CoreWeave to Acquire Core Scientific for $90 Billion, Boosting EPS by 5%

CoreWeave, a leading data center company, has announced plans to acquire Core Scientific in a deal valued at $90 billion. This acquisition is expected to significantly expand CoreWeave's data center infrastructure, with analysts estimating that it could boost the company's earnings per share (EPS) by approximately 5%.

The acquisition will increase CoreWeave's total power capacity in the United States to around 1.3 gigawatts. This includes 840 megawatts from Core Scientific's existing high-performance computing (HPC) contracts, approximately 500 megawatts previously used for cryptocurrency mining, and over 1 gigawatt of potential expansion capacity. The transaction is anticipated to be finalized in the fourth quarter of 2025, subject to regulatory approval and shareholder consent from Core Scientific.

From a financial perspective, CoreWeave has indicated that the deal will immediately eliminate over $100 billion in cumulative lease expenses for existing contract sites over the next 12 years. Through operational optimization, the company aims to achieve annual cost savings of $5 billion by the end of 2027. Based on current projections for CoreWeave's adjusted net income for 2028 and its diluted equity structure, a $5 billion after-tax net savings (at a 21% tax rate) is expected to support approximately a 5% increase in EPS. This calculation does not account for potential additional benefits from capacity reuse or asset divestment.

It is worth noting that Core Scientific's existing cryptocurrency mining capacity could be repurposed for high-performance computing or divested. The acquisition is also expected to diversify CoreWeave's financing channels, potentially lowering its capital costs and alleviating market concerns about its debt situation.

Despite the potential benefits, the financial institution maintains a "neutral" rating for CoreWeave with a target price of $65 per share. For Core Scientific, the rating is "outperform" with a target price of $15 per share. If the acquisition proceeds as planned, it could open new avenues for both companies in terms of data center resource integration and financial optimization.