CoreWeave Acquires Core Scientific for $9 Billion 

CoreWeave, a fast-growing AI infrastructure company backed by Nvidia, has announced plans to acquire Core Scientific in a $9 billion all-stock deal. 

CoreWeave is not buying into cryptocurrency; instead, it is acquiring energy assets. The company aims to secure long-term infrastructure to meet the surging demand for high-performance AI computing.

Core Scientific, once a major Bitcoin mining firm, owns over 1.3 gigawatts of contracted power.

That scale of energy access has become a key asset in the race to build and operate AI data centers.

“This acquisition accelerates our strategy to deploy AI and HPC (high-performance computing) workloads at scale,” said CoreWeave CEO Michael Intrator.

From Crypto to Compute

Both companies began as crypto miners. However, CoreWeave pivoted to AI after Ethereum’s 2022 upgrade, known as “The Merge,” made mining less profitable. 

Core Scientific, hit by falling bitcoin prices and high energy costs, filed for bankruptcy in late 2022. It restructured and emerged from bankruptcy in early 2024.

Since then, Core Scientific has looked to expand beyond crypto. The company began leasing its energy-rich infrastructure to AI firms, including CoreWeave.

This deal now gives CoreWeave full control of that infrastructure. According to analysts, it sets a new benchmark for other Bitcoin miners hoping to enter the AI sector.

Terms of the Deal

Core Scientific shareholders will receive 0.1235 shares of CoreWeave stock for each share they hold. 

The offer values Core Scientific at $20.40 per share, which is roughly 66% above its price before the deal talks became public.

Despite the premium, Core Scientific’s stock dropped 22% in early trading following the announcement. 

CoreWeave’s stock fell by about 4.5%. However, industry analysts believe the long-term benefits outweigh the initial market reaction.

The deal is expected to close in the fourth quarter of 2025. CoreWeave stated that the acquisition will eliminate more than $10 billion in lease commitments over the next 12 years.

A Rising Power Need

The rise of AI has led to an urgent need for computing power as AI models require massive energy inputs to function at scale. 

They run around the clock and need continuous power and cooling. As a result, energy-rich Bitcoin mining operations are now attracting attention from AI companies. 

Their infrastructure, once dedicated to mining, is well-suited for powering AI workloads.

“Power remains the biggest constraint for AI data center expansion,” said Gautam Chhugani, an analyst at Bernstein. “CoreWeave gets full control of Core Scientific’s entire 1.3 GW power pipeline.”

Also read: Are AI Data Centers a Growing Strain on the U.S. Power Grid?

The Turning Point

What began as a rejection, Core Scientific turned down CoreWeave’s first offer in June 2024, has now become a strategic alignment. 

Following a series of 12-year agreements, including a deal for 200 megawatts of infrastructure, the two companies saw the long-term benefit of merging.

Growth

CoreWeave’s growth was fast. In 2024, the company went public, reporting over 8x revenue growth year-over-year. 

It provides cloud services using Nvidia’s AI chips and has a market valuation of approximately $79 billion.

With this acquisition, CoreWeave gains critical infrastructure and strengthens its position in the competitive AI infrastructure market. 

By securing power at scale, CoreWeave is laying the foundation for sustained growth. Other AI firms will likely follow suit, targeting energy-rich firms to support their expansion.