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Core Scientific & CoreWeave: The Billion-Dollar Merger, Who Really Wins?

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Manage episode 503066307 series 3570269
Content provided by Anthony Power & Bryce McNallie, Anthony Power, and Bryce McNallie. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Anthony Power & Bryce McNallie, Anthony Power, and Bryce McNallie or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Anthony Power and McNallie dive deep into the Core Scientific and CoreWeave transaction, examining both sides of the equation ahead of the upcoming shareholder vote. They uncover surprising details from the newly released S4 filing that raises questions about who truly benefits from this multi-billion dollar deal.
• CoreWeave has been working with Core Scientific since 2019, evolving from a client relationship to acquisition target
• The deal began with a $1 billion offer ($5.75/share) in June, rejected before progressing to the current exchange ratio valued initially at $20.40/share
• CoreWeave's presentation reveals an additional gigawatt of power capacity not previously disclosed in Core Scientific materials
• With no price collar protection, Core Scientific shareholders face risk as the implied deal value has dropped from $20.40 to $12.79 per share
• Core Scientific executives stand to receive massive compensation packages - CEO Adam Sullivan alone would receive $131.9 million
• Ken Griffin of Citadel purchased 5.4% of Hive Digital Technologies, signaling increased institutional interest in Bitcoin mining companies
• Mining difficulty continues to rise, approaching 5% for next adjustment as global hashrate reaches 974 exahash (7-day average)
Hit the like button and subscribe to McNallie Money for more mining analysis. Let us know in the comments if you're holding shares of either company and whether you support this deal.

Sign Up for Our Free Weekly Newsletter: https://www.powermininganalysis.com/newsletter

  continue reading

Chapters

1. Introduction to CoreWeave-Core Scientific Deal (00:00:00)

2. Bitcoin Price and Market Updates (00:02:26)

3. Core Scientific & CoreWeave Stock Performance (00:08:44)

4. Timeline of the M&A Deal (00:12:10)

5. Deal Structure and Hidden Portfolio (00:15:31)

6. Executive Compensation Packages Revealed (00:22:14)

7. Hive Digital and Ken Griffin Investment (00:28:04)

8. Mining Difficulty and Closing Thoughts (00:31:16)

382 episodes

Artwork
iconShare
 
Manage episode 503066307 series 3570269
Content provided by Anthony Power & Bryce McNallie, Anthony Power, and Bryce McNallie. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Anthony Power & Bryce McNallie, Anthony Power, and Bryce McNallie or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

Anthony Power and McNallie dive deep into the Core Scientific and CoreWeave transaction, examining both sides of the equation ahead of the upcoming shareholder vote. They uncover surprising details from the newly released S4 filing that raises questions about who truly benefits from this multi-billion dollar deal.
• CoreWeave has been working with Core Scientific since 2019, evolving from a client relationship to acquisition target
• The deal began with a $1 billion offer ($5.75/share) in June, rejected before progressing to the current exchange ratio valued initially at $20.40/share
• CoreWeave's presentation reveals an additional gigawatt of power capacity not previously disclosed in Core Scientific materials
• With no price collar protection, Core Scientific shareholders face risk as the implied deal value has dropped from $20.40 to $12.79 per share
• Core Scientific executives stand to receive massive compensation packages - CEO Adam Sullivan alone would receive $131.9 million
• Ken Griffin of Citadel purchased 5.4% of Hive Digital Technologies, signaling increased institutional interest in Bitcoin mining companies
• Mining difficulty continues to rise, approaching 5% for next adjustment as global hashrate reaches 974 exahash (7-day average)
Hit the like button and subscribe to McNallie Money for more mining analysis. Let us know in the comments if you're holding shares of either company and whether you support this deal.

Sign Up for Our Free Weekly Newsletter: https://www.powermininganalysis.com/newsletter

  continue reading

Chapters

1. Introduction to CoreWeave-Core Scientific Deal (00:00:00)

2. Bitcoin Price and Market Updates (00:02:26)

3. Core Scientific & CoreWeave Stock Performance (00:08:44)

4. Timeline of the M&A Deal (00:12:10)

5. Deal Structure and Hidden Portfolio (00:15:31)

6. Executive Compensation Packages Revealed (00:22:14)

7. Hive Digital and Ken Griffin Investment (00:28:04)

8. Mining Difficulty and Closing Thoughts (00:31:16)

382 episodes

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