughly 590 megawatts -- roughly two-thirds of the colo's datacenter capacity. It remains to be seen whether CoreWeave, which got out of the crypto game in 2022, will repurpose some or all of Core Scientific's capacity dedicated to mining operations for AI datacenters, or divest that portion of the business entirely. Both options are apparently on the table in the "medium-term." By owning the land and facilities where it parks its GPUs, CoreWeave sees an opportunity to improve its profit margins by eliminating lease overheads. By acquiring the crypto miner, CoreWeave has effectively traded around 10 percent equity in the company for a $10.2 billion discount on its hosting fees and access to an additional gigawatt of future capacity. CoreWeave also argues owning the land under its GPUs opens the door to new forms of financing. As we've previously discussed, CoreWeave's business up to this point has relied on using its fleet of GPUs as collateral for new rounds of debt financing -- usually tied to a long-term commitment from the likes of OpenAI, Google, Microsoft and others. The problem is GPUs aren't exactly an appreciating asset, especially now that their primary source has moved to a yearly release cadence. Real estate by comparison is (usually) an appreciating asset, and it seems CoreWeave intends to leverage that asset to drive down the interest paid on all those loans. As things stand, CoreWeave expects to plow between $20 and $23 billion into AI datacenters by the end of the 2025 fiscal year to meet growing demand for model builders, cloud providers, and hyperscalers. In case you're wondering, under the all-stock deal, shareholders will receive 0.1235 Class A shares in CoreWeave for each share of Core Scientific common stock currently held, making for a total transaction price of about $9 billion. ®

AI data centre group CoreWeave strikes $9bn deal to buy rival Core Scientific

CoreWeave has struck a $9bn deal to acquire its rival Core Scientific, in a transaction set to eliminate $10bn of expensive lease costs for the artificial intelligence data centre operator. CoreWeave announced on Monday that it was acquiring Core Scientific in an all-stock transaction, capitalising on a rally in its share price to seal a deal that will hand the latter company a stake of less than 10 per cent in the overall business. The New Jersey-based group said the deal valued its competitor's shares at about $9bn, significantly higher than a previous takeover attempt last year that Core Scientific then rebuffed as "significantly" undervaluing its shares. After that aborted takeover, CoreWeave struck billions of dollars of long-dated lease transactions with its Delaware-based rival, under which it rented out Core Scientific's high-performance data centres in order to power the AI computing needs of its customers. "Owning Core Scientific's high-performance data centre infrastructure enables us to significantly enhance operational efficiencies and de-risk our future expansion," CoreWeave's chief executive Michael Intrator told analysts and investors on Monday, adding that the deal would help its customers "to unleash the full potential of artificial intelligence". Core Scientific's shares fell as much as 20 per cent on Monday -- having rallied last month on a Wall Street Journal report of a potential takeover -- while CoreWeave's shares slipped nearly 5 per cent. Core Scientific shareholders will receive 0.1235 of newly issued CoreWeave shares if the deal closes as planned in the fourth quarter of 2025. This fixed ratio means Core Scientific shareholders bear the risk of a CoreWeave share-price slide devaluing the transaction. "The price appears low," Cantor analysts wrote in a note, adding that the agreed share price for the takeover was only about 10 per cent higher than Core Scientific's record high in November. "The implied acquisition multiple is too low, we are a bit underwhelmed with the agreed takeout price," they wrote. CoreWeave buys cutting-edge graphical processing units from Nvidia -- which is also a shareholder and one of its biggest customers -- and rents them out to large tech companies to power their AI usage. While CoreWeave had a rocky reception when it floated its shares in March -- scaling back both the size and valuation of its initial public offering -- its shares have since rallied nearly 300 per cent. CoreWeave's market capitalisation is currently about $75bn. CoreWeave's underwhelming debut was largely driven by concerns over its substantial debts and financial complexity, driven in part by the long-dated and expensive nature of its lease liabilities with Core Scientific. The new deal could allay some of those concerns. CoreWeave claimed that the transaction would "eliminate" $10bn of lease costs and estimated that it could achieve $500mn of annual cost savings by 2027. Both CoreWeave and Core Scientific began as cryptocurrency miners, but have pivoted to focusing on AI as demand for vast computing power and large data centres soars. While the two companies share similar names and a history in the bitcoin mining space, they have operated as separate businesses until now. Darin Feinstein, a former nightclub owner and noted cryptocurrency enthusiast, co-founded Core Scientific in 2017 to provide data centre capacity for computer-intensive bitcoin mining companies. The company filed for Chapter 11 bankruptcy protection in 2022, when a cryptocurrency crash roiled its biggest customers, and Feinstein stepped down as group co-chair in 2023. Crypto miners run powerful computing sites where they solve complex mathematical puzzles in order to authenticate transactions and produce digital coins. These data centres are in high demand because the powerful graphics processing chips are used in both crypto mining and AI processing, while large computing facilities are expensive to build from scratch. CoreWeave said Monday's deal would gave it the "potential to repurpose or divest" Core Scientific's crypto mining business "over the medium-term horizon". Intrator further underscored the pivot away from crypto, telling investors: "We are not looking to expand our footprint into cryptocurrencies."

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

CoreWeave founders Brian Venturo, at left in sweatshirt, and Mike Intrator slap five after ringing the opening bell at Nasdaq headquarters in New York on March 28, 2025. Artificial intelligence hyperscaler CoreWeave said Monday it will acquire Core Scientific, a leading data center infrastructure provider, in an all-stock deal valued at approximately $9 billion. Coreweave stock fell about 4% on Monday while Core Scientific stock plummeted about 20%. Shares of both companies rallied at the end of June after the Wall Street Journal reported that talks were underway for an acquisition. The deal strengthens CoreWeave's position in the AI arms race by bringing critical infrastructure in-house. CoreWeave CEO Michael Intrator said the move will eliminate $10 billion in future lease obligations and significantly enhance operating efficiency. The transaction is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approval.

Analysts move to the sidelines on CoreWeave stock after big surge since IPO

Analysts on Wall Street are getting a bit more cautious on CoreWeave stock. Analysts at Mizuho Securities and Stifel downgraded the artificial intelligence cloud computing stock to hold in the last 24 hours. Citigroup added to the dampening sentiment with a downside catalyst watch on the stock in a Tuesday note. Stifel's $115 per share price target calls for about 28% downside from Monday's $159.70 close. Mizuho's $150 per share target implies a slide of about 6%, while Citi's $160 forecast is roughly 0.1% above CoreWeave's Monday close. CoreWeave stock has surged more than 266% over the past three months. Its initial public offering earlier this year was the biggest technology IPO since 2021 . CoreWeave is viewed as a proxy for Nvidia given given the close partnership between the two companies . The stock has also become something of a favorite among retail traders. On Monday , CoreWeave announced plans to acquire data center infrastructure company Core Scientific in a roughly $9 billion transaction. The move raised some eyebrows since it is using all stock in the deal. CRWV YTD mountain CoreWeave stock in 2025. While Mizuho analyst Gregg Moskowitz is optimistic on CoreWeave over the long-term, he said both the stock's outsized run since going public and a balancing risk-to-reward skew as reasons for his downgrade of the stock. "CRWV has very high customer concentration, and its competitive positioning for inference workloads is somewhat unclear due in part to greater potential for custom silicon use," the analyst said. Stifel said that the news of the acquisition, while an overall positive development for the company, now means CoreWeave stock could cool off. "The company's recent announced intent to acquire Core Scientific could further accelerate the strategy to scale deployments of AI and high-performance compute infrastructure," analyst Ruben Roy said. "However, we believe that the re-positioning of the company as a vertical data center provider changes the valuation structure. As such, we view shares as fairly valued." Citi analyst Tyler Radke said that the stock could face near-term downside as investors potentially opt to snag Core Scientific stock at a significant markdown. "We feel near-term shares face downside risk as CRWV bulls have the option to buy CORZ at a discount today (30% off from where proposed M & A price is)," the analyst said. "[W]e'd like to see more customer diversification and progress on profitability."

