Bitcoin miner Core Scientific on Thursday rejected an all-cash offer from Nvidia-backed specialized cloud provider CoreWeave, saying that the offer undervalues the company.

"The board determined that the CoreWeave proposal significantly undervalues the company and is not in the best interests of the company and its shareholders," Core Scientific said in a statement.

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

Separately, the two companies had also signed a series of 12-year contracts on the same day.

The contracts include an agreement under which Core Scientific will provide CoreWeave with about 200 MW of infrastructure to power its high-performance computing services.

Crypto miners use vast amounts of electricity to run their operations and are being increasingly targeted by bigger peers and AI technology companies as they try to consolidate power supply for their energy-hungry enterprises.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru: Editing by Tasim Zahid)