CoreWeave (CRWV) To Acquire CORZ – Saga Wraps Up With Both Stocks Down

Core Scientific stock price (NASDAQ: CORZ) is reeling in pre-market trading, plummeting 16% following the announcement of its acquisition by cloud computing firm CoreWeave in an all-stock transaction. The deal, a culmination of months of strategic maneuvering and fluctuating market sentiment, marks a significant consolidation in the high-performance computing and cryptocurrency mining sectors.

The acquisition news follows a period of impressive growth for Core Scientific, with the stock demonstrating robust performance in recent weeks. Prior to the pre-market dip, CORZ had gained 41% in the last month of trading, closing at $18.00.

However, the market’s initial reaction to the acquisition suggests underlying concerns about the deal's structure and the combined entity's future prospects. The all-stock nature of the transaction could be weighing on investors, who may be reassessing the valuation and potential dilution of their holdings.

Under the terms of the merger agreement, Core Scientific stockholders will receive 0.1235 newly issued shares of CoreWeave common stock for each share of CORZ based on a fixed exchange ratio.

This acquisition saga began in June 2024 when CoreWeave made an unsolicited $1.02 billion offer to acquire Core Scientific, valuing shares at $5.75 each. Core Scientific's board swiftly rejected the proposal, deeming it an undervaluation of the company. Despite the rejection, the two companies forged a series of 12-year contracts, with Core Scientific providing approximately 200 megawatts (MW) of infrastructure to host CoreWeave's high-performance computing services. These contracts were projected to generate over $3.5 billion in cumulative revenue for Core Scientific, a testament to the strategic importance of the partnership.

The collaboration deepened in February 2025, with the announcement of a $1.2 billion expansion at Core Scientific's Denton, Texas site. This expansion increased CoreWeave's total contracted high-performance computing (HPC) infrastructure with Core Scientific to approximately 590 MW across six sites, with projected revenue exceeding $10 billion over the 12-year contract terms. This move solidified the symbiotic relationship between the two companies, positioning Core Scientific as a key infrastructure provider for CoreWeave's rapidly growing AI-focused cloud business.

Yet, challenges emerged in March 2025, when Core Scientific's stock experienced an 18% decline following reports that Microsoft had reduced its commitments to CoreWeave, citing missed deadlines and delivery issues. Given CoreWeave's significant reliance on Microsoft, which accounted for 62% of its revenue in 2024, the news cast a shadow of doubt on CoreWeave's financial stability and, by extension, its partners like Core Scientific. This event highlights the inherent risks associated with concentrated customer bases and the potential for ripple effects throughout the supply chain.

Despite these headwinds, reports surfaced in June 2025 that CoreWeave was in renewed talks to acquire Core Scientific. This news triggered an approximate 8% increase in Core Scientific's share price, bringing its market value close to $4 billion. The current all-stock acquisition reflects the culmination of these discussions.