Bitcoin miner Core Scientific rejects buyout offer of more than $1bn

Bitcoin miner Core Scientific rejects buyout offer of more than $1bn
Bitcoin Miner Core Scientific evaluated its growth prospects before rejecting buyout. Credit: Shutterstock / rzoze19
  • Core Scientific determined offer undervalued it.
  • Company emerged from bankruptcy earlier this year.

Bitcoin miner Core Scientific rejected an all-cash buyout offer of more than $1 billion from cloud computing company CoreWeave, saying in a news release that the offer significantly undervalued it.

Core Scientific, one of the biggest owners and operators of high-powered digital infrastructure for Bitcoin mining and hosting services in North America, said it had received an unsolicited non-binding proposal from CoreWeave to acquire all of its outstanding shares on a fully diluted basis for $5.75 per share in cash.

This unsolicited proposal immediately followed Core Scientific and CoreWeave entering into a separate series of 12-year contracts for Core Scientific to provide about 200 MW of infrastructure to host CoreWeave’s high-performance computing services.

Core Scientific’s board consulted with independent advisers in reviewing CoreWeave’s proposal and evaluating the company’s growth prospects and near- and long-term value creation potential.

Shareholder interests

It determined that the proposal significantly undervalued Core Scientific and was not in the best interests of its shareholders.

Core Scientific emerged from Chapter 11 bankruptcy earlier this year.