KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
CoreWeave Inc., a rising player in AI data centers, is acquiring Core Scientific Inc. in a bold $9 billion all-stock deal to take control of the power backbone critical for artificial intelligence infrastructure.
The Strategy Behind the Deal
CoreWeave has long relied on Core Scientific to support its infrastructure needs.
With AI workloads demanding massive energy, owning 1.3 gigawatts of power across Core Scientific’s facilities gives CoreWeave greater control and scalability.
The acquisition is expected to cut costs, eliminate lease expenses, and streamline operations.
“Owning this foundational layer enhances our performance as we unleash AI’s full potential.” – Michael Intrator, CEO, CoreWeave
Why Stocks Dropped
CoreWeave (CRWV) fell 3.3% due to shareholder dilution from the all-stock nature of the deal.
Core Scientific (CORZ) plunged 17.6% as investors questioned the valuation and long-term return potential.
Deal Breakdown & Valuation Concerns
Shareholders of Core Scientific will receive 0.1235 CoreWeave shares, implying a $20.40 value per share — but market pricing suggests a lower effective value of $19.77.
Some analysts believe the deal undervalues Core Scientific, citing:
Expected $700M in future cash profits
$5B in capex commitments from CoreWeave under prior arrangements
A missed opportunity to become a highly valued REIT, which typically trades at double the current EV/EBITDA multiple implied by the deal
Why This Matters
The acquisition marks a pivotal shift in the AI infrastructure race: power is the new gold. With traditional data center developers lagging, CoreWeave is securing its future by buying power capacity at scale — turning infrastructure into competitive advantage.
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