✅✅(Bloomberg) -- Bitcoin miner Core Scientific Inc. has rejected an unsolicited $1 billion takeover offer from artificial intelligence startup CoreWeave Inc., just days after the companies announced a partnership that they projected would generate about $3.5 billion in revenue. 📶📶
The Austin, Texas-based company is one of the largest digital-asset miners by computing power with data center capacity that can be converted to high-performance computing facilities to power generative AI applications. CoreWeave, which has raised billions of dollars and is mulling an initial public offering, proposed to acquire the miner with $5.75 per share in cash, late Monday.🥰
The artificial-intelligence boom has created an unprecedented shortage of both data-center space and the graphics-processing unit chips used in AI, as well as quick access to enough electricity to power it all. New facilities being built are quickly filling up: ✈️✈️About 83% of data-center capacity under construction has already been leased in advance, with AI companies and cloud-service providers driving the demand, according to a March report by commercial real-estate firm CBRE Group.😍
“The Board determined that the CoreWeave proposal significantly undervalues the company and is not in the best interests of the company and its shareholders,” Core Scientific said in a statement on Thursday.
The mining company touted it has identified about 500-megawatt capacity for HPC operations,🤗🤗 making Core Scientific one of the largest digital infrastructure providers even among traditional data centers.
The acquisition proposal came on the heels of a series of 12-year contracts between the two companies, in which the miner will deliver 200-megawatt capacity to power the graphics processing units owned by CoreWeave. Shares of Core Scientific soared 40% on Tuesday on the announcement.💯💯
Core Scientific was little changed at around $7.17 in pre-market trading. The stock has more than doubled this year.
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