CoreWeave Acquires Core Scientific for $9 Billion Boosting AI Capacity

CoreWeave, a prominent AI infrastructure provider, has successfully completed its acquisition of Core Scientific, a significant player in the Bitcoin mining and hosting sector. The deal, valued at approximately $9 billion, is an all-stock transaction where existing Core Scientific shareholders will receive 0.1235 shares of newly issued CoreWeave Class A common stock for each share they hold. This strategic move aims to bolster CoreWeave's data center capacity, enabling it to better support artificial intelligence and high-performance computing (HPC) workloads.

The acquisition grants CoreWeave control over approximately 1.3 GW of gross power across Core Scientific’s extensive national data center network, with an additional 1 GW+ of potential gross power available for future expansion. This significant increase in capacity is expected to enhance CoreWeave's ability to meet the growing demands of AI and HPC applications.

Core Scientific, known for its substantial Bitcoin mining operations, holds 977 BTC on its balance sheet, making it one of the largest corporate Bitcoin holders. Despite CoreWeave's origins in crypto mining, the acquisition does not necessarily indicate a return to the sector. Instead, CoreWeave plans to repurpose Core Scientific’s assets toward HPC usage or potentially divest the crypto mining business over the medium term.

Shareholders of Core Scientific will receive a premium of approximately 66% over the closing price of $12.30 per share on June 25. Upon completion of the transaction, Core Scientific shareholders are expected to own less than 10% of the combined company. This acquisition marks a significant milestone for CoreWeave, which has been pursuing Core Scientific for over a year. The initial 2024 bid of $5.75 per share, valuing Core Scientific at just over $1 billion, was rejected as being too low. However, Core Scientific’s market capitalization more than tripled over the following year, driven by sustained growth in its core business.

Core Scientific’s earnings more than doubled in the first quarter of 2025, reaching $580 million. However, revenue was adversely impacted by the Bitcoin halving. Takeover discussions resurfaced last month, reflecting Core Scientific’s rapid growth and the potential for a new deal that better aligns with its current valuation. This acquisition is expected to strengthen CoreWeave's position in the AI and HPC sectors, leveraging Core Scientific’s extensive data center infrastructure to support advanced computing needs.