AI infrastructure firm CoreWeave has signed an agreement to buy data center provider and Bitcoin miner Core Scientific in an all stock deal valued at around $9 billion, the company announced Monday.
The deal will give CoreWeave 1.3 gigawatts of gross power across Core Scientific‘s national data center footprint, with the potential to expand gradually with another 1 GW, a statement said.
Roseland, New Jersey-based CoreWeave‘s CEO Michael Intrator said the deal would help "CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory."
"Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI‘s full potential," he added.
Core Scientific President and CEO Adam Sullivan said the deal would help the miner "accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders."
Core Scientific stockholders will receive 0.1235 newly issued CoreWeave stock for each share they hold, according to Monday‘s statement.
The deal, which is expected to close in the fourth quarter of this year, will eliminate more than $10 billion in future lease expenses over the next 12 years, CoreWeave said in the announcement.
The firms have had a longstanding partnership. The Wall Street Journal first reported news of a potential deal between the companies in late June.
CoreWeave stock was recently trading for $159.74 per share—down 3.3 on the day, while Core Scientific plunged 17 to price just below $15.
The Bitcoin mining and AI data center industries overlap: Both industries use huge amounts of energy and are constantly on the prowl to secure it more cheaply.
Bitcoin miners—which process transactions on the leading cryptocurrency‘s network—have been eyeing AI in recent years as a way of making extra money.
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