Core Scientific rejects CoreWeave buyout bid after big HPC deal
The post Core Scientific rejects CoreWeave buyout bid after big HPC deal appeared on BitcoinEthereumNews.com.
Though Core Scientific was willing to ink a deal with CoreWeave, the bitcoin miner has turned down the cloud provider’s offer to buy the company. CoreWeave and Core Scientific on Tuesday entered into various 12-year contracts whereby the bitcoin miner will offer roughly 200 megawatts (MW) of infrastructure to host CoreWeave’s high-performance computing (HPC) services. CoreWeave followed that deal up by offering to buy all outstanding Core Scientific shares in cash for $5.75 per share. Core Scientific’s stock price was $7.30 Thursday morning after jumping 40% on Tuesday on the back of the HPC contract. The company’s board of directors determined 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 Thursday press statement. It is unclear if CoreWeave will make another offer. A spokesperson did not immediately return a request for comment. Just getting started The rejection comes as Core Scientific has touted the value of its infrastructure. Read more: Rival miners Marathon, Core Scientific each think they have an edge over peers The Texas-based miner’s latest deal with CoreWeave proves it seeks to lock in long-term projected revenues through that business line. But the company is just getting started, as supporting artificial intelligence (AI) applications will continue to be a key part of its strategy, CEO Adam Sullivan told Blockworks this week. Of Core Scientific’s 1.2 gigawatts of contracted power capacity, the company can provide about 500 MW of HPC power tailored for alternative compute workloads, he noted. Cloud provider CoreWeave is set to use about 40% of that 500 MW. Core Scientific is in discussions with other potential clients about the remaining 300 MW or so of capacity. “Our new HPC contracts transform and expand our hosting business and earnings power with…
Filed under: News - @ June 6, 2024 4:12 pm