Core Scientific Inc., a key player in the Bitcoin mining industry, recently turned down a $1 billion takeover offer from AI startup CoreWeave Inc. This rejection came as more companies are trying to get involved in the crypto world.
Core Scientific, known for its digital infrastructure for Bitcoin mining and hosting services in North America, received an offer of $5.75 per share from CoreWeave. However, the board of directors decided to reject the proposal as they believed it undervalued the company. The board highlighted Core Scientific’s growth potential and its ability to meet the increasing demand for data center space and high-performance computing facilities.
Following its emergence from bankruptcy protection earlier this year, Core Scientific’s shares saw a significant increase, jumping up to 16% to $8.30 and rising by 70% since the initial takeover offer.
In other news, Core Scientific signed a 12-year agreement with CoreWeave to provide 200 MW of infrastructure for the latter’s high-performance computing operations. This deal, valued at $3.5 billion, is expected to generate over $3.5 billion in revenue during the contract period. It will help Core Scientific diversify its business model and capitalize on the growing demand for data center space and high-performance computing facilities.
On a broader scale, companies like Bakkt and Robinhood are also making moves in the crypto industry. Bakkt, a digital asset platform, is exploring a potential sale, while Robinhood recently acquired the European crypto exchange Bitstamp for $200 million. This trend of larger firms acquiring crypto-related companies shows the industry’s consolidation.
As the crypto industry continues to evolve, established firms are increasingly looking to enter or expand in this space. With the anticipation of a “crypto summer,” we can expect more companies to make inroads into the digital asset market.