Core Scientific rejects Coreweaves unsolicited acquisition offer

Core Scientific, a prominent mining company listed on the global stock market, recently turned down an unexpected and unsolicited acquisition offer from Coreweave, a provider of AI computing and cloud services, on June 3.
In an official statement, Core Scientific revealed that despite being offered $5.75 per share, their board of directors decided to reject the proposal, citing a undervaluation of the mining company:
The company determined that the proposed deal “does not align with the best interests of the Company and its shareholders.”
This offer came after a series of long-term business agreements between the two entities, with the most recent allowing Coreweave to lease a significant portion of Core Scientific’s infrastructure for a duration of 12 years, amounting to 18%.
In a strategic move to diversify its revenue streams, Core Scientific entered into a leasing agreement with Coreweave in March 2023, leasing out one of its top-tier data centers to the AI and cloud computing firm.
Situated in Austin, Texas, this data center provides Coreweave with 16 megawatts of capacity to support its advanced AI computing services.
Back in December 2022, Core Scientific filed for Chapter 11 Bankruptcy amid the challenging cryptocurrency market conditions. Similar to many other mining companies, Core Scientific faced difficulties due to high energy costs, declining Bitcoin prices, and industry-wide bankruptcies stemming from excessive debts and unfavorable market conditions at the time.
Following a 13-month restructuring process, Core Scientific successfully relisted on stock exchanges in January 2024. However, the company’s stock value plummeted by 30% shortly after the relisting.
Since January, Core Scientific’s stock price has consistently traded below the peak of $6.10 per share recorded during the relisting period. However, towards the end of May and the beginning of June, the company’s fortunes took a positive turn after reporting improved financial results for the first quarter of 2024, boasting total revenues of $179.3 million.
As a result, Core Scientific’s stock price saw a significant surge, reaching a new high since the relisting and currently trading around $8.02 per share.


A price history for Core Scientific since the January 2024 relisting. Source: TradingView.
In conclusion, despite facing challenges and setbacks, Core Scientific has managed to navigate the volatile cryptocurrency landscape and emerge with a stronger financial position, demonstrating resilience and adaptability in the face of adversity.