Shares of Core Scientific Inc. (NASDAQ:CORZ) are up Thursday following a report suggesting CoreWeave inc. (NASDAQ:CRWV) is in discussions to acquire the bitcoin mining and hosting company.
What To Know: According to the Wall Street Journal, the two companies are in talks and could finalize a deal in the coming weeks if talks proceed without issue. CoreWeave previously made an unsuccessful attempt to acquire Core Scientific about a year ago, offering $5.75 per share at the time; a bid that was rejected for undervaluing the business. Core Scientific shares now trade at more than double that earlier offer, giving the company a market capitalization of roughly $3.7 billion.
Core Scientific operates one of the largest high-powered digital infrastructure platforms in North America focused on bitcoin mining and hosting services. The company has seen growing interest amid a shortage of data center space and power capacity as demand from AI-related workloads continues to rise. It also maintains a significant 12-year hosting partnership with CoreWeave, delivering large-scale capacity for AI computing operations.
CoreWeave, which went public in March and is valued at approximately $75 billion, specializes in cloud infrastructure for AI workloads. It serves major clients like Microsoft, its largest customer and acts as a middle layer offering access to Nvidia GPUs for firms such as Meta and IBM.
While Core Scientific shares rose on the takeover speculation, CoreWeave's stock slipped slightly reflecting typical market reactions in acquisition scenarios where the buyer faces potential integration or financing challenges.
Price Action: Core scientific shares were up 24% at $15.25 and Coreweave shares were down 1.13% at $157.80 at the time of writing, according to Benzinga pro.
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