NVIDIA's son CoreWeave announces an $9 billion acquisition of Bitcoin mining company Core Scientific, at a 66% premium.

CoreWeave announced on July 7 that it will acquire Bitcoin miner Core Scientific for approximately $9 billion in an all-stock deal, with a transaction premium of 66%, expected to be completed by the end of 2025. The CoreWeave press release stated that Core Scientific shareholders can exchange each share for 0.1235 shares of CoreWeave Class A common stock. (Background: CoreWeave, dubbed 'NVIDIA's favorite child', reportedly wants to acquire Bitcoin mining company Core Scientific, resulting in a 33% jump in CORZ stock price) (Additional context: Supported by Nvidia, valued at $8 billion in four years! What kind of entity is CoreWeave?) The cloud and AI infrastructure company, known as 'NVIDIA's favorite child', announced on July 7 that it will acquire Bitcoin miner Core Scientific for approximately $9 billion in an all-stock deal, with a transaction premium of 66%, expected to be completed by the end of 2025. The CoreWeave press release noted that Core Scientific shareholders can exchange each share for 0.1235 shares of CoreWeave Class A common stock. Acquisition motivation: Vertical integration of Computing Power Since its IPO in March of this year, CoreWeave has been seeking to firmly control the infrastructure for AI and high-performance computing (HPC). Core Scientific's data centers, distributed across seven states in the U.S. and currently having 1.3 GW of power, are the key infrastructure required by CoreWeave. CEO Michael Intrator emphasized: 'This acquisition accelerates our strategy for large-scale deployment of AI and HPC workloads, significantly improving operational efficiency and reducing expansion risk.' After the transaction is completed, CoreWeave will convert its previously decentralized rental data centers into owned assets to further strengthen the resilience of the Supply Chain. The turnaround value of Core Scientific Core Scientific has successfully transitioned from a volatile Bitcoin mining business to AI computing services. The company signed a 12-year, $3.5 billion AI hosting agreement with CoreWeave last year, and is now merging under the same roof. Additionally, besides its existing capacity, Core Scientific still holds over 1 GW of expansion potential, regarded by CoreWeave as a 'hard asset' gold mine. Financial benefits and market concerns CoreWeave estimates that vertical integration can save over $10 billion in rent over 12 years, and reduce operating costs by $500 million annually before the end of 2027. The company stated that the all-stock structure has a neutral impact on leverage ratios. However, it is worth noting that on the day the news was announced, the stock prices of both companies fell, indicating that investors are cautious about the 66% premium and equity dilution. Among them, CoreWeave (CRWV) reported $159.73 in the U.S. stock market on July 8, Taiwan time, down 3.32%, with a market capitalization of approximately $76.834 billion; Core Scientific (CORZ) experienced a larger decline of 16.19%, reporting $15.09, with a market capitalization of about $4.49 billion. Notably, last year, CoreWeave had made an unsolicited acquisition proposal to Core Scientific, planning to acquire all outstanding shares of Core Scientific for $1.02 billion, or $5.75 per share in cash. However, Core Scientific at that time deemed the proposal significantly undervalued the company and not in the best interests of the company and shareholders, thus rejecting the acquisition. Currently, the acquisition agreement has reached $9 billion, nearly nine times the acquisition price last year, which may be one of the potential factors for investors selling both stocks. Industry Outlook: Acceleration of Computing Power Competition Although both parties have reached a transaction agreement, the deal still requires regulatory approval and the Core Scientific shareholders' meeting, thus there remain variables. However, in the current context of AI computing shortages, cloud service providers will undoubtedly compete for the two key resources: energy and data centers. If the integration proceeds smoothly, CoreWeave is expected to compete head-on with giants like Amazon, Microsoft, and Google, while also providing a transformation example for other mining background companies. Will the $9 billion gamble lead to long-term advantages? The market needs time to verify, but the computing power war has already begun. Related Reports Bitcoin rebounds! Bankrupt miner Core Scientific offloads mining rigs, settling $38.6 million debt The largest mining company revives! Core Scientific secures $72 million financing from B Riley, stock price surges by 200% Analysis: North America's largest Bitcoin mining company Core Scientific is on the brink of bankruptcy, Celsius lit the first fire. (NVIDIA's favorite child CoreWeave announces $9 billion acquisition of Bitcoin mining company Core Scientific, premium of 66%) This article was originally published in BlockTempo, the most influential Blockchain news media.