CoreWeave to buy Core Scientific in $9 billion stock deal

Artificial intelligence hyperscaler CoreWeave announced Monday that it will acquire Core Scientific, a leading data center infrastructure provider, in an all-stock transaction valued at approximately $9 billion. The deal, which is expected to close in the fourth quarter of 2025 pending regulatory and shareholder approval, will give CoreWeave control of 1.3 gigawatts of gross data center capacity across the United States, with an additional gigawatt available for future expansion. "This move will eliminate $10 billion in future lease obligations and significantly enhance our operating efficiency," CoreWeave CEO Michael Intrator said in a statement. The acquisition will allow CoreWeave to bring critical infrastructure in-house as it ramps up computing capacity to meet rising AI workloads. Shares of CoreWeave, which recently went public, fell about 4% on Monday following the announcement, while Core Scientific stock dropped roughly 20%. Both companies' shares had rallied at the end of June after The Wall Street Journal reported acquisition talks were underway. Under the terms of the deal, Core Scientific shareholders will receive 0.1235 shares of CoreWeave for each Core Scientific share they hold, valuing their shares at approximately $20.40 each. That figure represents a 66% premium over Core Scientific's closing stock price before deal talks became public. After the merger closes, Core Scientific shareholders will own less than 10% of the combined company. Core Scientific, which emerged from bankruptcy and relisted on the Nasdaq in 2024, has been pivoting toward high-performance computing workloads to support AI and cloud infrastructure growth.

CoreWeave's $9 billion acquisition of Core Scientific gives an AI roadmap for struggling Bitcoin miners

Now, CoreWeave has helped another crypto mining operation fully pivot. On Monday, the company announced its plans to acquire Core Scientific, a publicly traded Bitcoin miner. The acquisition, which CoreWeave said is expected to close in the fourth quarter, was an all-stock deal for about $9 billion. The deal follows months of announced contracts between CoreWeave and Core Scientific, in which the AI company paid the Bitcoin miner for an increasingly larger share of its processing power. And it comes as Bitcoin mining has become less profitable due to increased competition and decreased margins. Amid the tightening sector, other Bitcoin mining operations have also lent their data warehouses out to AI companies, which require large amounts of computing power for tasks such as training large language models. Still, Core Scientific's pivot underlines the increasingly clear roadmap for Bitcoin miners: dedicate warehouses once reserved for Bitcoin mining servers to servers designed for AI. "It kind of reinforces the thesis that there is probably some shortage when it comes to power," Brett Knoblauch, an analyst at Cantor Fitzgerald, told Fortune, in reference to AI companies' hunger for computing power. At their core, Bitcoin miners are data center operators. They build large warehouses to house thousands of computers designed to support Bitcoin's network. Meanwhile, as much as 20% of global data-center demand comes from artificial intelligence, according to recent research in the academic journal Joule. And about 40% of existing AI data centers will reach their power limits in 2027, predicted the analytics firm Gartner. That hunger for power has AI specialists like CoreWeave looking to build out its fleets of computers to account for rising demand. "The only place where you can get power and size is the miners," said Knoblauch. Core Scientific isn't the only Bitcoin miner shifting to AI. In 2023, Hive Blockchain Technologies changed its name to Hive Digital Technologies and said it planned to use some of its computers for AI. In December, TeraWulf struck a deal with Core42. And in April, the crypto company Galaxy, which has a Bitcoin mining division, said it planned to work with CoreWeave. "Pivoting to HPC compute has been a key theme among BTC Miners with strong energy asset portfolios," Brian Dobson, an analyst at Clear Street, told Fortune. (HPC refers to high-performance computing, a catch-all term that includes AI.) Larger data center providers, including hyperscalers like Amazon, Google, and Microsoft, haven't struck similar deals with a Bitcoin miner, said Knoblauch, the Cantor Fitzgerald analyst. "The only one that's been super aggressive and taking up capacity is CoreWeave," he added. Hyperscalers tend to conduct due diligence on their vendors for longer periods than more nimble upstarts like CoreWeave, he said. And companies like Google or Amazon may be skeptical of Bitcoin miners' ability to convert their simpler facilities into more sophisticated AI data centers, he added. Now that CoreWeave, one of the few firms taking chances on miners, has committed to Core Scientific, it may be more difficult for Bitcoin mining operations to replicate Core Scientific's success. Still, Knoblauch is optimistic that miners, who have built businesses on finding and using cheap electricity to power warehouses of servers, can still ride the energy-intensive AI boom. "Miners are relatively unique in that they are experts when it comes to power," he said. "And they have a lot of it."

AI Giant CoreWeave to Buy Bitcoin Miner Core Scientific in $9B Deal - Decrypt

The deal will give CoreWeave 1.3 gigawatts of gross power across Core Scientific's national data center footprint. AI infrastructure firm CoreWeave has signed an agreement to buy data center provider and Bitcoin miner Core Scientific in an all stock deal valued at around $9 billion, the company announced Monday. The deal will give CoreWeave 1.3 gigawatts of gross power across Core Scientific's national data center footprint, with the potential to expand gradually with another 1 GW, a statement said. Roseland, New Jersey-based CoreWeave's CEO Michael Intrator said the deal would help "CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory." "Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI's full potential," he added. Core Scientific President and CEO Adam Sullivan said the deal would help the miner "accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders." Core Scientific stockholders will receive 0.1235 newly issued CoreWeave stock for each share they hold, according to Monday's statement. The deal, which is expected to close in the fourth quarter of this year, will eliminate more than $10 billion in future lease expenses over the next 12 years, CoreWeave said in the announcement. The firms have had a longstanding partnership. The Wall Street Journal first reported news of a potential deal between the companies in late June. CoreWeave stock was recently trading for $159.74 per share -- down 3.3% on the day, while Core Scientific plunged 17% to price just below $15. The Bitcoin mining and AI data center industries overlap: Both industries use huge amounts of energy and are constantly on the prowl to secure it more cheaply.

CRWV update: CoreWeave $9 billion data deal to buy Core Scientific sends both stocks tumbling

The news sent share of both companies tumbling in early trading on Monday, with CoreWeave (NASDAQ: CRWV) slightly recovering by midday, down almost 3%, while Core Scientific (NASDAQ:CORZ) remained in the red, down a staggering 16%. However, Core Scientific stock is still up about 25% since the deal was first reported by the Wall Street Journal last month, as noted by Investopedia. The deal, which is expected to close by the fourth quarter of 2025 -- subject to both regulatory approval, and approval from Core Scientific's stockholders -- will enable CoreWeave to bring Core Scientific's nationwide data center infrastructure in-house, so it can support large-scale artificial intelligence development as it races to compete in the AI boom. "This acquisition accelerates our strategy to deploy AI and HPC workloads at scale," CoreWeave's CEO and cofounder Michael Intrator said in a statement. "Verticalizing the ownership of Core Scientific's high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory. Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI's full potential."

