CoreWeave down; AI data center firm to buy Core Scientific in $9 billion deal

Core Scientific

07/07/2025 17:01

Updates

** Shares of AI data center firm CoreWeave CRWV.O down 3.2% at $159.88

** CRWV to buy crypto miner Core Scientific CORZ.O in an all-stock deal valued at about $9 billion

** CORZ falls 17.1% to $14.92

** CRWV used its "overpriced stock" to buy CORZ at a higher price, but since CORZ is losing money, the all-stock deal will still dilute CRWV's existing shareholders, Gil Luria, managing director, D.A. Davidson & Co, said

** The offer represents a $20.40 per share value and implies a premium of nearly 66% to Core Scientific stock's close before potential deal talks were first reported

** Companies say the deal is expected to close in Q4, and the final price will be determined at that time

** As of last close, CORZ up ~28% this year

** In June 2024, CORZ had rejected Nvidia-backed NVDA.O CRWV's buyout offer of $5.75/share, which valued CORZ's business at about $1 bln at the time

 (Reporting by Jaspreet Singh and Ateev Bhandari in Bengaluru)

 ((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))