Core Scientific and Bitcoin Miners Fall After CoreWeave Purchase; Jefferies Says Price Is in Expected Range
CoreWeave (CRWV), a company developing infrastructure for artificial intelligence, has decided to buy Bitcoin.
BTC miner Core Scientific (CORZ) has completed a $108,156.11 deal to acquire CORZ shares, valuing them at approximately $20.40 per share based on recent closing prices.
The proposed price is within a range previously set by investment bank Jefferies: from $16 to $23 per share. The deal is expected to close in the fourth quarter of 2025.
Core Scientific shares are down 22% to around $14 at press time, while other Bitcoin miners and high-performance computing prospects like HUT 8 (HUT) and Cleanspark (CLSK) are down more than 7%. However, another miner in a similar situation, IREN (IREN), is up 3%.
CoreWeave shares fell 3.3%.
Jefferies analysts have previously noted that the strong rally in CoreWeave shares since the IPO creates favorable conditions for large mergers and acquisitions. The bank views the move as a strategic measure to vertically integrate CoreWeave's infrastructure and reduce its dependence on long-term leases and external developers.
Analysts Jonathan Petersen and Yan Aygul point out that CoreWeave has the ability to use its relatively low cost of equity to replace long-term lease obligations and take direct control of data center assets.
The deal highlights a growing trend of consolidation in the AI and high-performance computing (HPC) infrastructure space as vertically integrated providers seek expansion and control.
For CoreWeave, the move positions the company not just as a provider of compute resources, but as a full-service infrastructure operator, which is becoming increasingly important as demand from AI and cloud companies grows.
The acquisition of Core Scientific's data center capacity and platform will allow CoreWeave to expand its infrastructure and better control future capacity expansion, analysts said.
Core Scientific is also seeking new leases with hyperscalers, and analysts have suggested that CoreWeave may be looking to secure that space before making new deals.
Jefferies has assigned a “buy” rating to Core Scientific shares with an $18 price target.
Read more: CoreWeave acquires Core Scientific for $9 billion in all-stock financing
Source: cryptonews.net