CoreWeave to acquire data center builder Core Scientific for $9B in stock - SiliconANGLE

CoreWeave to acquire data center builder Core Scientific for $9B in stock Confirming recent rumors, cloud operator CoreWeave Inc. today announced plans to buy data center builder Core Scientific Inc. for $9 billion in stock. Shares of both companies declined on the news. Core Scientific launched in 2017 to build data centers optimized for cryptocurrency mining. It went public in 2022 through a merger with a special purpose acquisition company, or SPAC, and filed for bankruptcy the following year. Core Scientific exited Chapter 11 protection last January with a plan to repurpose its crypto mining facilities for artificial intelligence workloads. Today, the company operates a data center network with 1.3 gigawatts' worth of compute capacity. One gigawatt corresponds to the power usage of more than 700,000 homes. Core Scientific's facilities support direct liquid cooling, which is used by large graphics card clusters to remove heat, and offer 99.999% of uptime. That translates into about five minutes of downtime per year. CoreWeave inked an infrastructure hosting deal with Core Scientific last February, a month after the latter company exited bankruptcy. The initial contract covered 15 megawatts of data center capacity. Over the following year, the companies' collaboration expanded to cover billions of dollars' worth of infrastructure. CoreWeave relies on Core Scientific data centers to power its eponymous public cloud, which is optimized to run AI workloads. The platform offers access to more than 250,000 Nvidia graphics cards. Customers also have access to other hardware and software tools that ease tasks such as deploying AI models to production. Earlier this month, CoreWeave became the first cloud provider to deploy a GB300 NVL72 system (pictured). It's an AI appliance based on the Blackwell Ultra, Nvidia's newest and most advanced graphics card. The chip can run some workloads 50% faster than the earlier Blackwell B200. Each GB300 NVL72 combines 72 Blackwell Ultra chips with 36 of Nvidia's Grace central processing units. There are also 18 BlueField-3 data processing units, or DPUs. The latter chips offload some auxiliary processing tasks from a system's CPUs, which leaves more compute capacity for applications. CoreWeave has developed custom software to manage the graphics cards in its cloud. An application called NLCC detects when one of the servers in an AI cluster malfunctions, removes it from the cluster and adds a new machine. This automated workflow is designed to reduce downtime for customers' AI workloads. "Verticalizing the ownership of Core Scientific's high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory," said CoreWeave Chief Executive Officer Michael Intrator. About 40% of Core Scientific's data center capacity, or 500 megawatts, is currently dedicated to cryptocurrency mining. CoreWeave plans to either sell that infrastructure or adapt it to AI workloads after the deal closes in the fourth quarter. Over the subsequent two years, the company hopes to realize $500 million in annual savings by boosting operational efficiency.

CoreWeave finalizes Core Scientific acquisition for $9B

AI infrastructure provider CoreWeave (CRWV) has finalized its acquisition of Core Scientific (CORZ), aiming to expand its data center capacity to support artificial intelligence and high-performance computing (HPC) workloads. The deal values Core Scientific at approximately $9 billion through an all-stock transaction. Under the terms of the agreement, existing Core Scientific shareholders will receive 0.1235 shares of newly issued CoreWeave Class A common stock for each CORZ share they hold, CoreWeave announced Monday. "Through this acquisition, CoreWeave will own approximately 1.3 GW of gross power across Core Scientific's national data center footprint with an incremental 1 GW+ of potential gross power available for expansion," the announcement said. Core Scientific is one of the largest Bitcoin (BTC) mining and hosting operations in North America. Although CoreWeave's origins are in crypto mining, the acquisition does not necessarily signal a return to the sector. CORZ shareholders will receive a premium of approximately 66% over the closing price of $12.30 per share on June 25. Upon completion of the transaction, Core Scientific shareholders are expected to own less than 10% of the combined company. According to the announcement, CoreWeave sees "potential to repurpose [Core Scientific's assets] toward HPC usage or divest crypto mining business over the medium-term horizon." Related: Bitcoin mining stocks post double-digit gains in weekly rally CoreWeave had been pursuing Core Scientific for over a year, with its initial 2024 bid rejected as being too low. The original offer of $5.75 per share, which valued Core Scientific at just over $1 billion, was firmly declined. Core Scientific's market capitalization more than tripled over the following year, driven by sustained growth in its core business. The company's earnings more than doubled in the first quarter of 2025, reaching $580 million. However, revenue was adversely impacted by the Bitcoin halving. Takeover discussions resurfaced last month, with The Wall Street Journal reporting that a new deal was in progress to reflect Core Scientific's rapid growth over the past year. At the time of its acquisition, Core Scientific was the 33rd largest corporate Bitcoin holder, with 977 BTC on its balance sheet, according to industry data.

Watch These CoreWeave Price Levels as Stock Slips After Announcing $9B Acquisition

Investors will be closely watching CoreWeave (CRWV) shares that slipped Monday, after the Nvidia (NVDA) partner said it will acquire Core Scientific (CORZ) in an all-stock deal for around $9 billion. The transaction, which hit the Wall Street rumor mill last month, values the Core Scientific stock at $20.40 per share, significantly above the $5.75 per share offer from CoreWeave that the company rejected last year. The AI cloud provider said the deal will help "future-proof" revenue growth by leveraging Core Scientific's data center operations. Analysts say that the acquisition will help CoreWeave expand its access to power, which could drive operational efficiency. The two companies have an existing partnership with Core Scientific providing CoreWeave with billions of dollars worth of computing infrastructure. As of Monday's close, CoreWeave shares have surged nearly four-fold from their $40 initial public offering (IPO) price and trade more than 200% higher over the past three months amid investors' enthusiasm for AI-related stocks. Let's dial into the technicals on CoreWeave's four-hour chart to identify important price levels that investors may want to track. Since setting their all-time high (ATH) last month, CoreWeave shares have consolidated in a falling wedge, with the pattern recently finding support near the 50-day moving average. Although the stock retraced in Monday's trading session, the relative strength index (RSI) remains above its 50 threshold to signal neutral price momentum. Let's identify two important overhead areas to watch if the stock resumes it bullish uptrend and also locate several key support levels worth monitoring during possible retracements in the stock. A decisive breakout from the falling wedge could see a bullish move toward $187. This area on the chart would likely attract significant attention near the stock's record high, a level where tactical traders may decide to lock in profits. The next overhead area to watch sits around $235. We projected this target using the bars pattern tool, a technique that analyzes earlier trends to speculate where the price may be headed next. When applied to CoreWeave's chart, we take the stock's initial move higher from late April to early May and overlay its from the rising wedge pattern's lower trendline. This projects a bullish target of around $235, implying 47% upside from Monday's closing price. We selected the prior trend higher as it followed an earlier falling wedge pattern on the chart, providing clues as to how the first leg of a bullish continuation move from a similar chart formation may play out. A breakdown from the falling wedge could see the shares initially retreat to around $122. This level may provide support near a brief period of consolidation that formed on the chart just prior to a modest pullback in the stock during late May. Finally, selling in CoreWeave shares below this price opens the door for a retracement to $97. Investors may seek entry points in this location near the completion of a profit-taking dip, which also occurred in the back half of May. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

CoreWeave to acquire crypto miner Core Scientific - The Economic Times

AI data center firm CoreWeave announced on Monday it will acquire crypto miner Core Scientific in an all-stock deal. The move highlights CoreWeave's push to expand its infrastructure for AI workloads by leveraging Core Scientific's large-scale data center footprint, originally built for energy-intensive cryptocurrency mining operations.AI data center firm CoreWeave said on Monday it would buy crypto miner Core Scientific in an all-stock deal valued at about $9 billion. The offer represents a $20.40 per share value and implies a premium of nearly 66% to Core Scientific stock's close before potential deal talks were first reported. The deal is expected to close in the fourth quarter, and the final price will be determined at that time, the companies said.

