As a researcher with a background in the technology and finance industries, I find this news extremely intriguing. The potential acquisition of Core Scientific by CoreWeave, coupled with their significant AI deal, could have major implications for both companies and the broader crypto mining sector.


As a researcher, I’ve noticed that Bitcoin miner Core Scientific’s (CORZ) shares experienced a significant surge of up to 40% during the pre-market trading. This uptick can be attributed to two major developments. Firstly, there were reports that cloud computing firm CoreWeave had inked a 200 megawatts (MW) deal for artificial intelligence (AI) operations. Secondly, there were rumors circulating of an all-cash offer from CoreWeave to acquire Core Scientific outright.

According to a report from Bloomberg, sourced from a reliable source, CoreWeave extended an offer on Monday that represents a substantial 55% premium over the miners’ average share price as calculated over the past three months, up until May 31st.

In a deal worth more than $1 billion, the value of Core Scientific, with its headquarters in Austin, Texas, would be established based on approximately 178 million outstanding shares. Following a harsh crypto winter that pushed many players to the brink, Core Scientific emerged from bankruptcy earlier this year.

CoreWeave and Core Scientific didn’t immediately respond to comments on the story.

A leading cloud computing company recently announced a 12-year partnership with a miner, under which the former will host AI-related services for the latter. The cloud company is set to invest approximately $300 million initially, with potential for additional investments to increase capacity if needed. (Source: Company Press Release)

As a researcher studying the mining industry, I’ve noticed an uptick in mergers and acquisitions lately. The most recent development involves Riot Platforms (RIOT) making a hostile takeover bid for their peer company, Bitfarms (BITF), which is also a significant player in the bitcoin mining sector.

In May, CoreWeave secured a funding amounting to $1.1 billion from investors such as Coatue Management and Magnetar Capital.

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2024-06-04 16:41