- Core Scientific receives an all-stock purchase from CoreWeave, valued at around $9B.
- CoreWeave reduces lease costs and aims at operational synergies.
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CoreWeave Inc CRWV has announced an all-stock purchase of Core Scientific Inc CORZ in a deal valued at about $20.40 per share, or roughly $9 billion, according to HC Wainwright.
The Core Scientific Analyst: Analyst Kevin Dede downgraded the rating on Core Scientific from Buy to Neutral.
The Core Scientific Thesis: The acquisition transforms CoreWeave "from a tenant model to direct ownership of about 1.3GW of HPC-grade capacity, with another 1GW-plus of identified expansion," Dede said in the downgrade note.
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The acquisition eliminates over $10 billion in long-term lease obligations, he added.
CoreWeave’s management is targeting over $500 million in annual cost savings by the end of 2027, due to the elimination of Core Scientific's lease and the building of operating synergies, the analyst stated.
The transaction is expected to close in the fourth quarter of 2025, pending approvals, he said.
"Core Scientific’s forecasts are now dominated by the revenue contribution hard-contracted HPC hosting generates that is both concrete in trajectory and transparent, transforming the company’s P/L especially as compared to the vagaries attached to bitcoin mining," Dede further wrote.
CORZ Price Action: Shares of Core Scientific had declined by 1.28% to $14.64 at the time of publication on Tuesday.
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