CoreWeave is a leading AI infrastructure provider (NASDAQ:CRWV). announced Core Scientific, one of the world’s largest Bitcoin-mining and datacenter firms (NASDAQ:CORZ), will now be purchased by Core Scientific in a $9 billion all-stock transaction.
“Under the terms of the merger agreement, Core Scientific stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio,” The announcement was made.
CoreWeave has acquired 1.3 gigawatts, a large portion of which is currently being used to mine Bitcoin. But the company announced that it would redirect these resources to AI and High-Performance Computing (HPC), a significant step away. Bitcoin operations.
“This acquisition accelerates our strategy to deploy AI and HPC workloads at scale,” Michael Intrator, CEO, chairman of the board, and cofounder of CoreWeave, said. “Verticalizing the ownership of Core Scientific’s high-performance data center infrastructure enables CoreWeave to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory. Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI’s full potential.”
CoreWeave will save over $10 billion on lease costs. By 2027, CoreWeave is projected to achieve annual savings of $500 million. Core Scientific will have less than 10 percent of the combined business after closing.
Core Scientific is a leading player in the field of Bitcoin miningAfter emerging from bankruptcy, and relisting its stock on Nasdaq by 2024, began to shift their focus toward AI. The acquisition of this company confirms the direction in which we are heading, indicating a future that is more focused on AI infrastructure rather than Bitcoin.
“As our longstanding partner, CoreWeave has experienced firsthand the operational excellence we deliver and the value of the services we provide,” Adam Sullivan is the CEO and President of Core Scientific. “Together with CoreWeave, we will be well-positioned to accelerate the availability of world-class infrastructure for companies innovating with AI while delivering the greatest value for our shareholders, who will be able to participate in the tremendous upside potential of the combined company.”
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Source: bitcoinmagazine.com
