According to a July 7 announcement, CoreWeave, a rising player in the artificial intelligence industry, has entered a decisive agreement to acquire Bitcoin mining company Core Scientific in all stock transactions.
This strategic move will help enhance CoreWeave’s data center capabilities and expand its AI and high-performance computing (HPC) infrastructure.
Terms and conditions
Under the terms of the agreement, CoreScientific Shareholders will receive 0.1235 shares of CoreWeave Class A common stock for each share held.
The agreement reflects a total stock value of approximately $9 billion on a fully diluted basis and is based on CoreWeave’s five-day volume weighted average price (VWAP) as of July 3rd.
The transaction is expected to close in the fourth quarter of 2025 until regulatory approval is held back.
If completed, the agreement will cut CoreWeave’s long-term lease obligations by over $10 billion, opening the door to more flexible financing options. However, core science shareholders are expected to hold less than 10% of the combined entities.
Following the acquisition, CoreWeave will control approximately 1.3 gigawatts (GW) of total power capacity across Core Scientific’s national data center footprint, allowing an additional 1 GW to be utilized for future expansion.
This move will allow CoreWeave to vertically integrate key infrastructure assets and better support the growing demand for AI workloads.
CoreWeave CEO Michael Intrator said the acquisition is in line with the company’s strategy to efficiently expand its AI deployment. He emphasized that owning Core Scientific’s high-performance infrastructure will reduce the risk of expansion, increase the efficiency of the platform and ensure long-term growth.
Meanwhile, Adam Sullivan, president and CEO of Core Scientific,
“Together with CoreWeave, we accelerate the availability of world-class infrastructure for businesses innovating with AI, while also providing maximum value to shareholders.
Legal scrutiny
Despite the strategic basis behind the transaction, the market’s response to the transaction was negative.
CoreScientific shares fell nearly 17%, while CoreWeave shares fell about 3% during early trading hours on July 7, according to data from Google Finance.
Industry experts have expressed concern about the long-term impact on transaction fairness and shareholder value.
In addition to uncertainty, the Brodsky & Smith law firm has launched an investigation into a potential violation of the fiduciary duties by the board of directors of Core Scientific. The purpose of this investigation is to determine whether the board has failed to ensure fair value for shareholders and to properly assess the terms of sale.
It is mentioned in this article
