Core Scientific Stock Soars 33% as CoreWeave Reignites Billion-Dollar Acquisition Plan

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Cloud infrastructure heavyweight CoreWeave is in advanced talks to acquire former Bitcoin mining giant Core Scientific, according to sources cited by The Wall Street Journal on June 26.

Both companies have not issued statements on the negotiations despite being in the news of late, concluding major hosting deals that are increasingly making them inseparable.

But sources close to the transaction tell the Deal that an agreement may be struck in weeks, should the negotiations proceed to plan a step that would mean a dramatic acceleration of CoreWeave AI’s expansion plan.

CoreWeave AI Expansion Revisits $1 Billion Offer

CoreWeave AI Expansion

In June 2024, CoreWeave made an offer to purchase Core Scientific of 5.75 dollars per share, which would value the company at almost 1 billion dollars. The board of Core Scientific quickly dismissed that proposal as being unsolicited and poorly valuing the long term value of the company.

Since that time, the stock of Core Scientific (NASDAQ: CORZ) experienced a spectacular run, gaining more than 33% today to $16.44, compared to more than 3 times its initial issue.

It follows a comeback this year after its stock was down about 15% year-to-date considering the company emerged earlier out of bankruptcy protection. The company shares, however, are still largely below all-time highs despite the recovery.

CoreWeave AI Expansion Accelerates with Core Scientific Deal

Core Scientific’s Pivot After Bitcoin Halving

CoreWeave is publicly traded, sporting a huge $75 billion market cap, and has Microsoft as its largest customer, with 62% of the projected revenue in 2024, and rents Nvidia GPUs to such tech giants as Meta and IBM. The company has been rushing to step up its investment into AI cloud services as demand of compute infrastructure which is a major area of focus under in the CoreWeave AI expansion program is skyrocketing.

Solely dedicated to Bitcoin mining, Core Scientific has been making aggressive shifts to support AI-related infrastructure. In late 2024, it signed 12-year hosting agreements with CoreWeave to provide 200 megawatts (MW) of power capacity to AI clusters.

The board believed such contracts would result in cumulative revenue of approximately 3,5 billion dollars and would protect the company against the decreased block rewards due to a Bitcoin halving that will occur in April of 2024 a deal that greatly aligned to CoreWeave AI expansion objectives.

CoreWeave AI Expansion Gains Speed Advantage

CoreWeave AI Expansion Accelerates with Core Scientific Deal

At present, Core Scientific has 16 MW of CoreWeave GPUs up and running in its campus in Austin and has a plan to expand in many locations in Texas and Oklahoma. The firm owns 724 MW of contracted capacity throughout the U.S., where it is one of the largest operators of immersion-cooled mining machines, a configuration that is well-suited to GPU feature compute to serve the purposes of CoreWeave AI expansion plans.

Interestingly, should the deal go through, CoreWeave is likely to assimilate not only Core Scientifics infrastructure but also its fleet of Bitmain S21-grade miners and a stock of brownfields awaiting redevelopment into GPU-based data centres.

According to observers, the infrastructure that the miner has in place will provide a punch-through solution to the CoreWeave AI expansion, avoiding delays and capital requirements of greenfield projects.

Core Scientific’s Assets Gain New Purpose

One of the investment bankers, who knew of the negotiations, said the power-constrained data center ecosystem lends strategic premium to the Core Scientific base there. It is no longer a mining company when it is a turnkey platform of AI.

Even as this is being announced, some of the major financial aspects concerning whether Core Scientific shareholders will get cash, stock or a mix, are yet to be revealed. Any successful offer is likely to be priced well above the current market patient of Core Scientific as part of its strategic shift and expansion and synergies with CoreWeave AI expansion.

CoreWeave AI Expansion Accelerates with Core Scientific Deal

With both companies continuing to bet more on the power of AI, the potential merger brings to the fore how conventional crypto mining facilities are being remodeled to provide the next advancement in high-performance computing. The attention is now on whether this ambitious partnership will happen and faster CoreWeave AI expansion throughout North America.

Conclusion

The acquisition will facilitate the CoreWeave AI growth as it would give the company access to infrastructure and power supply capabilities of Core Scientific. Such a decision will allow CoreWeave to quickly increase capacity, attract the increasing AI market, and firm up its position in the market of cloud computing without the expensive costs of building construction delays.

Summary

CoreWeave is discussing the acquisition of Core Scientific a former Bitcoin miner transitioning to AI infrastructure. Once this deal goes through, it will underpin the CoreWeave AI expansion to provide an additional 724 MWs of power capacity and GPU-ready locations. The shift in Core Scientific to focus on mining is associated with increasing AI demand. Stock shares rocketed on talks, but the conditions have not yet been revealed. The deal has the potential to accelerate CoreWeave AI into the power-limited data center market in North America.