Bitcoin
Bitcoin Miner Core Scientific Surges After AI Deal, CoreWeave Over $1 Billion Tender Offer Report
Shares of Bitcoin miner Core Scientific (CORZ) rose as much as 40% in pre-market trading after cloud computing company CoreWeave signed a 200 megawatt (MW) artificial intelligence (AI) deal and was also reported to have offered to buy the mining company in an all-cash offer.
CoreWeave said it made the offer on Monday, implying a 55% premium over the miners’ three-month weighted average share price on May 31, Bloomberg reported citing a person familiar with the matter.
The offer would value the Austin, Texas-based mining company at just over $1 billion, based on $178 million. outstanding shares. Scientific Center came out of bankruptcy earlier this year after becoming one of the victims of a brutal crypto winter.
CoreWeave and Core Scientific did not immediately respond to comments on the story.
The cloud computing company also signed a 12-year agreement with the mining company to host AI-related services. CoreWeave said it will provide about $300 million in capital investment, with options to further expand capacity, according to a Press release.
The deal comes after mergers and acquisitions are heating up in the mining sector. More recently, another major bitcoin miner, Riot Platforms (RIOT), made a hostile offer to buy Bitfarms (BITF).
CoreWeave raised $1.1 billion in new financing in May with investors including Coatue Management and Magnetar Capital.