Core Scientific & CoreWeave: The Billion-Dollar Merger, Who Really Wins?

Anthony Power and McNallie dive deep into the Core Scientific and CoreWeave transaction, examining both sides of the equation ahead of the upcoming shareholder vote. They uncover surprising details from the newly released S4 filing that raises questions about who truly benefits from this multi-billion dollar deal.

• CoreWeave has been working with Core Scientific since 2019, evolving from a client relationship to acquisition target
• The deal began with a $1 billion offer ($5.75/share) in June, rejected before progressing to the current exchange ratio valued initially at $20.40/share
• CoreWeave's presentation reveals an additional gigawatt of power capacity not previously disclosed in Core Scientific materials
• With no price collar protection, Core Scientific shareholders face risk as the implied deal value has dropped from $20.40 to $12.79 per share
• Core Scientific executives stand to receive massive compensation packages - CEO Adam Sullivan alone would receive $131.9 million
• Ken Griffin of Citadel purchased 5.4% of Hive Digital Technologies, signaling increased institutional interest in Bitcoin mining companies
• Mining difficulty continues to rise, approaching 5% for next adjustment as global hashrate reaches 974 exahash (7-day average)

Hit the like button and subscribe to McNallie Money for more mining analysis. Let us know in the comments if you're holding shares of either company and whether you support this deal.

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