Stonepeak is in talks to invest in data center operator Princeton Digital Group, as the US infrastructure investor seeks to build up its presence in Asia Pacific https://t.co/5B1IEC2obC ...

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 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].

CoreWeave reached an agreement to acquire longtime data center partner Core Scientific in an all-stock deal worth roughly $9 billion, the company said Monday. https://t.co/blVADbx1Br ...

Company Acquisition - CoreWeave is acquiring Core Scientific for $9 billion, aiming to enhance its data center infrastructure and profitability [1][2] - The acquisition is expected to generate significant cost savings by streamlining operations and eliminating lease overhead [2][3] Strategic Goals - The deal allows CoreWeave to pursue infrastructure financing strategies, reducing capital costs and providing more control over power capacity [3][4] - CoreWeave's CEO stated that this acquisition accelerates their strategy to deploy AI and high-performance computing (HPC) workloads at scale [3][4] Market Context - The acquisition occurs amidst a record high in AI startup mergers and acquisitions, with deal volume and valuation increasing significantly [5][6] - Mergermarket data indicates that the value of M&A deals involving AI startups rose by 288% to $49.9 billion last year, with a 53% increase in the number of deals [6][7] - In 2024, AI-related M&A spending has already surpassed the previous year by 11%, totaling $55.3 billion from January 1 to July 2 [7]

Summary of the Conference Call for Runze Technology Industry Overview - The IDC (Internet Data Center) sector is currently at a low position, with market expectations also low, making it a favorable time for investment due to factors such as the growth of NB new cards, domestic cards, and an increase in overseas TOKEN numbers, enhancing the cost-effectiveness of the IDC sector [2][4] - Despite previous policy factors causing delays in bidding, the overall situation in the IDC industry remains normal, with expected improvements in the third quarter driven by new card factors and increasing overseas TOKEN numbers [4] Company Insights - Runze Technology has strategically positioned itself in the park-level data center sector since its inception, with each node starting at a capacity of 100 MW, aligning well with the demands of large enterprises in the AI era [2][5] - The company has substantial resource reserves, totaling approximately 2.5 GW across locations such as Langfang, Pinghu, Foshan, Huizhou, Chongqing, Lanzhou, and Hainan, comparable to major competitors like GDS [2][5] - As of the end of 2024, Runze's delivery scale was about 500 MW, with an expected delivery capacity of 420 MW in 2025, and significant energy evaluation reserves in the eastern region, indicating strong long-term growth potential [2][5][6] - Runze Technology is the only publicly listed company in A-shares that collaborates with leading internet giants, increasing the likelihood of securing new and expanded orders in the future [2][6] Financial Performance - In 2024, Runze's financial performance was impacted by two main factors: the renovation of four buildings and impairment losses from the sale of certain components of computing equipment [3][6] - The first quarter of 2025 continued to feel the effects of the renovations, but by the end of the first quarter, 90% of the renovations had been completed, with expectations for significant recovery in revenue and profit in the second quarter [2][3][6] - Overall, the company's delivery and industrial promotion remain normal, and the largest impairment factor last year was unrelated to its core business, maintaining confidence in the company's future development [3][6]

