Core Scientific shares are skyrocketing today after the news that takeover talks with CoreWeave have reportedly been revived. This announcement follows Core Scientific’s record-breaking first quarter earnings, where net income more than tripled to $580 million. The historic acquisition—which would be the first of its kind in the state—could be completed in the next few weeks.

Last year, CoreWeave made a bid for crypto miner Core Scientific at $5.75 per share. According to one report, this deal would value the company at just under $1 billion. Core Scientific's decision to reject that offer appears to have been a strategic masterstroke, given the company's current market capitalization of roughly $3.6 billion. The company’s stock now trades at almost three times that initial bid price.

Core Scientific’s first quarter results were a testament to explosive financial growth. For the full year 2022, the company noted $79.5 million in revenue, $67.2 million of which came from self-mining operations. The top line came in a hair below analyst estimates. Nonetheless, the record-setting spike in net income is a reflection of the company’s substantial gains in operational efficiency and profitability.

That CoreWeave is back to chasing acquisition discussions implies that they see greater upside in Core Scientific than what’s on offer. That first offer of $5.75 per share now seems insultingly low. AA- This rating considers the firm’s dominant industry standing and very good fiscal condition.

A hostile takeover approach for Core Scientific as per the Wall Street Journal. This deal may be completed in just a matter of weeks.