CoreWeave Revives Core Scientific Buyout Talks, Stock Soars 25%

Core Scientific (CORZ) shares surged over 25% this week on news that AI-cloud provider CoreWeave revived bid negotiations with the Bitcoin mining giant after last year’s rejection as too low of its $1 billion offer, and now places both companies in the center ring of a high-stakes showdown of cryptocurrency mining and artificial intelligence infrastructure. Why CoreWeave Needs Core Scientific—and Why Now CoreWeave, itself a former crypto miner, has rapidly become one of the leading providers of AI cloud infrastructure, hosting workloads for Microsoft and Meta. Its livelihood now is predicated on being able to secure massive, power-hungry data center capacity—something in which Core Scientific has plenty. The two entities already have a firm partnership, with Core Scientific to provide 590 megawatts of infrastructure by early 2026 under a $10.2 billion, 12-year agreement. This strategic alliance is the cornerstone of Core Scientific’s transition from risk-thriving Bitcoin mining to high-performance computing (HPC) and artificial intelligence (AI) hosting. For CoreWeave, acquiring Core Scientific would lock up a critical source of GPU-capable data center space, giving it a competitive edge as AI demand explodes and Nvidia-based workloads become the new gold rush. Deal Terms, Valuation, and Market Reaction No final price has been disclosed but Cantor Fitzgerald analysts put the deal at over $30 a share—nearly twice its current valuation and a far cry from last year’s spurned $5.75 bid. The rally, which temporarily caused the stock to halt trading, sent Core Scientific’s market capitalization to nearly $5 billion, a reflection of investor confidence that AI infrastructure is now the most sought-after asset in the industry. CoreWeave’s shares declined modestly on the news, as investors weigh the cost of a potential all-stock deal and the complexity of combining two capital-intensive businesses. The deal has the potential to create a vertically integrated titan, combining CoreWeave’s software and cloud history with Core Scientific’s physical infrastructure. What This Means for Mining Valuations and the AI Pivot The sale is emblematic of a broader movement: Bitcoin miners are racing to switch their facilities to AI and HPC workloads in order to get better margins and more certain revenues. Core Scientific’s transformation already has paid off, with its valuation more than quintupling over the last year—even as Bitcoin prices and rewards have fallen through the floor. The company’s Q1 2025 net income was more than $580 million, although revenue from mining collapsed after the recent Bitcoin halving. If the deal happens, it will be followed by a series of such deals in the sector as power-dense miners are placed under the scanner by AI infrastructure players as prime targets. Strategists warn that execution risks remain high: mistakes on delivering the capacity they had promised, regulatory challenges, and volatility in AI demand are all spoilers for the upside. The Crypto-AI Convergence For investors, the CoreWeave-Core Scientific drama is an education in the emerging economics of digital infrastructure. As AI workloads drive the demand for power and cooling, the lines between crypto mining and cloud computing are blurring. The merger could set a new standard for how to value the space—transitioning from pure exposure to Bitcoin prices towards a hybrid model of AI, cloud, and digital asset hosting. All signals, however, are not bullish. Insiders have been giving conflicting signals: Director Yadin Rozov just bought 30% more of the company, while CEO Adam Sullivan sold $6 million worth of shares this year. Core Scientific’s revenues, meanwhile, fell 55% from last year, and the company remains exposed to both volatile Bitcoin prices and the funding requirements of AI expansion. Bottom Line CoreWeave’s fresh buyout talks with Core Scientific are more than a merger—they’re an indication the future of crypto mining lies in powering the AI revolution. As investors chase the next generation of digital infrastructure, the future of this deal could set valuations, strategy, and sector leadership for the decade ahead.

Source: Coinpaper