Bitcoin miner Core Scientific (NASDAQ:CORZ) has rejected an all-cash buyout offer from Nvidia-backed cloud provider CoreWeave, stating that the offer undervalues the company.

“The board concluded that the CoreWeave proposal significantly undervalues the company and is not in the best interests of the company and its shareholders,” Core Scientific announced in a statement.

Core Scientific received the unsolicited, non-binding proposal from CoreWeave on June 3. The offer aimed to acquire all of Core Scientific’s outstanding shares on a fully diluted basis for $1.02 billion, or $5.75 per share in cash.

Despite the rejection, the two companies have signed a series of 12-year contracts on the same day. These agreements include a deal where Core Scientific will provide CoreWeave with approximately 200 MW of infrastructure to support its high-performance computing services.

Cryptocurrency mining requires substantial electricity, leading larger companies and AI technology firms to target these miners to consolidate power supplies for their energy-intensive operations.

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