Core Scientific Inc., a significant player in the #Bitcoin (BTC) mining industry, has rejected an unsolicited $1 billion takeover offer from artificial intelligence (AI) startup CoreWeave Inc. as more and more companies scamper to latch onto the crypto bandwagon.
Core Scientific rejects takeover bid
Core Scientific, one of North America’s largest owners and operators of high-powered digital infrastructure for Bitcoin mining and hosting services, received an unsolicited non-binding proposal from CoreWeave to acquire all of its outstanding shares on a fully diluted basis for $5.75 per share in cash. The proposal, valuing Core Scientific at $5.75 per share, was made on March 28, 2023, and was rejected by the company’s board of directors.
This proposal came shortly after Core Scientific and CoreWeave signed a series of 12-year contracts for Core Scientific to provide approximately 200 MW of infrastructure to host CoreWeave’s high-performance computing services.
Despite the potential benefits of the partnership, Core Scientific’s board determined that the offer significantly undervalued the company and was not in the best interests of the company and its shareholders. The board cited Core Scientific’s significant growth potential and its ability to capitalize on the growing demand for data data center space and high-performance computing facilities.
This decision follows Core Scientific’s emergence from bankruptcy protection in January. Following the announcement, the company’s shares jumped as much as 16% to $8.30 in June 6, and have surged around 70% since the initial takeover offer.