CoreWeave, Inc. (CRWV) Stock: Slides 4.59% Amid $9B Core Scientific Acquisition Deal
TLDR
CoreWeave Drops 4.6% After $9B Deal to Acquire Core Scientific in Stock Swap
CoreWeave Acquires Core Scientific to Secure 1GW Power for AI Expansion
Market Reacts Sharply as CoreWeave Buys Core Scientific in $9B Stock Deal
CoreWeave Eyes Growth, Snaps Up Core Scientific for Power Infrastructure
Core Scientific Shareholders to Get 0.1235 CRWV Shares in $9B Acquisition
CoreWeave, Inc. (CRWV) experienced a sharp decline in early trading on Monday, dropping 4.59% to $157.61 by 9:47 AM EDT. The decline followed the company’s announcement of a $9 billion all-stock deal to acquire Core Scientific. The stock fell from around $165 in pre-market trading, reflecting immediate market reaction to the transaction.
CoreWeave plans to acquire Texas-based bitcoin miner Core Scientific in a strategic move to secure critical data center infrastructure. The deal is structured as an all-stock transaction and values Core Scientific at $20.40 per share. This marks a 66% premium over Core Scientific’s price before deal talks reemerged in June.
The agreement allows CoreWeave to cancel $10 billion in future lease commitments tied to long-term contracts with Core Scientific. Pending regulatory approval, both companies expect the transaction to close in the fourth quarter of 2025. CoreWeave’s board and Core Scientific’s board have both approved the terms.
Core Scientific Acquisition Strengthens Power Infrastructure Access
CoreWeave targets more than 1 gigawatt of power capacity, ensuring sustained access for its AI-related workloads. The transaction includes key Core Scientific sites already hosting CoreWeave’s high-performance computing infrastructure. CoreWeave previously entered a 12-year deal to access about 200 MW from Core Scientific’s facilities.
🚨 CoreWeave to Acquire Core Scientific (CORZ) pic.twitter.com/zlUvpUMx9U
— matthew sigel, recovering CFA (@matthew_sigel) July 7, 2025
The acquisition grants CoreWeave direct control over power-intensive infrastructure formerly built for crypto mining. This shift reflects a broader trend where firms adapt mining sites to meet growing computational demands. CoreWeave positions itself to scale faster without being constrained by third-party energy providers.
Core Scientific filed for Chapter 11 bankruptcy in December 2022 amid plunging bitcoin prices and rising energy costs. The firm reemerged from bankruptcy in early 2024 and resumed Nasdaq trading under the ticker CORZ. As part of the merger, Core Scientific shareholders will receive 0.1235 CoreWeave shares for each of their shares.
Stock Movement and Market Sentiment Following the Deal
CoreWeave stock dropped significantly during early trading, reflecting short-term uncertainty surrounding the acquisition. Meanwhile, Core Scientific’s shares fell by nearly 20% at the market open despite the premium offer. The move highlights market skepticism over the long-term value and integration risk of the acquisition.
CoreWeave has expanded rapidly since shifting from crypto mining to high-performance computing. As noted in its IPO filings, the company’s revenue surged more than eight times in 2023. By acquiring Core Scientific, CoreWeave eliminates high future lease costs while locking in energy capacity to support expansion.
CoreWeave remains confident in its strategy to control infrastructure and reduce operational risk. The company expects the transaction to enhance long-term performance by ensuring direct access to scalable energy. Once completed, CoreWeave will hold over 90% of the combined company, while Core Scientific holders retain a smaller stake.
Strategic Background and Deal History
CoreWeave began as a crypto-focused company but transitioned to high-performance cloud computing after Ethereum’s 2022 upgrade reduced mining profitability. The company previously made a non-binding proposal to acquire Core Scientific in June 2024, which was initially rejected. However, the firms maintained ties through their infrastructure agreement, which was signed last year.
Core Scientific owns approximately 977 BTC valued at over $100 million, offering additional digital asset exposure post-merger. The acquisition provides CoreWeave with physical sites, long-term power contracts, and expanded hosting capacity across the U.S. These assets support CoreWeave’s strategic push to scale computing operations without relying on third-party leases.
CoreWeave aims to integrate operations to improve efficiency and vertical control. The company currently serves enterprise clients with Nvidia-powered computing clusters, positioning itself as a growing force in the infrastructure space. The latest move aligns with its mission to ensure access to power and facilities needed to meet increasing computing demands.
The post CoreWeave, Inc. (CRWV) Stock: Slides 4.59% Amid $9B Core Scientific Acquisition Deal appeared first on CoinCentral.
Filed under: News - @ July 7, 2025 2:23 pm