Nvidia-backed CoreWeave to buy crypto miner Core Scientific in $9 billion deal

CoreWeave will buy crypto miner Core Scientific in an all-stock deal valued at about $9 billion, the company said on Monday, as AI infrastructure firms race to secure power supply to support their surging workloads. The acquisition highlights how artificial intelligence companies are moving beyond traditional data centers and looking to repurpose the energy-intensive sites and power contracts bitcoin miners built during the crypto boom. The deal will help in the immediate elimination of more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years, CoreWeave said. The offer represents a $20.40 per share value and implies a premium of nearly 66% to Core Scientific stock's close before reports of potential deal talks first appeared in late June. Core Scientific's shares fell 15% before the bell, while Nvidia-backed CoreWeave was last down 4%. The deal is expected to close in the fourth quarter, and the final price will be determined at that time, the companies said. Founded as an Ethereum-focused crypto miner in 2017, CoreWeave pivoted to AI a few years later. It shuttered its mining business after "The Merge", Ethereum's 2022 upgrade, slashed rewards for miners. CoreWeave's revenue has grown at breakneck speed, climbing more than eight-fold last year, according to its IPO prospectus. The deal marks a turnaround for Core Scientific, which filed for bankruptcy in late 2022 following a sharp drop in bitcoin prices and soaring energy costs. The company exited bankruptcy in early 2024. Core Scientific received an unsolicited non-binding proposal from CoreWeave in June last year to acquire all of the company's outstanding shares. At the time, Core Scientific had said that the deal significantly undervalued it and was not in the best interests of the company and its shareholders. The two companies signed a series of 12-year contracts then, including an agreement under which Core Scientific would provide CoreWeave with about 200 MW of infrastructure to power its high-performance computing services.

Why CoreWeave's $9 Billion Deal Isn't About Chips - CoreWeave (NASDAQ:CRWV), Core Scientific (NASDAQ:CORZ)

CoreWeave, Inc. CRWV, an AI cloud-computing startup specializing in AI infrastructure, announced on July 7 its intent to acquire crypto miner Core Scientific, Inc. CORZ in a $9 billion all-stock deal. This acquisition is expected to enable CoreWeave to verticalize its data center footprint, aiming to "future-proof revenue growth" and enhance profitability. Following the announcement, Bank of America Securities analyst Brad Sills maintained a Neutral rating on CoreWeave on Tuesday, setting a price forecast of $185. Also Read: CoreWeave Surges As Microsoft, OpenAI Deals Fuel Revenue Spike, Wall Street Boost As per the terms of the fixed exchange ratio, Core Scientific stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock they hold. Sills noted that the $9 billion equity value is calculated on a fully diluted basis, based on CoreWeave's 5-day volume-weighted average price (VWAP) of $20.40 per share. Sills highlighted that Core Scientific operates large-scale, energy-efficient data centers optimized for high-density workloads, including bitcoin mining and AI. Bitcoin mining companies are expanding their operations beyond cryptocurrency by leveraging their existing power and data center infrastructure for AI workloads. They are now leasing out their power capacity and data center space to meet the surging demand from the AI sector. This strategic shift is exemplified by recent acquisitions within the industry. The analyst emphasized that this proposed acquisition primarily focuses on securing greater access to power rather than acquiring GPUs or CPUs. Core Scientific's property, plant, and equipment base, valued at $650 million as of March, is notably small compared to Sills' estimated $21.5 billion in capital expenditures for CoreWeave in fiscal year 2025. The acquisition provides CoreWeave access to 10 data centers across the U.S. with a total contracted power capacity of 1.3 gigawatts (GW). Of this, approximately 840 megawatts (MW) are already modified for high-performance computing (HPC), with the remaining 500 MW currently supporting bitcoin operations, according to Sills. He observed a 60% overlap with CoreWeave's existing data center locations and 40% from newly added geographies. This diversification will grant CoreWeave access to power in new regions such as Kentucky, Oklahoma, and North Dakota, as per Core Scientific's recent filing. Furthermore, CoreWeave anticipates $500 million in operating expense synergies by calendar year 2027. These savings are expected to stem from the elimination of long-term operating leases (totaling $10 billion over 12 years) and a streamlined operational focus. Sills projects that this would raise the combined entity's adjusted operating margin to 28.4%, up from his current estimate of 26.0% for CoreWeave alone. However, Sills cautioned that achieving these synergies carries execution risk, noting that the market is already modeling an aggressive margin ramp for Core Scientific standalone in fiscal 2027, from 8.0% in Q1 2025 to 22.2%, according to Bloomberg. Price Action: CoreWeave stock traded lower by 3.75% to $153.71, while Core Scientific stock was down 3.07% at $14.38 at last check Tuesday. Read Next: Amphenol Soars 42% To 52-Week High Riding AI Wave Image via Shutterstock CORZCore Scientific Inc$14.18-4.38%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum79.70GrowthN/AQualityN/AValue16.95Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$152.31-4.63%Market News and Data brought to you by Benzinga APIs

CoreWeave, Core Scientific Shares Move Lower On $9 Billion All-Stock Deal - Core Scientific (NASDAQ:CORZ)

CoreWeave Inc CRWV and Core Scientific Inc CORZ shares are moving lower Monday after the companies announced a merger deal. What Happened: CoreWeave and Core Scientific entered into a definitive agreement in which CoreWeave will acquire Core Scientific in an all-stock deal. Under terms of the agreement, Core Scientific shareholders will receive 0.1235 newly issued shares of CoreWeave common stock for each Core Scientific share held. The deal is expected to help CoreWeave verticalize its data center footprint to "future-proof revenue growth" and amplify profitability. Following the transaction, CoreWeave will own approximately 1.3 GW of power across Core Scientific's footprint with another 1 GW plus of potential power available for expansion. "Verticalizing the ownership of Core Scientific's high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory," said Michael Intrator, co-founder, chairman and CEO of CoreWeave. "Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI's full potential." The deal implies a total equity value of $9 billion, which represents a value of $20.40 per share. The acquisition is expected to close in the fourth quarter. Core Scientific shares had been up significantly in recent weeks following reports that the company was in talks with CoreWeave about a potential deal. Even with Monday's pullback, Core Scientific shares are still up about 26% over the past month. Price Action: At the time of publication, CoreWeave shares were down 3.50% at $159.10 and Core Scientific shares were down 16.8% at $14.99, according to Benzinga Pro. Read Next: Pony.ai To Deploy Robotaxis In Dubai, Trials Begin Late 2025 Oracle Offers Deep Discounts To US Government On AI, Cloud And Database Tools: Report Photo: VL-PhotoPro/Shutterstock.com CORZCore Scientific Inc$15.08-16.2%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum91.96GrowthNot AvailableQualityNot AvailableValue15.83Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$159.72-3.32%Market News and Data brought to you by Benzinga APIs

