Core Scientific upholds deal with CoreWeave amid rejecting $1 billion ‘unsolicited’ buyout

Core Scientific (CORZ) has rejected an “unsolicited” $1 billion buyout offer from CoreWeave, deeming it significantly undervalued and not in the best interests of its shareholders. The proposal, which offered $5.75 per share, came shortly after the two companies signed a series of 12-year contracts for Core Scientific to provide 200 megawatts of infrastructure to support CoreWeave’s high-performance computing (HPC) AI services.
Per Core Scientific, the board, in consultation with independent financial and legal advisors, concluded that the proposal did not reflect the company’s growth prospects and long-term value-creation potential. It also made a point to clarify the offer was “unsolicited” by using the term in the title of its press release.
Core Scientific intends to work on executing the previously announced contracts with CoreWeave, which are expected to generate over $3.5 billion in cumulative revenue. The agreements marked a strategic shift for Core Scientific, traditionally known for its bitcoin mining operations, as it diversifies into the AI data center space.
CORZ shares were trading at around $4.84 before the partnership announcement and subsequently rose to around $7.15. The CoreWeave offer at $5.75 per share is well above Core Scientific’s share price before the partnership announcement but lower than current prices, indicating the board believes its share price is not overinflated due to its new deal.
CoreWeave will fund all capital investments required for the infrastructure modifications, estimated at $300 million, which will be credited against hosting payments until fully repaid. This partnership is anticipated to generate an average annual revenue of approximately $290 million, enhancing Core Scientific’s earnings power and driving shareholder value.
The company’s decision to reject the buyout offer emphasizes its confidence in its Bitcoin mining and the strategic benefits of the CoreWeave partnership alone. CEO Adam Sullivan highlighted that the demand for high-power sites continues to outpace supply, positioning Core Scientific to meet customer needs more effectively than greenfield data center projects. The partnership allows Core Scientific to balance its portfolio between Bitcoin mining and alternative compute hosting, maximizing cash flow and minimizing risk while maintaining significant exposure to Bitcoin’s potential upside.
Core Scientific’s shift towards AI infrastructure coincides with the recent Bitcoin halving event, which reduced miner rewards and pressured mining firms to find alternative revenue sources. The company’s financial recovery, following a 13-month bankruptcy restructuring process, has been bolstered by a substantial increase in Bitcoin prices and hash rates. Core Scientific’s shares, which resumed trading on the Nasdaq in January, have seen significant gains, reflecting investor confidence in the company’s strategic direction.
The partnership with CoreWeave builds on a history of successful collaboration between the two firms, dating back to 2019. Earlier this year, Core Scientific delivered 16 MW of HPC hosting capacity to CoreWeave ahead of schedule at its new Austin data center. The ongoing collaboration illustrates the strategic importance of AI and cloud computing in Core Scientific’s future plans.
Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.

Your daily dose of must-have crypto news and deep dives. Direct to your inbox.
Kendrick also reaffirmed previous projections and said he maintains a bullish outlook on Bitcoin’s price.
The distribution of asset withdrawals across centralized exchanges reflect shifting priorities of crypto traders.
Horne said that even if Bitcoin price falls dramatically, a small exposure would not impact the broader portfolio.
Gensler made the statements during a June 5 interview on CNBC in response to Jim Cramer’s questions about potential exchange-traded products for cryptocurrencies beyond Bitcoin and Ethereum.
CryptoSlate’s latest market report dives deep into the meteoric rise of BlackRock’s Bitcoin ETF to understand how it positioned itself at the forefront of the crypto market.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.