Core Scientific (NASDAQ:CORZ), a Bitcoin mining company, experienced a surge of up to 40% in pre-market trading after securing a significant AI deal with cloud computing firm CoreWeave and receiving a buyout offer from the same company.
CoreWeave has reportedly made an all-cash offer to acquire Core Scientific, offering a 55% premium over the miner’s three-month average weighted share price as of May 31, according to Bloomberg, citing an anonymous source. This offer values the Austin, Texas-based miner at over $1 billion, taking into account its 178 million outstanding shares. Core Scientific recently emerged from bankruptcy following challenges during a difficult period for cryptocurrencies.
Neither CoreWeave nor Core Scientific have responded immediately to requests for comments on this development.
In addition to the buyout offer, CoreWeave has entered into a 12-year agreement with Core Scientific to host AI-related services, committing around $300 million in capital investments with opportunities for capacity expansion.
This news aligns with a trend of increased mergers and acquisitions in the mining industry. Recently, Riot Platforms (NASDAQ:RIOT) made a hostile bid to acquire peer Bitfarms (NASDAQ:BITF).
CoreWeave secured $1.1 billion in new funding in May, with investors like Coatue Management and Magnetar Capital participating.
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