CoreWeave Just Valued Core Scientific Like It's 2021 Again - CoreWeave (NASDAQ:CRWV), Core Scientific (NASDAQ:CORZ)

CoreWeave Inc CRWV just made a big move -- but the market didn't applaud. Shares of Core Scientific Inc CORZ plunged nearly 21% on Monday, even as AI cloud provider CoreWeave announced it will acquire the Bitcoin BTC/USD miner in an all-stock deal. The twist? Beth Kindig, CEO and Lead Tech Analyst at I/O Fund, flagged the valuation in a post on X: The exchange ratio values Core Scientific at a jaw-dropping $9 billion -- or $20.40 per share, a massive premium over its pre-deal price of under $11. That's a valuation level this Bitcoin mining company could have secured only during the heady crypto boom days of 2021. And markets aren't buying it. Read Also: CoreWeave, Core Scientific Shares Move Lower On $9 Billion All-Stock Deal CoreWeave's stock also dipped 3.9% on the news, despite its own red-hot 293% year-to-date rally. While the company touts the acquisition as a strategic play to vertically integrate and secure cheap, scalable power for its AI infrastructure, investors seem skeptical of marrying high-growth AI with high-volatility crypto mining. That's a head-turner in today's market, where Bitcoin miners have struggled with compressed margins, regulatory uncertainty, and post-halving revenue pressure. Core Scientific is down 12% in the past month and still negative year-to-date -- yet CoreWeave's offer implies nearly double the current share price. CoreWeave's bullish bet hinges on AI's insatiable energy appetite. Owning a Bitcoin mining company such as Core Scientific, which operates massive power-dense data centers, could give CoreWeave better control over energy infrastructure. But the question remains: Can a 2021-style crypto valuation fly in a 2025 market? For now, the answer from investors is a resounding, "not yet." Read Next: No Plan B - Tesla's Musk Premium Is On Thin Ice Photo: PJ McDonnell via Shutterstock CORZCore Scientific Inc$14.85-17.5%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum91.96GrowthNot AvailableQualityNot AvailableValue15.83Price TrendShortMediumLongOverviewCRWVCoreWeave Inc$159.90-3.21%$BTCBitcoin$107986.33-1.13%Market News and Data brought to you by Benzinga APIs

This Artificial Intelligence (AI) Stock Has Big Tech Partnerships and Big Potential | The Motley Fool

CoreWeave's actual public offering was a disappointment. It was both undersubscribed and priced lower than the company intended. In fact, Nvidia (NVDA 0.53%) had to come in and help rescue the offering by buying a large position in the IPO. The opening day performance was also a dud, and the stock opened down from its IPO price of $40 and closed even with it, showing underwhelming interest. However, since the late March debut, broad market trends have shifted, and AI stocks are back in vogue as concerns about a trade war and a recession have receded. As a result, CoreWeave stock surged as high as $188 before a recent pullback, though it's still trading at more than triple its IPO price. CoreWeave was founded as Atlantic Crypto, an Ethereum miner, but pivoted its business model in the crypto winter of 2018-2019 when crypto mining fell on hard times and it discovered that the idle GPUs it owned could be rented out instead as computing capacity to run AI applications and models. Today, the company provides generative AI-focused cloud computing infrastructure through its CoreWeave Cloud Platform, which combines proprietary software and cloud services to manage and deliver the AI infrastructure needed to power the leading AI models. As a cloud platform purpose-built for generative AI, CoreWeave is differentiated from the giant hyperscalers -- Microsoft, Amazon, and Alphabet -- some of which are the company's biggest customers. For example, its platform delivers higher performance and more uptime than alternative offerings, allowing its customers to build their AI models faster. In part because of its close relationship with Nvidia, CoreWeave is also regularly the first cloud provider to deploy new AI instances (i.e., resources). In recent weeks, it has made two such announcements. For example, it became the first company to make Nvidia RTX PRO 6000 Blackwell Server Edition instances generally available, which achieve 5.6 times faster large language model inference than the previous generation. Among the risks investors pointed out when CoreWeave went public was its customer concentration. Its prospectus said that Microsoft accounted for 62% of its revenue in 2024. Due to the nature of its business, CoreWeave has a small number of customers, including start-ups like Mistral, Cohere, and OpenAI, and big tech companies like Microsoft, Meta Platforms, Alphabet, IBM, and Nvidia. Management said in its first-quarter earnings report that no company makes up more than 50% of its backlog. While customer concentration is a risk, the relationships with these companies are also a source of strength, especially with Nvidia, which owns 24.2 million shares of CoreWeave, currently worth roughly $3 billion. OpenAI also invested $350 million in the company in March, which is likely worth several times more today. That came as part of a deal for OpenAI to pay $11.9 billion to CoreWeave over five years. Because both companies are investors in CoreWeave, they are more likely to remain customers and support its business, creating a symbiotic relationship. Management is reporting blistering growth. In the first quarter, revenue jumped 420% to $981.6 million, showing off the surging demand for its services as well as the speed with which it's expanding its capacity. Demand for AI computing is expected to grow for years, if not decades, and CoreWeave is poised to be a leader in AI cloud infrastructure. The company is still deeply unprofitable due to the need to acquire GPUs to run its cloud platform, but it makes sense to invest when revenue is growing by triple digits. While CoreWeave is certainly risky, and valuing the stock is difficult right now, it has considerable upside potential, even after tripling from its IPO price in just a few months.

