Core Scientific, a key player in the data center and infrastructure industry, has recently announced a proposed merger with CoreWeave. The transaction terms indicate that Core Scientific stockholders are set to receive 0.1235 newly-issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock held. This represents a significant premium of approximately 71% compared to the 10-day VWAP exchange ratio as of June 25, 2025, prior to media reports regarding a transaction between the parties. Notably, Core Scientific was able to negotiate an approximately 34% increase in the exchange ratio from CoreWeave's initial offer.
It's important to highlight the historical timeline and share price performance. Since Core Scientific's emergence from bankruptcy, the company has significantly expanded its commercial relationship with CoreWeave, culminating in the announcement of an all-stock merger. The share price timeline shows a fluctuating pattern with various crucial events, such as the unsolicited bid from CoreWeave and the rejection of the bid by Core Scientific.
The proposed merger is expected to bring about significant pro forma combination benefits. CoreWeave currently represents the vast majority of Core Scientific's total consolidated revenue, and by 2026, CoreWeave-related revenue is projected to constitute approximately 95% of Core Scientific’s colocation revenue and around 76% of its total projected revenue.
The combination is set to create a leading AI infrastructure player, with potential cost savings and synergies that could create value for Core Scientific stockholders. The transaction is also anticipated to generate significant cost savings through streamlining business operations and eliminating lease overhead, leading to a projected $500 million-plus fully ramped, annual run rate cost savings by the end of 2027 for the combined company.
Furthermore, the merger is expected to de-risk Core Scientific’s standalone plan, which includes substantial capital expenditures and execution risks. The standalone plan projects over $7.3 billion of total capex over the next eight years, with the majority of it expected to be spent in the first four years. Without contracted revenue to support borrowing, securing debt financing for the standalone plan would likely be very expensive and potentially unfeasible.
As a result of these announcements, the company's shares have moved 3.73% on the market, and are now trading at a price of $19.21. For the full picture, make sure to review Core Scientific's 8-K report.
