CoreWeave Stock Falls After $9B Core Scientific Deal Shocks Market

CoreWeave CRWV shares slid about 3% on Tuesday morning as investors digest its all?stock bid for Core Scientific CORZ.

Under the deal, Core Scientific shareholders will receive 0.1235 CoreWeave shares for each CORZ share, representing roughly a 66% premium over the pre?announcement closing price.

Once the transaction closes, expected by year?end pending regulatory and shareholder approval, Core Scientific holders will own under 10% of the combined group.

CoreWeave values the takeover at about $9 billion and says it will wipe out roughly $10 billion in future lease commitments, boosting its operating leverage.

The merger grants CoreWeave control of 1.3 gigawatts of existing data?center capacity, with an extra gigawatt earmarked for expansion. It may divest the acquired cryptocurrency?mining arm, which generated 89% of CORZ's first?quarter revenue, to sharpen its focus on AI workloads.

Founded in 2018, Core Scientific employs over 300 staff and has partnered with CoreWeave on several projects. CoreWeave itself debuted publicly in March, with shares climbing more than 330% since its IPO.

Investors will watch closely whether the combined company can translate these assets into sustained growth.