Core Science (NASDAQ:CORZ), a Bitcoin mining company, saw its shares surge as much as 40% in pre-market trading on buyout offers from the company, including a significant AI deal with cloud computing company CoreWeave.
CoreWeave has reportedly made an all-cash offer to acquire Core Scientific, according to Bloomberg, citing anonymous sources. This implies a 55% premium to the miner’s three-month average weighted share price as of May 31. The offer values the Austin, Texas-based miner at more than $1 billion, considering its 178 million outstanding shares. Core Scientific recently emerged from bankruptcy after struggling during a harsh cryptocurrency winter.
Neither CoreWeave nor Core Scientific immediately responded to requests for comment on the matter.
In addition to the proposed acquisition, CoreWeave signed a 12-year agreement with Core Scientific to host AI-related services, pledging a capital investment of approximately $300 million with options for capacity expansion.
This development follows a growing trend of mergers and acquisitions in the mining sector. In particular, Riot Platform (NASDAQ:RIOT)) recently made a hostile bid to acquire peer Bitfarms (NASDAQ:BITF).
CoreWeave raised $1.1 billion in new funding in May through investors including Coatue Management and Magnetar Capital.
Featured Image: Freepik
Please see disclaimer