CoreWeave stock to acquire Core Scientific in $9 billion all-stock deal

Investing.com - CoreWeave (NASDAQ:CRWV), currently valued at $79.29 billion and trading at $161.19, announced Monday its formal intent to acquire Core Scientific in an all-stock transaction valued at approximately $9 billion, confirming earlier media reports that the two companies were in discussions. According to InvestingPro data, CoreWeave has demonstrated remarkable momentum with a 313% return year-to-date.

Under the terms of the agreement, Core Scientific shareholders will receive 0.1235 newly issued CoreWeave shares for each share they own, representing an implied value of approximately $20.40 per Core Scientific share. The newly issued shares will constitute less than 10% of CoreWeave’s total ownership following the transaction. InvestingPro analysis indicates that CoreWeave is currently trading above its calculated Fair Value, with multiple ProTips highlighting its high valuation multiples across various metrics.

The acquisition is expected to deliver significant cost savings for CoreWeave, eliminating approximately $10 billion in lease overhead owed to Core Scientific over the next 12 years. This direct ownership of data centers is projected to result in approximately $500 million in annual run rate cost savings by the end of 2027.

Barclays (LON:BARC) maintained an Equalweight rating and $100 price target on CoreWeave following the announcement, noting the deal represents a "natural next-step in CoreWeave’s evolution as a company" by vertically integrating data center operations and providing more flexibility over infrastructure development.

The transaction, which remains subject to regulatory approval and other conditions, is expected to close in the fourth quarter of 2025, with CoreWeave management highlighting that the deal will strengthen the company’s existing AI technology stack end-to-end while remaining leverage neutral due to the all-stock structure.

In other recent news, CoreWeave has reported several significant developments. The company announced the deployment of NVIDIA (NASDAQ:NVDA)’s GB300 NVL72 systems, marking a major advancement in AI infrastructure with improvements in user responsiveness and throughput. This deployment, accomplished in collaboration with Dell (NYSE:DELL), Switch, and Vertiv, highlights CoreWeave’s commitment to enhancing AI capabilities. Additionally, CoreWeave is in discussions to acquire Core Scientific, a high-performance compute and Bitcoin mining provider, with a potential deal on the horizon.

In the realm of cloud software, CoreWeave launched three new AI cloud software products aimed at improving AI development and deployment efficiency. These offerings leverage CoreWeave’s acquisition of Weights & Biases, integrating new capabilities such as Mission Control Integration and W&B Inference. Furthermore, BofA Securities recently downgraded CoreWeave from Buy to Neutral, despite raising its price target to $185, citing valuation concerns after a 145% rally in the company’s shares. The firm acknowledged positive developments, including a new hyperscaler customer and an expanded agreement with OpenAI, but noted that much of the near-term upside may already be reflected in the stock price.

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