An all-cash offer from Nvidia-backed cloud service provider CoreWeave was rejected by bitcoin miner Core Scientific on Thursday, citing the offer’s undervaluation of the firm.
“The board determined that the CoreWeave proposal significantly undervalues the company and is not in the best interests of the company and its shareholders,” the statement read.
On June 3, CoreWeave made an unsolicited, non-binding offer to Core Scientific to purchase all of the company’s outstanding shares for $1.02 billion, or $5.75 per share, in cash.
On the same day, both companies had also separately signed several agreements of 12-year contracts.
A provision of the contracts is that Core Scientific will supply CoreWeave with approximately 200 MW of infrastructure to support its high-performance computing services.
In an effort to centralize power supplies for their energy-hungry businesses, larger peers and AI technology firms are increasingly focusing on cryptocurrency miners, who consume enormous amounts of electricity to conduct their operations.
