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07/09 10:15

AI company CoreWeave to buy Bitcoin mining giant C

AI company CoreWeave to buy Bitcoin mining giant Core Scientific for $9 billion

“Including the elimination of lease overhead, this transaction will add $500 million in estimated full-year cost savings by the end of 2027 through streamlined operations,” the announcement said.

Bitcoin mining company Core Scientific has announced that it will acquire artificial intelligence infrastructure firm CoreWeave in an all-stock deal.

The deal is expected to close in the fourth quarter of this year, according to a press release. Core Scientific shareholders will receive 0.1235 newly issued CoreWeave Class A shares at a fixed exchange ratio for each Core Scientific share they own.

The total equity value is approximately $9 billion. The partners will determine the final price upon closing of the deal.

 Additionally, at that point, Core Scientific shareholders will own less than 10% of the combined company, the announcement said. 

Furthermore, the companies expect to “immediately eliminate” more than $10 billion in aggregate future lease overhead costs. These will be paid for the existing contract sites over the next 12 years. 

Including the elimination of lease overhead costs, this transaction adds $500 million in estimated total annual cost savings by the end of 2027 due to streamlined operations,” the announcement noted. 

The teams said the benefits of the acquisition also include the ability to pivot to HPC or sell the cryptocurrency mining business in the medium term, as well as additional access to various sources of financing at a “more attractive cost of capital.” 

Meanwhile, the two companies have been in merger talks for some time. A previous $1 billion offer was rejected last year.

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