Bitcoin
Bitcoin mining company Core Scientific rejects CoreWeave takeover offer
(Reuters) – Bitcoin miner Core Scientific on Thursday rejected an all-cash offer from Nvidia-backed specialist cloud provider CoreWeave, saying the offer undervalues the company.
“The board determined that the CoreWeave proposal significantly undervalues the company and does not serve the best interests of the company and its shareholders,” Core Scientific said in a statement.
Core Scientific received an unsolicited, non-binding proposal from CoreWeave on June 3 to acquire all of the company’s outstanding shares on a fully diluted basis for $1.02 billion or $5.75 per share in cash.
Separately, the two companies also signed a series of 12-year contracts on the same day.
The contracts include an agreement under which Core Scientific will provide CoreWeave with approximately 200 MW of infrastructure to power its high-performance computing services.
Cryptocurrency miners use large amounts of electricity to run their operations and are increasingly being targeted by larger competitors and AI technology companies as they try to consolidate power supplies for their energy-hungry companies.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru: Editing by Tasim Zahid)