AI company CoreWeave is set to acquire Bitcoin mining giant Core Scientific for approximately 1.3 trillion yen.

## Acquisition through a 1.3 trillion yen stock swap

CoreWeave, a cloud provider specialized in AI, announced on the 7th that it has signed a contract to acquire the cryptocurrency mining company Core Scientific for approximately $9 billion (about 1.3 trillion yen) in a full stock exchange.

Core Weave will have approximately 1.3 GW (gigawatts) of power generation capacity across the Core Scientific data center locations in the United States. Furthermore, it is possible to expand this by more than 1 GW.

Michael Intrator, CEO of CoreWeave, commented that this acquisition will accelerate their strategy to scale AI and HPC (high-performance computing) workloads.

By vertically integrating the ownership of Core Scientific's high-performance data center infrastructure, CoreWeave can significantly improve operational efficiency, mitigate risks associated with future expansions, and make its growth trajectory more secure.

By owning this foundational layer in-house, our performance and expertise will further improve, allowing us to continue supporting customers in maximizing the potential of AI.

The possibility of this acquisition was reported on June 26, and the stock price of Core Scientific (CORZ) had surged by 30%. On the other hand, following the confirmation of the acquisition, the company's stock price fell by 17% on the 7th.

Some analysts analyzed this cause by stating, "Perhaps the market was expecting a higher valuation, which is why they were disappointed with the all-stock acquisition."

Furthermore, since there are no price protection provisions and the acquisition completion date is set for the fourth quarter (October to December), it is reasonable to argue that this is a valid reaction, as concerns may arise regarding whether the acquisition will actually be fulfilled if the stock price of CoreWeave significantly fluctuates before then.

Core Scientific entered into a 12-year contract last June to lease infrastructure to CoreWeave for HPC operations.

CoreWeave aims to improve capital efficiency and development flexibility by eliminating this long-term lease obligation through the acquisition of Core Scientific and fully controlling the company's data center and power infrastructure.

Could lead to a reevaluation of Bitcoin mining companies.

Analysts at the U.S. investment firm Bernstein pointed out that the announcement of this acquisition could encourage a reevaluation by investors of Bitcoin (BTC) mining companies, citing the following conditions that apply.

(1) Large-scale power capacity, (2) Ongoing development of AI/HPC sites or successful proof of concept, (3) A strong balance sheet without legacy debt or constrained debt, these AI-focused miners are believed to have the potential for reevaluation in the future.

Especially after the Bitcoin halving, there has been an increasing number of cases in the mining industry adopting hybrid strategies that combine cryptocurrency mining with the operation of AI data centers.

For example, IREN and Riot Platforms are also advancing their business diversification into the fields of AI and high-performance computing.