CoreWeave has announced its acquisition of Core Scientific in a $9 billion all-stock deal. Following the announcement, shares of CoreWeave (CRWV) fell by 3.6%, reaching a low of $153.97. Analysts expressed concerns about the acquisition's potential impact on CoreWeave's profitability. Gil Luria from D.A. Davidson commented that the deal does not directly enhance CoreWeave's profits, suggesting that the acquisition is more about preventing Core Scientific from transferring its capacity to competitors. Analysts at Mizuho have downgraded CoreWeave's rating from 'Outperform' to 'Neutral', stating that after a significant 288% increase in stock value since its IPO in March, the risk-reward profile for the stock appears balanced. The acquisition adds to the volatility for CoreWeave, especially since Core Scientific's business is closely connected to the fluctuating cryptocurrency market, specifically Bitcoin. CoreWeave plans to explore options for repurposing Core Scientific's assets amidst market uncertainties, a strategy some other companies have adopted to safeguard revenue.

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