CoreWeave, opens new tab will buy crypto miner Core Scientific, opens new tab in an all-stock deal valued at about $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% to the stock’s closing price before reports of deal talks surfaced in late June.
Core Scientific’s shares fell 22% in morning trading, while Nvidia, opens new tab-backed CoreWeave was last down 4.5%.
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.
PIVOT GATHERS PACE
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.
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