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]