Core Scientific Surges On Report Of Renewed CoreWeave Acquisition Talks – Stock Hits 6-Month High

Core Scientific’s stock rose more than 30% in midday trade to its highest level since January after The Wall Street Journal reported CoreWeave may be mounting a fresh takeover offer.

CoreWeave (CRWV) is reportedly making another attempt to acquire Bitcoin miner Core Scientific (CORZ), with a final deal potentially materializing in the coming weeks.

According to a report by The Wall Street Journal, the exact terms of the offer have not been disclosed, but sources said the agreement could be finalized soon, provided the talks don’t encounter unexpected setbacks.

Core Scientific’s stock surged by more than 30% in midday trade to hit $16.18, its highest level since January, following the news. Retail sentiment on Stocktwits surged to ‘bullish’ territory from ‘bearish’ a day ago. Meanwhile, CoreWeave’s stock edged 0.5% lower with retail sentiment in ‘bearish’ territory.

Like most Bitcoin miners, Core Scientific has been trying to pivot its business towards becoming a premier provider of AI infrastructure, given its existing infrastructure and expertise in high-density computing.

Given the synergies between the two companies, they have been working together for years. Last year, CoreWeave even made a bid to acquire Core Scientific at $5.75 per share, valuing the company at just over $1 billion. 

However, Core Scientific rejected the offer, arguing that the valuation was too low. Instead, it chose to prioritize its existing partnership with CoreWeave – a contract under which Core Scientific supplies 320 megawatts of high-performance computing capacity to support CoreWeave’s use of Nvidia (NVDA) GPUs for 12 years.

Coreweave went public in March, and its stock has surged over 300% since then. Despite its massive rise, analysts are skeptical of its high valuation. Bank of America (BofA) recently downgraded CoreWeave from ‘Buy’ to ‘Neutral’ due to concerns that much of the near-term upside has already been priced in, as per TheFly.

Thursday’s surge put Core Scientific’s stock in the green for the year, with gains of 5%. Needham recently increased the price target on the shares to $18 from $16, while maintaining a ‘Buy’ rating. It said that there’s a strong demand backdrop with the surge in AI hyperscalers, which could easily overtake supply over the next five years.

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