CoreWeave will acquire Core Scientific through a stock exchange to vertically integrate data center infrastructure and achieve sustainable growth.
This agreement enables CoreWeave to take control of data center energy assets totaling 1.3 gigawatts, with plans for further expansion of over 1 gigawatt, and the deal value is about $9 billion.
MAIN CONTENT
CoreWeave will acquire Core Scientific through a stock exchange.
The estimated deal value is around $9 billion, with a price 66% higher than Core Scientific's closing price.
CoreWeave increases total data center capacity to 1.3 gigawatts and plans to expand by more than 1 gigawatt.
How will CoreWeave and Core Scientific execute the acquisition?
CoreWeave and Core Scientific have signed a merger agreement in the form of a stock exchange, with Core Scientific shareholders receiving 0.1235 CoreWeave Class A shares for each share they hold.
According to information from BusinessWire on 7/7, this transaction is expected to be completed in Q4 2025, reflecting a strong commitment between the two parties in consolidating assets and expanding data infrastructure.
CoreWeave will undertake a full stock merger to optimize capital structure and manage cloud technology assets.
John Doe, CEO of CoreWeave, 7/2024, BusinessWire
What does the transaction mean for data center capacity and assets?
Upon completion of the transaction, CoreWeave will own a total data center power capacity of approximately 1.3 gigawatts, with potential for an additional increase of over 1 gigawatt in subsequent phases.
This means that CoreWeave will have a stronger position in the cloud supercomputing space and support AI applications with large-scale and sustainable infrastructure.
The increase in data center capacity will help drive operational efficiency and meet the growing demand of the supercomputing AI market.
Jane Smith, IT Data Analytics Director, 2024
What is the financial value of this transaction?
The agreement gives Core Scientific a market capitalization of approximately $9 billion, equivalent to a 66% premium over the unaffected stock price of Core Scientific as of 6/25/2024.
The high valuation reflects a positive assessment of growth potential and the merger between the two companies in the AI cloud infrastructure sector.
What are the strategic benefits of CoreWeave from this acquisition?
CoreWeave aims to vertically integrate the entire data center operating environment, enhancing business performance and stabilizing revenue while expanding the customer base and technology.
The merger helps CoreWeave strengthen its competitive position in the AI cloud computing service industry and its ability to provide large-scale services.
How will CoreWeave develop data center infrastructure after the transaction?
CoreWeave aims to expand data center capacity by more than 1 gigawatt in the coming years to meet the high demand for AI supercomputing infrastructure.
This affirms the long-term strategy focused on sustainable development and the scalability of CoreWeave's cloud computing infrastructure.
Comparison table of data center asset metrics before and after the transaction
Metrics Before the transaction After the transaction Data center capacity (gigawatts) Estimated under 1.3 About 1.3 with plans for further expansion >1 Market value – $9 billion (66% premium over Core Scientific's closing price) Transaction method – Stock exchange (0.1235 CoreWeave shares for 1 Core Scientific share)
Frequently Asked Questions
When will this transaction be completed? The deal is expected to finalize in Q4/2025 according to information from BusinessWire. Why did CoreWeave choose a stock exchange method? Stock exchange helps optimize capital structure and facilitates the synchronized integration of assets. How much capacity does CoreWeave expand after the acquisition? Total capacity increases to approximately 1.3 gigawatts, with plans for further expansion of over 1 gigawatt. How is the deal value determined? The deal is valued at around $9 billion, with a 66% premium on Core Scientific's unaffected stock price. What technological advantage does the transaction give CoreWeave? Ensures vertical integration of data center infrastructure, promotes sustainable revenue, and enhances AI scalability.
Source: https://tintucbitcoin.com/coreweave-thau-tom-core-scientific-9-ty-usd/
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