Bitcoin Miner Core Scientific Acquired by CoreWeave in $9B All-Stock Deal

CoreWeave ends $10B hosting pact, gains 977 BTC and full site control. CoreWeave has agreed to acquire Texas-based Bitcoin miner Core Scientific in an all-stock deal worth approximately $9 billion. The transaction, announced on Monday, is aimed at expanding CoreWeave's AI infrastructure capabilities and securing access to over 1.2 gigawatts of data center power across the United States. Core Scientific shareholders will receive 0.1235 of CoreWeave's Class A shares for each of their shares. The deal values Core Scientific at $20.40 per share, representing a 66% premium over its closing price in late June. $9B Deal Between CoreWeave and Core Scientific The boards of both companies have approved the transaction. The deal is expected to close in the fourth quarter of 2025, subject to regulatory approval and a shareholder vote from Core Scientific investors. The agreement also terminates a previously signed 12-year, $10 billion hosting deal between the companies. Under that arrangement, CoreWeave had leased capacity at several of Core Scientific's data center sites. By purchasing Core Scientific, in total, CoreWeave will have access to more than 1.2 gigawatts of power infrastructure. These are facilities constructed to carry out Bitcoin mining, and they will be used in conducting computing-related AI tasks. Michael Intrator, the CEO of CoreWeave, added that the move would be efficient and mitigate the risks of operating business. Background and Previous Bid History Core Scientific had already declared bankruptcy in Chapter 11 in December 2022 following declining Bitcoin prices and increased energy costs. However, the company reorganized and resumed business in early 2024 listed on Nasdaq under the symbol CORZ. Last year in June, Core Scientific rejected a $1 billion acquisition proposal from CoreWeave. Despite the rejection, both firms continued their partnership through the infrastructure hosting agreement signed later in 2024. With the new acquisition, CoreWeave ends that agreement and instead takes full ownership of the sites. This change allows CoreWeave to avoid future lease payments while securing control over essential infrastructure. Core Scientific Market Reaction and Shareholder Distribution Following the announcement, Core Scientific's stock dropped nearly 16% in early trading Monday. At the same time, CoreWeave shares also fell by about 4.6% during the morning session, dropping from around $165 in pre-market to $155.61. The drop reflected investor concerns over the cost and execution of the merger. When the deal is closed, shareholders of Core Scientific will have less than 10% of the merged entity. CoreWeave will walk away with more than 90%, thus it has a free hand in determining the course and functioning of the new business. Expansion of CoreWeave's AI Infrastructure CoreWeave, which rents high-performance computing clusters powered by Nvidia GPUs, has grown rapidly in recent years. The company serves large clients like Microsoft and OpenAI and has focused on expanding access to low-cost power sources. In purchasing Core Scientific, CoreWeave enhances its operations within the AI infrastructure. It also acquires physical locations and long-term power agreements, which allows it to ramp up without using leases through third parties. The merger will have an extensive presence of data center facilities in many states of the United States. Core Scientific also possesses roughly 977 Bitcoin, with a value of more than $100 million, which will be transferred to the balance sheet of CoreWeave.

Why CoreWeave's Acquisition of Core Scientific Is a Brilliant Move | The Motley Fool

Large acquisitions like this $9 billion venture can sometimes blow up in the acquiror's face. However, delving into the details of this deal's terms, not only does the combined company appear to have a high-probability of realizing significant benefits, but the acquisition also appears to have limited risks relative to typical large deals. In this deal, CoreWeave is essentially acquiring its landlord. Founded in 2017, Core Scientific had been a Bitcoin miner, but has more recently been transforming itself into an AI data center co-location host for others, most notably CoreWeave. CoreWeave's rationale for the deal essentially comprises three big points: secure future capacity, operational cost savings, and a lower financial cost of capital. On capacity, CoreWeave will acquire Core Scientific's current 1.3 Gigawatt (GW) data center footprint, including 840 Megawatts (MW) of data centers leased to CoreWeave, along with 500 MW of Core Scientific's Bitcoin mining infrastructure, which can either be repurposed or sold. In addition, and perhaps more important, CoreWeave will acquire over 1 GW of future capacity that Core Scientific has contracted with power providers. The future 1 GW is so important because power capacity is the one big bottleneck in the AI world today. Earlier this year, Microsoft CEO Satya Nadella noted Microsoft was no longer "chip-constrained," in terms of access to Nvidia (NVDA 0.75%) GPUs, but rather "power-constrained." Therefore, CoreWeave's securing of contracted future power capacity significantly derisks its growth plans. And of course, since CoreWeave will now own its infrastructure, it will save $10 billion in future lease payments, thereby cutting out the margin on those lease payments that would have gone to Core Scientific's bottom line. In the acquisition presentation, CoreWeave management noted operational and lease payment savings will net out to over $500 million annually by the end of 2027. At the $9 billion acquisition value, that means CoreWeave is acquiring these cost savings at an 18 forward P/E multiple. That's not only a reasonable market multiple, but CoreWeave is also getting the aforementioned capacity for future growth and 500 MW of Bitcoin mining data centers on top, which CoreWeave can either repurpose or sell. Lease and operational savings also aren't the only savings CoreWeave will realize. As CoreWeave expands, it will have to finance its expansion with either equity or debt. To that end, management noted the combined companies should be able to save "several hundred basis points" on the interest rate it will pay on debt it will need to fund future growth capital expenditures, because of the larger company's size and scale. Normally, major acquisitions entail a certain amount of risk from taking on debt, overpaying, or not realizing anticipated synergies. But in this case, CoreWeave seems to have mitigated all the typical of major acquisition pitfalls. First, CoreWeave isn't using any debt for the acquisition, so it's not increasing the combined companies' leverage ratio. Of course, both CoreWeave and Core Scientific each use debt in their existing capital structures already, so buying Core Scientific with all equity made sense. Not only was paying with equity a necessity, but CoreWeave's high stock price, which has quadrupled over the past three months, makes the Core Scientific buy look quite cheap. Using CoreWeave's March IPO price of $40 would have essentially increased this acquisition's cost four times over. The quadrupling of CoreWeave's stock since then and using that high-priced stock as currency with one quarter the share dilution makes it hard to conclude that CoreWeave is overpaying. And in terms of fully realizing anticipated synergies, the cost savings of the deal are fairly automatic. CoreWeave was already on the hook for $10 billion in future lease payments to Core Scientific, and CoreWeave will simply not have to make those payments now. In short, selling high-priced stock -- some might even say overvalued stock -- to pay off a debt in the form of future lease payments is a pretty sensible move that has probably increased the intrinsic value of the company. Some might ask what Core Scientific's angle is here, since it essentially agreed to be acquired with CoreWeave's high-priced stock. There are probably two reasons: one defensive and one offensive. On the defensive side, Core Scientific was in the middle of a business pivot, as its traditional Bitcoin mining operations had became less profitable. In April 2024, there was a Bitcoin halving, which means miners receive only half as much Bitcoin for each new block mined. As a result, Core Scientific's revenue and profits from mining fell significantly over the past year, which was also exacerbated by its transition to a data center host for CoreWeave and other AI companies. Core Scientific also likely saw CoreWeave's potential as the current leading AI neocloud being a more attractive business than essentially being a landlord for CoreWeave and others. It's also possible that CoreWeave has expertise in running AI clusters that Core Scientific didn't possess, which would make a potential Core Scientific transition into an AI neocloud itself -- essentially a competitor to CoreWeave -- much harder. Thus, the prospect of combining with CoreWeave to become the largest-scaled AI neocloud was too good a future opportunity to pass up, even if Core Scientific shareholders had to pay a fancy-looking price today. The acquisition is expected to close in the fourth quarter of this year. When it does, CoreWeave will undoubtedly be a stronger company. However, whether that makes the stock attractive depends on future execution. CoreWeave's valuation is still quite high, and it continues to carry the risks of its somewhat circular relationship with Nvidia. However, in terms of its debt load, operating cost burdens, and future growth capacity, those risks seem to have been lessened by this attractive deal with Core Scientific.

