Core View on CoreWeave - CoreWeave's stock has increased by 160% since the last bullish coverage, driven by power-limited and data center supply shortages amid the race for AI leadership [1] - The company is strategically positioned to capitalize on the growing demand for AI infrastructure [1] Leadership & Management Analysis - CoreWeave demonstrates a proven track record in scaling businesses, with smart capital allocation and insider ownership [1] - The company has shown consistent revenue growth and provides credible guidance [1] Market Disruption & Competitive Positioning - CoreWeave possesses a strong technology moat and first-mover advantage in the AI sector [1] - The company benefits from network effects that drive exponential growth and has achieved market penetration in high-growth industries [1] Financial Health & Risk Management - CoreWeave exhibits sustainable revenue growth with efficient cash flow management [1] - The company maintains a strong balance sheet and a long-term survival runway, avoiding excessive dilution and financial weakness [1] Valuation & Asymmetric Risk/Reward - CoreWeave's valuation is assessed through revenue multiples compared to peers and DCF modeling [1] - The company has institutional backing and positive market sentiment, ensuring downside protection with significant upside potential [1] Portfolio Construction & Risk Control - CoreWeave's investment strategy includes core positions (50-70%) in high-confidence, stable plays, growth bets (20-40%) in high-risk, high-reward opportunities, and speculative investments (5-10%) in moonshot disruptors [1]

Group 1 - CoreWeave is acquiring Core Scientific in an all-stock deal valued at $9 billion, expected to close in Q4 [2] - The market reaction to the acquisition news has been negative, indicating investor skepticism [2]

Group 1 - Halper Sadeh LLC is investigating Core Scientific's sale to CoreWeave, where shareholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock, resulting in Core Scientific shareholders owning less than 10% of the combined company after the transaction [1] - WNS (Holdings) Limited is being sold to Capgemini for $76.50 per share, prompting an investigation into potential shareholder rights and options [2] - The firm may seek increased consideration for shareholders, additional disclosures, or other relief and benefits on behalf of shareholders, operating on a contingent fee basis [3] Group 2 - Shareholders are encouraged to contact Halper Sadeh LLC for a free discussion regarding their legal rights and options, with contact details provided for further inquiries [4]

🔥 LATEST: CoreWeave to acquire Bitcoin miner Core Scientific in an all‑stock deal worth ~$9 B. https://t.co/xftrzlCsF3 ...

Core Viewpoint - CoreWeave has signed a final agreement to acquire Core Scientific for approximately $9 billion in an all-stock transaction, indicating a significant strategic move in the AI cloud services sector [1][3]. Group 1: Transaction Details - The acquisition price of $20.40 per share represents a 66% premium over Core Scientific's closing price on June 25 [3]. - Core Scientific shareholders will receive 0.1235 shares of CoreWeave's newly issued Class A common stock, resulting in a post-merger ownership stake of less than 10% for them [3]. - The transaction is subject to regulatory approval and shareholder consent, with an expected completion date in Q4 2025 [3]. Group 2: Strategic Implications - The acquisition aims to "verticalize" CoreWeave's data center layout by integrating Core Scientific's 13 data centers, which have a total power capacity of 1.3 gigawatts, equivalent to that of a nuclear reactor, thereby reducing the cost per unit of computing power [3]. - CoreWeave recently received the first delivery of NVIDIA's GB300 NVL72 systems, and this acquisition will enable the company to control the complete supply chain from chips to data centers [3]. Group 3: Market Valuation Concerns - The $9 billion acquisition price marks an 800% increase from Core Scientific's previous valuation of $1 billion last year, raising concerns among some analysts about a potential bubble in the market [4].

Core Acquisition Overview - CoreWeave plans to acquire Core Scientific for $9 billion, significantly expanding its data center footprint [1] - The acquisition is expected to increase CoreWeave's earnings per share (EPS) by approximately 5% post-transaction [1] Financial Impact - The deal will eliminate over $10 billion in lease expenses over the next 12 years from existing contracts [2] - Operational optimizations are projected to yield annual cost savings of $500 million by the end of 2027 [2] - A $500 million after-tax net savings (at a 21% tax rate) is sufficient to support the anticipated 5% EPS increase, excluding potential additional benefits from capacity reuse or asset divestitures [2] Capacity and Resource Management - The acquisition will enhance CoreWeave's total power capacity in the U.S. data center network to approximately 1.3 gigawatts [1] - This includes 840 megawatts from existing high-performance computing (HPC) contracts and around 500 megawatts previously used for cryptocurrency mining, with over 1 gigawatt of potential expansion [1] - Core Scientific's existing cryptocurrency mining capacity may transition to the HPC sector or be subject to asset divestiture [2] Market Position and Ratings - Macquarie maintains a "Neutral" rating on CoreWeave with a target price of $65, while giving Core Scientific an "Outperform" rating with a target price of $15 [2] - The acquisition could open new avenues for resource integration and financial optimization for both companies [2]

