Core Scientific Stock Jumps 33% on CoreWeave Acquisition Talks

Core Scientific's stock price surged by 33%, reaching $16.44, following reports that CoreWeave, a cloud giant valued at over $75 billion, is in renewed talks to acquire the company. This development comes after Core Scientific's previous rejection of a $5.75 per share offer from CoreWeave in 2024. The current stock price represents a significant rebound from a 15% year-to-date decline, reigniting investor interest in a potential deal that many had considered dead.

CoreWeave's renewed interest in Core Scientific is driven by the latter's strategic shift from Bitcoin mining to providing AI infrastructure. In late 2024, Core Scientific signed a 12-year agreement with CoreWeave to deliver up to 200 megawatts (MW) of power capacity for GPU clusters, essential for machine learning workloads and enterprise AI models. This deal is expected to generate $3.5 billion in cumulative revenue over its term. Core Scientific's infrastructure, including 724 MW of contracted power and extensive immersion-cooled rigs, positions it as a key player in North America's data center landscape.

The market context for this potential acquisition is one of increasing demand for AI infrastructure, with cloud providers scrambling for space, power, and hardware amidst a global GPU shortage. CoreWeave, which has grown rapidly since going public with Microsoft as its biggest customer, is facing a supply-demand mismatch that is driving investor confidence in companies like Core Scientific. The potential acquisition is seen as a strategic move for CoreWeave to expand its AI compute capabilities.

Analysts expect that any new offer from CoreWeave will be significantly higher than the previous $5.75 per share bid, given Core Scientific's improved fundamentals and diversified revenue streams. According to bankers following the situation, a deal could be worth $25-$30 per share, representing a 50-80% premium over current levels. This potential valuation has fueled speculation and optimism among investors, who see Core Scientific as a top target for hyperscale data center expansion.

Technical indicators also support a bullish outlook for Core Scientific's stock. The company's Relative Strength Rating has been upgraded to 86, indicating strong price performance relative to its peers. Additionally, the accumulation/distribution rating shows institutional buying, further bolstering investor confidence. Traders on StockTwits have identified $18.60 as the next resistance level, which is the post-relist high. If a deal is announced or terms are favorable, Core Scientific's stock price could retest or break above that level.

The 33% surge in Core Scientific's stock price reflects not only merger speculation but also the evolving value of mining infrastructure in a post-Bitcoin-halving world. Core Scientific's transition to AI hosting, long-term power assets, and deep relationship with CoreWeave make it a unique asset in today's compute-starved environment. As merger talks progress, investors should expect volatility to remain high but also look for more upside if the terms confirm the company's growing value.