What's Going On With Core Scientific Shares Thursday

Zinger Key Points
  • Core Scientific rejected an unsolicited acquisition proposal from CoreWeave.
  • BTIG analyst Gregory Lewis maintained a Buy rating on Core Scientific and raised the price target from $8 to $10.

Core Scientific, Inc. CORZ shares are trading higher on Thursday afternoon after the company announced the rejection of an unsolicited acquisition proposal from CoreWeave to acquire Core Scientific for $5.75 per share in cash.

What To Know: Core Scientific, one of the largest owners and operators of high-powered digital infrastructure for bitcoin mining and hosting services in North America, received an unsolicited non-binding proposal from CoreWeave this week.

The proposal followed the two companies entering into a series of 12-year contracts, under which Core Scientific would provide approximately 200 MW of infrastructure to host CoreWeave’s high-performance compute services, expected to generate over $3.5 billion in cumulative revenue. However, Core Scientific said the proposal “significantly undervalues” the company and was not in the best interests of its shareholders.

Related Link: Core Scientific Rejects Unsolicited Proposal from CoreWeave

Core Scientific said it remains focused on executing its previously announced contracts with CoreWeave and expanding its HPC hosting business. The company expects the predictable, recurring revenue from HPC hosting to provide steady cash flows and balance the variability of its bitcoin mining operations.

Additionally, BTIG maintained a Buy rating on Core Scientific and raised its price target from $8 to $10.

Price Action: Core Scientific shares were up by 16% at $8.30 at the time of writing, according to Benzinga Pro.

See Also: Jim Cramer Recommends Buying PNC Financial Services, Calls MasTec A ‘Great Infrastructure Play’

Image: Courtesy of Corescientific Inc.

Market News and Data brought to you by Benzinga APIs
Posted In: NewsMoverswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!