Core Viewpoint - CoreWeave announced an all-stock acquisition of Core Scientific, valuing the latter at approximately $9 billion based on a share exchange ratio of 0.1235 shares of CoreWeave A-class stock for each share of Core Scientific [2][3] Acquisition Details - The acquisition is expected to close in Q4 2025, pending regulatory and shareholder approvals [3] - CoreWeave's stock price is currently $159.7, with a market capitalization of $76.65 billion, while Core Scientific's stock has dropped 17.61%, resulting in a market cap of $4.4 billion [3] Company Background - CoreWeave, founded in 2017, initially focused on Ethereum mining infrastructure and has since pivoted to artificial intelligence, becoming a prominent player in the sector [4] - The company has established partnerships with major firms like NVIDIA, OpenAI, and Microsoft, providing cloud solutions for compute-intensive applications [4][5] Financial Performance - In Q1 2025, CoreWeave reported revenues of $982 million, a 420% increase from $189 million in the same period last year [8][9] - Operating expenses surged to $1.01 billion, up 487% year-over-year, leading to a net loss of $314.64 million, compared to a loss of $129.25 million in Q1 2024 [9][11] Strategic Implications - The acquisition is expected to enhance CoreWeave's operational efficiency and reduce future expansion risks by vertically integrating data center ownership [7][11] - CoreWeave anticipates significant cost savings, including the elimination of over $10 billion in future lease obligations over the next 12 years [11][12] - The company aims to achieve $500 million in annual operating cost savings by the end of 2027 through streamlined operations [12]

Core Viewpoint - CoreWeave has announced a $9.0 billion all-stock acquisition of Core Scientific, aiming to enhance its control over essential AI infrastructure, particularly power resources [1][2]. Acquisition Details - The acquisition allows CoreWeave to gain direct control over approximately 1.3 gigawatts (GW) of existing power and access to an additional 1 GW for future growth [4]. - This strategic move transitions CoreWeave from a customer renting data center space to an owner with a secure power supply, providing a competitive advantage [5]. Financial Implications - The deal is expected to eliminate over $10 billion in future data center lease costs and create $500 million in annual cost savings by the end of 2027 [12][14]. - CoreWeave was already Core Scientific's largest customer, and by acquiring the company, it effectively pays itself instead of a landlord, aiming for a more profitable business model [7]. Business Transformation - Core Scientific is undergoing a transformation from a volatile Bitcoin mining operation to modern, high-density data centers, which are more suitable for AI customers [8][9]. - The gross margin for Core Scientific's new high-density colocation and digital assets business is significantly higher at 46%, compared to only 9% for its old crypto-mining business [9][10]. Long-Term Outlook - The acquisition strengthens CoreWeave's position in the AI industry, presenting a potential entry point for long-term investors despite short-term stock price declines [11]. - Key areas to monitor include the speed of converting old mining sites into AI data centers and improvements in overall operating margins as cost savings materialize [13].

Core Scientific and CoreWeave Acquisition - Rowley Law PLLC is investigating potential securities law violations by Core Scientific and its board of directors regarding the proposed acquisition by CoreWeave [1] - The acquisition involves stockholders receiving 0.1235 shares of CoreWeave common stock for each share of Core Scientific stock held [1] - The transaction is valued at approximately $9 billion and is expected to close in the fourth quarter of 2025 [1]

Group 1 - CoreWeave Inc announced an all-stock acquisition of Core Scientific Inc, valuing the latter at $9 billion or $20.40 per share, significantly higher than its pre-deal price of under $11 [1][2] - CoreWeave's stock fell by 3.9% despite a 293% year-to-date rally, indicating investor skepticism about the merger of high-growth AI with high-volatility crypto mining [2][3] - Core Scientific has seen a 12% decline in the past month and remains negative year-to-date, yet the acquisition offer suggests nearly double its current share price [3][4] Group 2 - The acquisition is positioned as a strategic move for CoreWeave to secure cheap, scalable power for its AI infrastructure, leveraging Core Scientific's energy-dense data centers [2][4] - There is uncertainty regarding whether a 2021-style crypto valuation can be sustained in the current market environment, with investors currently not convinced [4]