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Core Scientific, Inc. (NASDAQ: CORZ) has announced a $9 billion all-stock acquisition by CoreWeave, Inc. (NASDAQ: CRWV), valuing Core Scientific at $20.40 per share, significantly above its pre-deal price of under $11. The deal aligns Core Scientific’s energy-intensive infrastructure with CoreWeave’s AI-focused workloads, potentially shifting Core Scientific’s business model from Bitcoin mining to high-performance computing (HPC) hosting, offering more stable revenue streams. CoreWeave projects $500 million in annual cost savings by 2027 through operational synergies and lease eliminations, which could raise the combined entity’s adjusted operating margin to 28.4% from CoreWeave’s standalone 26.0%. However, analysts have flagged execution risks, and investor skepticism over valuation and strategic alignment led to a 16.8% drop in Core Scientific’s stock post-announcement, despite a 26% rise over the past month. Core Scientific’s stock has gained 150.29% over the last 52 weeks, with historical resilience even after missing earnings estimates. However, HC Wainwright & Co. downgraded the stock from Buy to Neutral, citing challenges in integrating Core Scientific’s operations into CoreWeave’s AI-focused infrastructure and the volatility of transitioning from Bitcoin mining to HPC hosting. While the acquisition offers long-term potential, short-term investor sentiment remains cautious, reflecting both optimism about strategic realignment and concerns over execution risks.
Source content provided by Benzinga.
This content was created in whole or in part using Generative Artificial Intelligence (AI). Please read the disclosures found at the end of this content for more information.

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Despite a 3% drop in Bitcoin's (CRYPTO: BTC) network hashrate in June, daily miner revenues soared to approximately $55,300 per exahash per second (EH/s), one of the highest profitability levels this year, according to a commentary shared with Benzinga by the analytics tea

Why CoreWeave's $9 Billion Deal Isn't About Chips

CoreWeave, Inc. (NASDAQ: CRWV) to acquire Core Scientific, Inc. (NASDAQ: CORZ) in $9B all-stock deal to enhance data center footprint and increase profitability. Analyst maintains Neutral rating.

About CORZ

Core Scientific Inc is engaged in designing, building and operating digital infrastructure for high-performance computing. The business operates in three operating segments; Digital Asset Self-Mining, consisting of performing digital asset mining ... Read more

Ways to trade options* on CORZ

Bullish Option Strategy: Long Calls

Traders buy a single call option on a stock or ETF. This strategy can benefit from a price increase while risking more capital than a spread.

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