CoreWeave, Core Scientific Shares Move Lower On $9 Billion All-Stock Deal

CoreWeave Inc CRWV and Core Scientific Inc CORZ shares are moving lower Monday after the companies announced a merger deal.

What Happened: CoreWeave and Core Scientific entered into a definitive agreement in which CoreWeave will acquire Core Scientific in an all-stock deal.

Under terms of the agreement, Core Scientific shareholders will receive 0.1235 newly issued shares of CoreWeave common stock for each Core Scientific share held.

The deal is expected to help CoreWeave verticalize its data center footprint to “future-proof revenue growth” and amplify profitability. Following the transaction, CoreWeave will own approximately 1.3 GW of power across Core Scientific’s footprint with another 1 GW plus of potential power available for expansion.

“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,” said Michael Intrator, co-founder, chairman and CEO of CoreWeave.

“Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI’s full potential.”

The deal implies a total equity value of $9 billion, which represents a value of $20.40 per share. The acquisition is expected to close in the fourth quarter.

Core Scientific shares had been up significantly in recent weeks following reports that the company was in talks with CoreWeave about a potential deal. Even with Monday’s pullback, Core Scientific shares are still up about 26% over the past month.

Price Action: At the time of publication, CoreWeave shares were down 3.50% at $159.10 and Core Scientific shares were down 16.8% at $14.99, according to Benzinga Pro.