Core Scientific (CORZ) Nosedives 30% After $9-Billion CoreWeave Merger Announcement

Core Scientific, Inc. (NASDAQ:CORZ) is one of the stocks drowned heavily. Are you holding any?

Core Scientific nosedived by 30.5 percent week-on-week as investors unloaded positions following news that it was being acquired by CoreWeave Inc. (NASDAQ:CRWV) for $9 billion.

Last week, CoreWeave (NASDAQ: CRWV) said that it signed a definitive agreement with Core Scientific, Inc. (NASDAQ:CORZ) to acquire the latter for a $9-billion all-stock deal.

Under the terms of the agreement, Core Scientific, Inc. (NASDAQ:CORZ) stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio.

According to the companies, the acquisition will help CoreWeave verticalize its data center footprint to future-proof revenue growth and enhance profitability.

Core Scientific (CORZ) Nosedives 30% After $9-Billion CoreWeave Merger Announcement

A Research Scientist examining the results of a digital immunoassay platform.

“Through this acquisition, CoreWeave will own approximately 1.3 GW of gross power across Core Scientific’s national data center footprint1 with an incremental 1 GW+ of potential gross power available for expansion,” it said.

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Disclosure: None. This article is originally published at Insider Monkey.