Core Scientific Shares Surge 25% on CoreWeave Buyout Talks

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 of its $1 billion offer. This development places both companies at the center of a high-stakes showdown between cryptocurrency mining and artificial intelligence infrastructure.

CoreWeave, a former crypto miner, has rapidly become one of the leading providers of AI cloud infrastructure, hosting workloads for major tech companies. Its success is now dependent on securing massive, power-hungry data center capacity, an area where Core Scientific has significant resources. The two entities already have a firm partnership, with Core Scientific committed to providing 590 megawatts of infrastructure by early 2026 under a $10.2 billion, 12-year agreement. This strategic alliance is crucial for Core Scientific's transition from Bitcoin mining to high-performance computing (HPC) and artificial intelligence (AI) hosting. For CoreWeave, acquiring Core Scientific would secure a critical source of GPU-capable data center space, giving it a competitive edge as AI demand surges and Nvidia-based workloads become increasingly valuable.

No final price has been disclosed, but analysts put the deal at over $30 a share—nearly twice its current valuation and significantly higher than last year's $5.75 bid. The rally temporarily halted trading and sent Core Scientific's market capitalization to nearly $5 billion, reflecting investor confidence in AI infrastructure as 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 expertise with Core Scientific's physical infrastructure.

The sale is emblematic of a broader movement where Bitcoin miners are racing to switch their facilities to AI and HPC workloads to achieve better margins and more stable revenues. Core Scientific's transformation has already paid off, with its valuation more than quintupling over the last year, even as Bitcoin prices and rewards have fallen. 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 goes through, it could be followed by a series of similar deals in the sector as power-dense miners are targeted by AI infrastructure players. However, strategists warn of high execution risks, including capacity delivery issues, regulatory challenges, and volatility in AI demand.

For investors, the CoreWeave-Core Scientific drama highlights the emerging economics of digital infrastructure. As AI workloads drive demand for power and cooling, the lines between crypto mining and cloud computing are blurring. The merger could set a new standard for valuing the space, transitioning from pure exposure to Bitcoin prices towards a hybrid model of AI, cloud, and digital asset hosting. However, all signals are not bullish. Insiders have given conflicting signals, with Director Yadin Rozov buying 30% more of the company, while CEO Adam Sullivan sold $6 million worth of shares this year. Core Scientific's revenues fell 55% from last year, and the company remains exposed to volatile Bitcoin prices and the funding requirements of AI expansion.

CoreWeave's fresh buyout talks with Core Scientific are more than a merger—they indicate that 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.