Bitcoin miner Core Scientific (NASDAQ:CORZ) has rejected an all-cash acquisition offer from Nvidia-backed cloud provider CoreWeave, saying the offer undervalues the company.
“The Board of Directors concluded that the CoreWeave proposal significantly undervalues the Company and is not in the best interests of the Company and its shareholders,” Core Scientific said in a statement.
Core Scientific received an unsolicited, non-binding offer from CoreWeave on June 3. The offer aimed to acquire all of Core Scientific’s outstanding shares on a fully diluted basis for $1.02 billion, or $5.75 per share in cash.
Despite the rejection, the two companies signed a series of 12-year contracts on the same day. These agreements include a deal in which Core Scientific will provide approximately 200 MW of infrastructure to CoreWeave to support high-performance computing services.
Cryptocurrency mining requires significant power, so large corporations and AI technology companies are targeting these miners to integrate power supplies for energy-intensive tasks.
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