Summary of CoreWeave Acquisition of Core Scientific Conference Call Company and Industry - **Companies Involved**: CoreWeave and Core Scientific - **Industry**: High-Performance Computing (HPC) and AI Infrastructure Core Points and Arguments 1. **Acquisition Announcement**: CoreWeave has signed an agreement to acquire Core Scientific in an all-stock transaction, with Core Scientific stockholders receiving 0.1235 shares of CoreWeave Class A common stock for each share of Core Scientific [5][13] 2. **Strategic Importance**: The acquisition is aimed at accelerating CoreWeave's strategy to deploy AI and HPC workloads at scale, enhancing operational efficiencies and solidifying growth [6][9] 3. **Infrastructure Control**: CoreWeave will gain control over Core Scientific's high-performance data center infrastructure, which includes 1.3 gigawatts of existing gross power capacity and over 1 gigawatt of expansion capacity [8][9] 4. **Operational Efficiency**: The acquisition is expected to drive significant cost savings by streamlining operations, eliminating third-party lease obligations, and enhancing financial flexibility [10][14] 5. **Financial Impact**: The deal is projected to eliminate over $10 billion in future lease liabilities and achieve $500 million in annual run rate cost savings by the end of 2027 [15][45] 6. **Power Ownership**: CoreWeave will gain greater control over a critical power footprint, allowing for repurposing existing capacity to meet evolving client needs [11][12] 7. **Employee Expertise**: The acquisition will bring over 300 employees with expertise in power procurement, construction, and site management, enhancing CoreWeave's capabilities [11][12] 8. **Future Growth**: The acquisition is seen as a strategic step to future-proof revenue growth and enhance core profitability by verticalizing the data center footprint [9][10] Additional Important Content 1. **Transaction Details**: The total equity value of the transaction is estimated at $9 billion, based on a fully diluted basis and CoreWeave's five-day volume-weighted average price [13][14] 2. **Closing Timeline**: The transaction is expected to close in Q4 2025, subject to regulatory approvals and Core Scientific's stockholder approval [14] 3. **Capacity and Flexibility**: The acquisition includes 500 megawatts of capacity from cryptocurrency mining data centers, which can be converted to HPC or divested [8][15] 4. **Cost of Capital**: The acquisition is expected to be leverage neutral and enhance access to diverse financing sources, significantly driving down the cost of capital [15][18] 5. **Market Positioning**: The acquisition positions CoreWeave to better serve large-scale clients and compete effectively in the AI infrastructure market [33][34] 6. **Repurposing Strategy**: CoreWeave plans to repurpose existing assets for AI infrastructure while not expanding into cryptocurrency operations [41][42] This summary encapsulates the key points discussed during the conference call regarding the acquisition of Core Scientific by CoreWeave, highlighting the strategic, operational, and financial implications of the deal.

CoreWeave founders Brian Venturo, at left in sweatshirt, and Mike Intrator slap five after ringing the opening bell at Nasdaq headquarters in New York on March 28, 2025.Artificial intelligence hyperscaler CoreWeave said Monday it will acquire Core Scientific, a leading data center infrastructure provider, in an all-stock deal valued at approximately $9 billion. Coreweave stock fell about 4% on Monday while Core Scientific stock plummeted about 20%. Shares of both companies rallied at the end of June after t ...

Transaction Overview - CoreWeave will acquire Core Scientific in an all-stock transaction at a fixed exchange ratio of 0.1235 CoreWeave share per Core Scientific share[9] - The acquisition is expected to result in CoreWeave owning less than 10% of the combined entity at close[9] - The deal is expected to close in Q4 2025, subject to regulatory approval and customary closing conditions[9] Financial Impact and Synergies - The acquisition is projected to immediately eliminate over $10 billion in future lease overhead for existing contractual sites[9] - CoreWeave anticipates over $500 million in fully ramped, annual run rate cost savings by the end of 2027 through streamlined operations[9, 22] - The transaction is expected to be leverage neutral, while providing access to diverse financing sources at a more attractive cost of capital[9] Assets and Capacity - Core Scientific's assets include over $760 million in fixed assets and right-of-use assets, and over $770 million of cash and liquid digital assets[10] - Core Scientific has a current portfolio of 1.3GW of power capacity with over 1GW of potential expansion gross power available[10] - Core Scientific has approximately 500MW of mining data center gross power capacity, which can be optionally converted to HPC[11] Strategic Benefits - The acquisition will give CoreWeave direct control over approximately 1.3GW+ of gross power, with the majority already under CoreWeave contract[18] - CoreWeave can unlock approximately $5B of committed capex for more efficient financing[25] - CoreWeave will gain greater control over a critical power footprint and optionality for future power capacity[15]

JUST IN: @CoreWeave has agreed to buy crypto-mining data center operator @Core_Scientific for roughly $9 billion in an all-stock https://t.co/yRlVkfRfpc @FranciscoMemor.https://t.co/BEemBLPcc5 ...