Core Scientific (NASDAQ:CORZ) stock is climbing today on news that the Bitcoin (BTC-USD) mining company may be acquired by CoreWeave in a $1 billion offer. Indeed, CORZ stock is up more than 40% at the time of this writing as investors weigh the all-cash offer.
What do you need to know about Core Scientific today?
Well, the proposed buyout is actually something of a follow-up to a new deal between the two companies. In fact, Core Scientific announced Monday that it signed several 12-year contracts with CoreWeave, projected to bring in over $3.5 billion in revenue over the length of the period.
Per the deal, Core Scientific will deliver about “200 megawatts of infrastructure” as a means of supporting CoreWeave’s computing operations, modifying several of its sites to accommodate the agreement. It’s expected that the new centers will become operational in the first half of 2025.
“Our expanding relationship with CoreWeave creates a pathway for Core Scientific to diversify our business model and balance our portfolio between bitcoin mining and alternative compute hosting, positioning us to maximize cash flow and minimize risk while maintaining our significant exposure to bitcoin’s upside potential,” said Core Scientific CEO Adam Sullivan.
CoreWeave’s proposed acquisition of Core Scientific would value the company at $5.75 per share, slightly below its current trading value of roughly $7 per share.
CORZ Stock Jumps as AI Wave Continues to Heat Up
After today’s surge, CORZ stock is up a staggering 100% year-to-date (YTD) as one of the big winners of this year’s AI frenzy.
Indeed, AI has been the talk of Wall Street all year as companies like Nvidia (NASDAQ:NVDA) lead the charge with astounding quarterly revenue and earnings growth, boosting the entire market in the process. NVDA stock is up 140% since the start of 2024. Indeed, NVDA enjoyed recent gains as a result of outstanding quarterly financial results, including a nearly $2 billion revenue beat.
Heading further into the year, expect investors to keep a close eye on CORZ stock as it navigates new opportunities in an increasingly high-growth field.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