CoreWeave Pays $9 Billion for Bitcoin Miner Core Scientific | PYMNTS.com

The artificial intelligence (AI) company announced the deal Monday (July 7), saying it helped it "verticalize its data center footprint to future-proof revenue growth and enhance profitability." "CoreWeave expects to generate significant cost savings through streamlining business operations and eliminating lease overhead," the company said in a news release. The release added that the deal allows CoreWeave to pursue infrastructure financing strategies for capital expenditures, reducing its capital costs. It also gives the company more control over a "critical power footprint" with the option of adding future power capacity. "This acquisition accelerates our strategy to deploy AI and HPC workloads at scale," CoreWeave CEO and Co-founder Michael Intrator said in the release. "Verticalizing the ownership of Core Scientific's high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory," Intrator added. "Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI's full potential." Core Scientific provides infrastructure for bitcoin mining and hosting services. According to a report on the deal by The Wall Street Journal, CoreWeave tried to acquire the company last year for a bit more than $1 billion, a number Core Scientific said was too low. The deal is happening at a time when AI startup merger and acquisition (M&A) deals have reached record highs in both deal volume and valuation, as PYMNTS wrote Monday. Samuel Kerr, head of equity capital markets at Mergermarket, told PYMNTS that this is a common trend after a period of maturity in which bigger companies would go after smaller players to absorb their technologies instead of developing their own. "You're going to start to have the big winners start to acquire other technologies rather than doing it in-house," Kerr said. "That's the natural progression." According to Mergermarket data shared with PYMNTS, the value of M&A deals involving AI startups climbed by 288% to $49.9 billion last year compared to 2023. The number of deals rose 53%, to 454. And compared to 2019, the number of deals has increased by 130% while the deal value has jumped by 730%. And already this year, the deal value has surpassed 2024 by 11%, with companies spending a total $55.3 billion on AI-related M&A between Jan. 1 and July 2. Among the recent high profile AI deals was Meta's $14.8 billion purchase of Scale AI, a deal that also involved the tech giant hiring that company's co-founder and CEO Alexandr Wang to lead its new superintelligence lab.

CoreWeave to buy Core Scientific in US$9 billion deal to meet AI power needs

CoreWeave will buy crypto miner Core Scientific in an all-stock deal valued at about US$9 billion, it said on Monday, as AI infrastructure firms race to secure the energy and data center capacity needed to power surging demand. Bitcoin miners' energy-intensive sites and power contracts, built during the crypto boom, have emerged as prime targets for AI companies expanding their computing infrastructure. The deal will help in the immediate elimination of more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years, CoreWeave said. The offer values Core Scientific at $20.40 per share, representing a premium of around 66 per cent to the stock's closing price before reports of deal talks surfaced in late June. Core Scientific's shares fell 22 per cent in morning trading, while Nvidia backed CoreWeave was last down 4.5 per cent. Core Scientific stockholders will receive 0.1235 newly issued CoreWeave stock for each share they hold. "This acquisition accelerates our strategy to deploy AI and HPC (high-performance computing) workloads at scale," said CoreWeave CEO Michael Intrator. The deal is expected to close in the fourth quarter, and the final price will be determined at that time. Pivot gathers pace Bitcoin miners have tapped into the AI boom to diversify beyond cryptocurrency, leasing power and data center space to meet soaring demand from AI workloads. The acquisition is expected to set the bar for bitcoin miners looking to pivot to AI, Bernstein analyst Gautam Chhugani told Reuters, adding that power remains the biggest constraint for AI data center expansion. "CoreWeave gets full control of Core Scientific's entire 1.3 GW power contracted and future pipeline," Chhugani said. Founded as an Ethereum-focused crypto miner in 2017, CoreWeave pivoted to AI a few years later. It shuttered its mining business after "The Merge," Ethereum's 2022 upgrade, slashed rewards for miners. CoreWeave's revenue has grown at breakneck speed, climbing more than eight-fold last year, according to its IPO prospectus. The deal also marks a turnaround for Core Scientific, which filed for bankruptcy in late 2022 following a sharp drop in bitcoin prices and soaring energy costs. The company emerged from bankruptcy in early 2024 and, like several other bitcoin miners, has looked to lean on the AI boom to power growth. Core Scientific first received an unsolicited, non-binding takeover offer from CoreWeave in June 2024. At the time, the company rejected the offer, saying it was significantly undervalued. The two companies later signed a series of 12-year contracts, including one under which Core Scientific agreed to provide CoreWeave with about 200 MW of infrastructure to power its high-performance computing services. CoreWeave, which provides access to data centers and Nvidia-powered AI chips, has a market value of about $79 billion, according to LSEG data. Goldman Sachs is CoreWeave's adviser, while Moelis and PJT Partners are the financial advisers to Core Scientific.

What CoreWeave's $9B Core Scientific Deal Means for Its Stock Price | Investing.com UK

After surviving Chapter 11 bankruptcy in late 2022, and emerging restructured in early 2024, Core Scientific Inc (NASDAQ:CORZ) is at the end of the line. On Monday, AI data center provider CoreWeave Inc (NASDAQ:CRWV) announced an all-stock acquisition of Core Scientific worth around $9 billion, which is based on CORZ price of $20.40 per share on July 3rd, 2025. After the deal is done, CORZ shareholders are expected to own less than 10% of CoreWeave combined. Expectedly, CORZ stock plummeted nearly 20% after market open, while CRWV shares took a minor 4% dip. The deal should go into effect in late 2025, after receiving approvals from both shareholders and the Federal Trade Commission (FTC). The question is, should investors take another look at CoreWeave as the emerging AI hyperscaler? Following the string of bankruptcies of overleveraged companies in the cryptocurrency sector, culminating in the FTX exchange collapse, Bitcoin miner Core Scientific failed to withstand the market shock. This was the classic crypto trap - overextending during the market boom, then failing to keep up with debt maturities when the market deflated. However, by January 2024, Core Scientific pivoted from Bitcoin mining to high performance computing (HPC) and AI hosting. In addition to reducing debt by ~$1 billion, it was CoreWeave that boosted the company's bottom line. Namely, in October 2024, CoreWeave exercised an option with Core Scientific to potentially increase cumulative revenue by $2 billion over 12 years. This would have brought the total cumulative value of contracts with CoreWeave to $8.7 billion, or 500 MW worth of computing power by H2 2026. At that time, Core Scientific had 1.2 GW of contracted power, of which 500 MW was delegated for Bitcoin mining. As of Q1 2025 ending March, Core Scientific built up a portfolio of nine data center sites, two of which are under development. In turn, if CoreWeave proceeds with Core Scientific's road map as planned, the company should gain an additional 1.3 GW of billable hosting power by 2027. As of the latest quarterly report delivered in early May, ending March, Core Scientific has $1.119 billion in total debt. Under the all-stock acquisition of Core Scientific, CoreWeave would assume the company's total debt in addition to all its assets. In the announcement, the company noted that the financial impact will be the "immediate elimination of over $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years." This makes sense, as the bulk of Core Scientific's revenue is already tied to CoreWeave. The acquisition of Core Scientific then makes it possible to consolidate or exit real estate tied to data centers, or terminate duplicate leases and shift workloads to new assets. CoreWeave all but confirmed this plan by noting there is "potential to repurpose toward HPC usage or divest crypto mining business over the medium-term horizon." The key benefit of such an acquisition is to tap into Core Scientific's existing assets which de-risks CoreWeave's future expansion. After all, the actual operating costs would become much clearer, in addition to eliminating lease overhead. As previously mentioned, CoreWeave would gain 500 MW in crypto mining, while 840 MW is available for CoreWeave's core business of HPC hosting. The problem is that the company is already highly leveraged. Since Q1 2024, CoreWeave has been accumulating a string of net losses, typically around $300 million to rapidly expand AI data center operations. After raising $1.4 billion through initial public offering (IPO), CoreWeave has a total debt of $17.2 billion as of Q1 2025. In Q1 2025, ending March, CoreWeave reported a revenue backlog of $25.9 billion. This accounts for revenue that is legally committed but not yet recognized, as Remaining Performance Obligations (RPO) worth $14.7 billion, in addition to the strategic partnership with OpenAI worth $11.2 billion. At the end of that quarter, CoreWeave only deployed 420 MW of computing power against the total 1.6 GW of contracted power. In short, the company's leadership is firmly in the bullish AI camp, believing that investors are still underestimating AI demand. "This acquisition accelerates our strategy to deploy AI and HPC workloads at scale." Michael Intrator, CoreWeave CEO "At scale" is a reference to the Big Three hyperscalers - Microsoft (NASDAQ:MSFT) (Azure), Amazon (NASDAQ:AMZN) (AWS) and Alphabet (NASDAQ:GOOGL) (GCP) - which we covered previously. Despite Big Tech's expected investments over $300 billion in AI during 2025, CoreWeave seems confident there is ample room for growth. After all, the company generated $981.6 million revenue in Q1 2025, an uptick of 420% year-over-year. Furthermore, CoreWeave has access to Nvidia's cutting-edge tech, the latest one being Blackwell Ultra. CoreWeave's bullishness also aligns with our initial view that AI is not a bubble. Rather, it is a concerted effort to bring about a new layer of governance, for both actual governments and corporations. Public-private partnerships (PPPs) that brought $600 billion worth of commitments to Saudi Arabia (and the US) was just the latest example of AI not being a bubble. Moreover, we've maintained all along that AI demand is yet to ramp up with text-to-video content prompts, which are drastically more demanding from a computing standpoint than simple text-to-text outputs. Equally so, AI-powered asset generation is another source of computing demand that will change the entertainment landscape, from video games to movies. At the moment, Tencent (HK:0700) appears to lead the way in that arena. The bottom line is, AI is unlike the crypto sector. At a glance, it may seem that CoreWeave could follow Core Scientific's bankruptcy due to overleveraging, but this would be to underestimate AI demand. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

