While CoreWeave‘s initial $1 billion bid for Bitcoin miner Core Scientific was unceremoniously rejected just months ago—apparently $5.75 per share struck management as insufficiently generous—the AI infrastructure company’s renewed acquisition pursuit has managed to accomplish what the original offer could not: igniting a spectacular rally across crypto mining stocks that has pushed Core Scientific’s market valuation to nearly $4 billion, a rather impressive premium that suggests either CoreWeave’s negotiating strategy has evolved considerably or the market has developed an acute case of dealmaking euphoria.
The mathematics alone merit scrutiny. CoreWeave, flush with $1.3 billion in cash following its March 2025 IPO (the year’s largest tech offering at $1.5 billion), appears undeterred by Core Scientific’s rather dramatic financial trajectory—from Chapter 11 bankruptcy in December 2022 to a $580 million Q1 2025 profit that would make even seasoned restructuring specialists dizzy. Trading activity for cryptocurrency-related stocks has intensified across major exchanges, with the largest cryptocurrency exchange Binance reporting heightened interest in digital asset mining operations as institutional investors increasingly view infrastructure consolidation as a pathway to AI market exposure.
What transforms this from mere corporate maneuvering into strategic necessity is the intersection of AI’s voracious appetite for computing power and crypto mining’s established infrastructure. CoreWeave’s $1.9 billion in 2024 revenues came largely from serving AI workloads that consume electricity at rates that would make utility executives simultaneously ecstatic and terrified. Core Scientific’s mining facilities, conveniently, can be repurposed for precisely these energy-intensive AI applications—assuming one can navigate the regulatory complexities CoreWeave has flagged regarding energy access and cost management. The broader industry transition is evidenced by Core Scientific’s existing $1.2 billion agreement with CoreWeave to boost data center capacity for AI operations. The current partnership includes a contract providing CoreWeave with 500 MW capacity through the end of 2024.
The market’s response has been characteristically theatrical. Core Scientific shares surged 29% on revival news, while CoreWeave’s stock climbed nearly 25%, reflecting investor confidence in consolidation trends that apparently justify valuations divorced from traditional metrics. That Core Scientific reported $502.4 million in 2024 revenues alongside $265.5 million in net losses (admittedly due to non-cash warrant adjustments) only adds to the spectacle.
Industry observers speculate a deal could close within weeks, though terms remain undisclosed—perhaps wisely, given the market’s current enthusiasm for any transaction combining crypto infrastructure with AI ambitions. Whether this represents shrewd strategic positioning or expensive empire-building remains intriguingly unclear, though CoreWeave’s recent $2 billion debt offering suggests management remains confident in their expansion thesis.
