PepeCoin (pepecoin) 
Core Scientific Rejects $1 Billion Takeover Bid
Core Scientific Inc., a prominent entity in the Bitcoin mining industry, has turned down an unsolicited $1 billion acquisition proposal from AI startup CoreWeave Inc. This move reflects the increasing interest and competition within the cryptocurrency sector.
Core Scientific, known for its extensive digital infrastructure for Bitcoin mining and hosting services in North America, received a non-binding proposal from CoreWeave. The offer aimed to acquire all outstanding shares at $5.75 per share in cash.
Despite the potential benefits, Core Scientific’s board of directors rejected the proposal, deeming it undervalued. The board highlighted Core Scientific’s growth potential and ability to meet the rising demand for data center space and high-performance computing facilities.
This decision follows Core Scientific’s recent emergence from bankruptcy protection in January. The company’s shares saw a significant increase, jumping as much as 16% to $8.30 on June 6, and have surged around 70% since the initial takeover offer.
Core Scientific’s $3.5 Billion Deal with CoreWeave
In other developments, Core Scientific has entered into a substantial 12-year agreement with CoreWeave. This deal involves providing 200 megawatts (MW) of infrastructure to support CoreWeave’s high-performance computing operations.
This partnership aligns with Core Scientific’s strategy to diversify its business model and leverage the growing demand for data center space. The deal, valued at $3.5 billion, is expected to generate cumulative revenue exceeding $3.5 billion over the contract period, with an estimated average annual revenue of approximately $290 million.
Approximately 18% of Core Scientific’s total operating infrastructure will be dedicated to supporting CoreWeave’s operations. This arrangement helps Core Scientific balance its portfolio between Bitcoin mining and alternative computer hosting, optimizing cash flow and reducing risks while maintaining significant exposure to Bitcoin’s growth potential.
More Firms Entering the Crypto Space
Bakkt, a digital asset platform launched by Intercontinental Exchange (ICE), is exploring potential strategic options, including a possible sale or breakup. This move comes as fintech brokerage firm Robinhood recently announced its acquisition of the European crypto exchange Bitstamp for $200 million.
Bakkt, having gone public in 2021 through a merger with a blank-check vehicle, has been evaluating its strategic alternatives with the assistance of a financial advisor. Despite posting a first-quarter loss of $21 million on $855 million in revenue, Bakkt’s shares rose 15% to $22.33 on June 7, with a market value around $300 million.
The potential sale or breakup of Bakkt underscores the ongoing consolidation within the crypto industry. Larger firms are looking to strengthen their presence in the digital asset space. With Bakkt holding a BitLicense and partnerships with companies like Starbucks and Microsoft, it could be an attractive acquisition target for companies aiming to enter or expand in the crypto market.
The crypto industry is witnessing significant developments, and more established firms are expected to make inroads. Stay updated with the latest news on Global Crypto News for more insights into the evolving cryptocurrency landscape.
