CoreWeave's Second Bid for Core Scientific
CoreWeave is making a fresh attempt to acquire Bitcoin miner Core Scientific, as reported by the Wall Street Journal. The deal might be finalized within weeks. Previously, CoreWeave offered $1 billion to buy Core Scientific, but their bid undervalued the company and was rejected. The specifics of the new bid haven't been disclosed, though Core Scientific's shares rose significantly after the news. Core Scientific became a public company in 2022 through a substantial SPAC merger and even went through bankruptcy restructuring, reemerging on Nasdaq. In 2024, they reported significant revenue, though they also faced large net losses. Meanwhile, CoreWeave, after its IPO, generated considerable revenue and established partnerships with major technology companies. Both firms also signed contracts, including one for high-performance computing infrastructure.
FAQ
❓ What was CoreWeave's previous offer to acquire Core Scientific?
In June 2024, CoreWeave offered approximately $1 billion to purchase Core Scientific, which was declined for undervaluing the company.
❓ How did Core Scientific emerge after its bankruptcy filing?
Core Scientific filed for Chapter 11 bankruptcy in December 2022 but restructured and returned to Nasdaq listing the following year.
❓ What recent financial performance did Core Scientific report?
In the first quarter of 2024, Core Scientific reported a profit of $580 million, recovering from previous losses.