Core Scientific Stock Jumps 35% on Acquisition Talks with CoreWeave

Core Scientific's stock price surged by 35% on Thursday following reports that CoreWeave is in discussions to acquire the company. This news comes after CoreWeave attempted to purchase Core Scientific last year for $5.75 per share, an offer that was rejected by Core Scientific as being too low. Since then, Core Scientific's stock has seen substantial growth.

The potential acquisition by CoreWeave would mark a significant development in the relationship between the two companies, which have a long-standing partnership. This partnership includes billions of dollars in contracted commitments and has been pivotal in Core Scientific's turnaround efforts. The company has shifted its focus from bitcoin mining to AI infrastructure, converting a significant portion of its mining capacity to host high-performance compute workloads. This strategic pivot has been driven by the broader mining sector's transition towards more lucrative AI clients.

The potential deal could be finalized in the coming weeks, barring any last-minute complications. If completed, the acquisition would deepen the existing partnership between Core Scientific and CoreWeave, which has been instrumental in Core Scientific's transformation. The company's market capitalization has surged to nearly $5 billion, reflecting a valuation that is about five times higher than the implied valuation from CoreWeave's previous takeover bid.

Core Scientific's shift from a distressed bitcoin miner to a key player in the AI boom highlights the broader industry trend of firms retrofitting data centers to support AI workloads. However, analysts caution that supporting AI workloads often requires entirely new builds, not just repurposed hardware. This underscores the challenges and opportunities that lie ahead for Core Scientific as it continues to navigate its transition into the AI sector.

The relationship between Core Scientific and CoreWeave has been crucial to Core Scientific's turnaround story. Since emerging from bankruptcy in January of last year, Core Scientific has aggressively pivoted into AI infrastructure. Its 12-year partnership with CoreWeave is expected to generate $10.2 billion in revenue commitments, with 590 megawatts of infrastructure slated for delivery by early 2026. This strategic move aims to boost crypto trading and engagement on the platform, reflecting the growing importance of AI in the tech industry.