CoreWeave is in advanced discussions to acquire Core Scientific, approximately one year after the Bitcoin miner rejected the AI cloud provider's initial $1 billion takeover bid, according to a report by The Wall Street Journal on Thursday.
The renewed acquisition talks highlight the growing convergence between cryptocurrency mining infrastructure and artificial intelligence computing needs, as companies seek to capitalize on the surging demand for high-powered data centers.
Core Scientific shares surged more than 22% following the report, trading at approximately $15 and giving the company a market value of roughly $3.6 billion12. The stock hit a six-month high, with some reports showing gains of up to 30%34.
CoreWeave's stock remained relatively steady, edging down slightly as is typical for acquiring companies in merger scenarios2. The AI infrastructure provider, which went public in March and is currently valued at approximately $77 billion, previously offered $5.75 per share for Core Scientific in June 202415.
Core Scientific rejected that earlier proposal, stating it "significantly undervalued the company," according to a company press release6. The miner's stock now trades at more than double CoreWeave's previous offer2.
The two companies maintain a robust existing relationship that provides context for the acquisition talks. CoreWeave is already Core Scientific's largest tenant, utilizing 590 megawatts of infrastructure and paying approximately $850 million annually1.
In February, the companies announced a $1.2 billion expansion at Core Scientific's Denton, Texas site, bringing CoreWeave's total contracted power to approximately 590 megawatts across six Core Scientific locations2. The partnership includes 12-year contracts projected to generate over $10 billion in revenue for Core Scientific2.
"We are thrilled to deepen our relationship with CoreWeave as we continue developing large-scale HPC projects that power advanced AI," said Adam Sullivan, Core Scientific's chief executive, in February2.
Core Scientific operates 10 data centers with 1,300 megawatts of available power capacity and has pivoted from traditional Bitcoin mining toward high-performance computing services1. The company emerged from bankruptcy in 2023 and reported first-quarter profit of $580 million this year23.
CoreWeave, founded in 2017 as a cryptocurrency mining operation called Atlantic Crypto, transformed into an AI cloud computing provider after the 2018 crypto crash45. The company serves major clients including Microsoft, which accounted for 62% of its 2024 revenue6.
A deal could be finalized in the coming weeks if negotiations proceed without setbacks, though specific terms remain undisclosed12.
