CoreWeave Inc ( CRWV ) and Core Scientific Inc ( CORZ ) shares are moving lower Monday after the companies announced a merger deal.

What Happened: CoreWeave ( CRWV ) and Core Scientific ( CORZ ) entered into a definitive agreement in which CoreWeave ( CRWV ) will acquire Core Scientific ( CORZ ) in an all-stock deal.

Under terms of the agreement, Core Scientific ( CORZ ) shareholders will receive 0.1235 newly issued shares of CoreWeave ( CRWV ) common stock for each Core Scientific ( CORZ ) share held.

The deal is expected to help CoreWeave ( CRWV ) verticalize its data center footprint to “future-proof revenue growth” and amplify profitability. Following the transaction, CoreWeave ( CRWV ) will own approximately 1.3 GW of power across Core Scientific’s footprint with another 1 GW plus of potential power available for expansion.

“Verticalizing the ownership of Core Scientific’s high-performance data center infrastructure enables CoreWeave ( CRWV ) to significantly enhance operating efficiency and de-risk our future expansion, solidifying our growth trajectory,” said Michael Intrator, co-founder, chairman and CEO of CoreWeave ( CRWV ).

“Owning this foundational layer of our platform will enhance our performance and expertise as we continue helping customers unleash AI’s full potential.”

The deal implies a total equity value of $9 billion, which represents a value of $20.40 per share. The acquisition is expected to close in the fourth quarter.

Core Scientific ( CORZ ) shares had been up significantly in recent weeks following reports that the company was in talks with CoreWeave ( CRWV ) about a potential deal. Even with Monday’s pullback, Core Scientific ( CORZ ) shares are still up about 26% over the past month.

Price Action: At the time of publication, CoreWeave ( CRWV ) shares were down 3.50% at $159.10 and Core Scientific ( CORZ ) shares were down 16.8% at $14.99, according to Benzinga Pro.

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