Background and Recent Developments
Cloud and artificial intelligence infrastructure firm CoreWeave has reopened acquisition negotiations with Bitcoin miner Core Scientific, according to a recent report from the Wall Street Journal. This development comes about a year after Core Scientific previously rejected CoreWeave’s buyout proposal, stating it significantly undervalued the company and was not in the best interests of its shareholders[3].
Proposed Deal and Market Reaction
The talks could result in a finalized agreement within the coming weeks, though the exact terms of a potential deal have not been disclosed. Following reports of the renewed discussions, Core Scientific's shares surged by about 8%, pushing its market capitalization close to $4 billion[3]. One year ago, CoreWeave’s bid was valued at approximately $5.75 per share, totaling around $1 billion, significantly less than Core Scientific's current market valuation[1][3].
Industry Context
The cryptocurrency mining sector is witnessing increased consolidation, with larger technology and
AI companies seeking to secure power supply and infrastructure to support their energy-intensive operations. Crypto miners require substantial electricity, making partnerships and acquisitions by firms like CoreWeave increasingly strategic[3].
Previous Collaboration and Ongoing Talks
Despite turning down the earlier offer, Core Scientific and CoreWeave have maintained business relations. The two companies entered a series of 12-year contracts last year, including an agreement in which Core Scientific committed to providing CoreWeave with approximately 200 megawatts of infrastructure for high-performance computing services[3].
Summary
- CoreWeave is again in acquisition talks with Core Scientific after a previously rejected offer last year.
- Core Scientific’s valuation has increased significantly since the first proposal, and final deal terms are still under negotiation.
- The renewed talks follow a wave of consolidation and strategic partnerships within the crypto mining and AI infrastructure sectors.
- Both companies remain silent on the rumored acquisition, declining to comment when approached by the media[3].
