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71 sats \ 2 replies \ @Bell_curve OP 8 Jul \ parent \ on: CoreWeave to acquire Core Scientific in $9 billion all-stock deal Stacker_Stocks
After the deal closes, CoreWeave said it will be able to choose to divest Core Scientific's cryptocurrency mining business, which was responsible for 89% of Core Scientific's first-quarter revenue, or make it ready to handle AI workloads.
"We have gone through the conversion process," Intrator said. CoreWeave is in the middle of an upgrade with Galaxy Digital, he said. The cost associated with converting cryptocurrency sites is less than it is for setting up new AI data centers, Intrator said.
Plus, CoreWeave will be able to pursue investments from infrastructure-oriented vehicles and other sources that could result in a lower cost of capital, Agrawal said on the investor call. As of March 31, CoreWeave's weighted average rate on its short-term debt was 10.1%.
Shareholders of Core Scientific will receive 0.1235 CoreWeave shares for each share they hold. That implies a $20.40 per-share valuation and a 66% premium to Core Scientific's closing stock price before deal talks were reported.
After the deal closes, Core Scientific shareholders will own less than 10% of the combined company.
The two companies could have come together earlier. Last year Core Scientific said it had rejected CoreWeave's unsolicited offer to buy all outstanding shares.
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