(Reuters) -CoreWeave is in talks to buy Core Scientific, after the bitcoin miner rejected an earlier deal from the cloud provider last year, a source familiar with the matter told Reuters. Shares of Core Scientific closed 33% higher on Thursday after the Wall Street Journal first reported the news. Core Scientific has a market value […]
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CoreWeave in talks to buy Core Scientific, source says
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(Reuters) -CoreWeave is in talks to buy Core Scientific, after the bitcoin miner rejected an earlier deal from the cloud provider last year, a source familiar with the matter told Reuters.
Shares of Core Scientific closed 33% higher on Thursday after the Wall Street Journal first reported the news.
Core Scientific has a market value of about $5 billion, as of Friday’s closing price.
Crypto miners use vast amounts of electricity to run their operations and are being increasingly targeted by bigger peers and AI technology companies, as they try to consolidate power supply for their energy-hungry enterprises.
A deal could be finalized in the coming weeks, according to the source. The exact terms being discussed could not be learned.
Core Scientific did not respond to a Reuters request for comment. CoreWeave declined to comment.
Core Scientific received an unsolicited non-binding proposal from CoreWeave in June last year to acquire all of the company’s outstanding shares on a fully diluted basis for $1.02 billion, or $5.75 per share in cash.
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 Juby Babu in Mexico City; Harshita Mary Varghese in Bangalore and Echo Wang in New York; Editing by Mohammed Safi Shamsi and Alan Barona)