CoreWeave to buy Core Scientific in $9 billion deal to meet AI power needs

CoreWeave, Inc. is an American technology company founded in 2017, specializing in cloud infrastructure designed for compute-intensive workloads. It has positioned itself as a niche player in a market dominated by generalist giants. Its offering is built on a vertical specialization in artificial intelligence (AI) and related applications, notably high-performance computing (HPC) and graphical rendering. CoreWeave operates a GPU-first architecture, optimized for training and inference of generative AI models. It also targets scientific and financial computing, as well as real-time 3D rendering needs. With its own data centers located in the United States and Europe, the company maintains full control over its infrastructure. This control enables it to deliver high performance, low latency, and flexible deployment capabilities. Some facilities are shared among clients, while others are fully dedicated to a single customer. CoreWeave serves a diverse clientele, ranging from AI startups to research labs, as well as production studios and financial institutions. In addition to its hardware infrastructure, the company develops its own GPU management software. These tools enable intelligent resource allocation, continuous performance optimization, and better cost control. This vertical integration, from hardware to software, enhances the company's competitiveness. CoreWeave stands out through its tailored approach and its ability to meet clients' specific needs. It aims to become the leading provider for AI workloads on a global scale. In a context of surging demand for computing power, its model is appealing due to its specialization and agility.

CoreWeave acquires Core Scientific for $9bn

US-based CoreWeave, a specialist in cloud infrastructure for artificial intelligence, has announced the acquisition of Core Scientific, a major player in cryptocurrency mining, for $9bn. The transaction will be entirely in shares. Our analyst Tommy Douziech recently looked at CoreWeave's unique journey from a former cryptocurrency mining company to a leading cloud provider. Successfully listed on the Nasdaq on March 28, the company is now taking another step forward with this strategic acquisition. The deal involves an exchange of 0.1235 CoreWeave shares for each Core Scientific share. This values Core Scientific at $20.48 per share, a 66% premium to the previous closing price ($18). The goal of this merger is to strengthen CoreWeave's computing capabilities and accelerate its expansion.

CoreWeave to acquire crypto miner Core Scientific

CoreWeave, Inc. is an American technology company founded in 2017, specializing in cloud infrastructure designed for compute-intensive workloads. It has positioned itself as a niche player in a market dominated by generalist giants. Its offering is built on a vertical specialization in artificial intelligence (AI) and related applications, notably high-performance computing (HPC) and graphical rendering. CoreWeave operates a GPU-first architecture, optimized for training and inference of generative AI models. It also targets scientific and financial computing, as well as real-time 3D rendering needs. With its own data centers located in the United States and Europe, the company maintains full control over its infrastructure. This control enables it to deliver high performance, low latency, and flexible deployment capabilities. Some facilities are shared among clients, while others are fully dedicated to a single customer. CoreWeave serves a diverse clientele, ranging from AI startups to research labs, as well as production studios and financial institutions. In addition to its hardware infrastructure, the company develops its own GPU management software. These tools enable intelligent resource allocation, continuous performance optimization, and better cost control. This vertical integration, from hardware to software, enhances the company's competitiveness. CoreWeave stands out through its tailored approach and its ability to meet clients' specific needs. It aims to become the leading provider for AI workloads on a global scale. In a context of surging demand for computing power, its model is appealing due to its specialization and agility.

Nvidia-backed CoreWeave to buy crypto miner Core Scientific in $9 billion deal

(Reuters) -CoreWeave will buy crypto miner Core Scientific in an all-stock deal valued at about $9 billion, the company said on Monday, as AI infrastructure firms race to secure power supply to support their surging workloads. The acquisition highlights how artificial intelligence companies are moving beyond traditional data centers and looking to repurpose the energy-intensive sites and power contracts bitcoin miners built during the crypto boom. The deal will help in the immediate elimination of more than $10 billion of cumulative future lease overhead to be paid for existing contractual sites over the next 12 years, CoreWeave said. The offer represents a $20.40 per share value and implies a premium of nearly 66% to Core Scientific stock's close before reports of potential deal talks first appeared in late June. Core Scientific's shares fell 15% before the bell, while Nvidia-backed CoreWeave was last down 4%. The deal is expected to close in the fourth quarter, and the final price will be determined at that time, the companies said. Founded as an Ethereum-focused crypto miner in 2017, CoreWeave pivoted to AI a few years later. It shuttered its mining business after "The Merge", Ethereum's 2022 upgrade, slashed rewards for miners. CoreWeave's revenue has grown at breakneck speed, climbing more than eight-fold last year, according to its IPO prospectus. The deal marks a turnaround for Core Scientific, which filed for bankruptcy in late 2022 following a sharp drop in bitcoin prices and soaring energy costs. The company exited bankruptcy in early 2024. Core Scientific received an unsolicited non-binding proposal from CoreWeave in June last year to acquire all of the company's outstanding shares. At the time, Core Scientific had said that the deal significantly undervalued it and was not in the best interests of the company and its shareholders. The two companies signed a series of 12-year contracts then, including an agreement under which Core Scientific would provide CoreWeave with about 200 MW of infrastructure to power its high-performance computing services. (Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila)