CoreWeave (CRWV.O) has announced its plans to acquire bitcoin mining firm Core Scientific (CORZ.O) in an all-stock transaction valued at approximately $9 billion. The move highlights the increasing urgency among AI infrastructure companies to secure power and data center capabilities necessary to meet the exploding demand for artificial intelligence computing.
“Bitcoin miners’ energy-intensive sites and power contracts, built during the crypto boom, have emerged as prime targets for AI companies expanding their computing infrastructure,” the companies said.
CoreWeave stated that the merger would allow for the immediate removal of over $10 billion in future lease obligations for existing sites over the next 12 years. As part of the deal, Core Scientific shareholders will receive 0.1235 shares of newly issued CoreWeave stock for each share they own. The offer values Core Scientific at $20.40 per share — roughly a 66% premium over its stock price before deal discussions were reported in late June.
Despite the premium, shares of Core Scientific fell 22% in early trading, while CoreWeave, which is backed by Nvidia (NVDA.O), dropped 4.5%. CoreWeave CEO Michael Intrator emphasized the strategic value of the acquisition: “This acquisition accelerates our strategy to deploy AI and HPC (high-performance computing) workloads at scale.” The deal is expected to close in the fourth quarter of 2024, with the final value to be determined at that time.
The transaction underscores a growing trend of bitcoin miners shifting their business models to capitalize on the AI surge by leasing power and data center space. “CoreWeave gets full control of Core Scientific’s entire 1.3 GW power contracted and future pipeline,” said Bernstein analyst Gautam Chhugani, noting that energy availability remains the primary bottleneck for expanding AI data centers.
CoreWeave, which began as an Ethereum miner in 2017, pivoted to AI after Ethereum’s 2022 “Merge” drastically reduced mining rewards. Its revenue has surged more than eightfold in the past year, according to its IPO filing.
For Core Scientific, the deal marks a remarkable rebound after filing for bankruptcy in 2022 due to falling bitcoin prices and soaring energy costs. The company restructured and exited bankruptcy in early 2024, later signing a series of long-term contracts with CoreWeave — including a 200 MW infrastructure agreement for HPC services.
Goldman Sachs is advising CoreWeave, while Moelis and PJT Partners are serving as financial advisers to Core Scientific.
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