CoreWeave Acquires Core Scientific To Expand Hyperscale Data Center Infrastructure And Enhance Operational Efficiency
In Brief
CoreWeave has agreed to acquire Core Scientific in an all-stock deal valued at around $9 billion, aiming to expand its data center infrastructure, improve operational efficiency, and enhance financing flexibility, with the transaction expected to close in late 2025.
Company specializing in AI-focused hyperscale infrastructure, CoreWeave, announced that it has entered into a definitive agreement to acquire Core Scientific through an all-stock transaction.
Core Scientific operates purpose-built digital infrastructure facilities and provides high-density colocation services along with software and infrastructure solutions for third-party clients.
According to the terms outlined in the agreement, Core Scientific shareholders are set to receive 0.1235 newly issued shares of CoreWeave Class A common stock for each Core Scientific share, based on a fixed exchange ratio. The acquisition is positioned as a strategic move to support CoreWeave’s post-IPO expansion, following its public listing in March 2025.
The deal is expected to allow CoreWeave to integrate vertically by incorporating Core Scientific’s data center infrastructure. As a result, CoreWeave would gain control of approximately 1.3 gigawatts of gross power capacity across Core Scientific’s national data center network, along with more than 1 gigawatt of additional potential capacity for future growth.
Strategic Implications And Benefits Of CoreWeave’s Acquisition Of Core Scientific
The acquisition of Core Scientific by CoreWeave is anticipated to deliver several strategic advantages. These include improvements in operational efficiency, as the consolidation of business functions and the removal of lease-related expenses are expected to result in substantial cost reductions. The deal also introduces greater flexibility in financing, enabling CoreWeave to leverage infrastructure-specific capital strategies to support planned capital expenditures, potentially lowering its overall cost of capital. Additionally, by integrating Core Scientific’s infrastructure, CoreWeave will obtain direct ownership of a critical power footprint, offering increased optionality for future power expansion. Core Scientific’s experience in developing data centers is expected to enhance CoreWeave’s capabilities in areas such as power procurement, site development, and infrastructure management.
The transaction is projected to close in the fourth quarter of 2025, pending standard regulatory approvals and the consent of Core Scientific shareholders. According to the agreed terms—already approved by the boards of directors of both firms—Core Scientific shareholders will receive 0.1235 newly issued CoreWeave Class A common shares for each Core Scientific share. Based on CoreWeave’s five-day volume-weighted average price as of July 3, 2025, the implied equity value of the transaction stands at approximately $9 billion on a fully diluted basis. Once completed, shareholders of Core Scientific are expected to hold less than 10% of the combined entity.
The merger would also eliminate over $10 billion in cumulative lease obligations for CoreWeave tied to existing contracted facilities over the next 12 years. From a capital structure standpoint, the acquisition is considered leverage-neutral, while also enhancing access to a broader range of financing sources at improved terms. Taking into account these lease reductions and other operational streamlining efforts, the combined company anticipates achieving $500 million in annualized cost savings by the end of 2027. Additionally, there is potential to shift parts of the business toward high-performance computing applications or explore divestment of the cryptocurrency mining segment over a medium-term timeframe.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
