GPU cloud provider CoreWeave has agreed to a definitive $9 billion all-stock deal to acquire Bitcoin miner Core Scientific.
This major transaction signifies CoreWeave’s strategic move to leverage Core Scientific’s extensive infrastructure portfolio for growth in artificial intelligence (AI) and high-performance computing (HPC).
The acquisition represents a deliberate shift away from the volatility historically associated with cryptocurrency mining revenue streams toward the burgeoning demand for computational power needed by AI and HPC.
Market reaction was skeptical. CoreWeave’s stock price dropped 3.6% following the announcement, reflecting investor apprehension about the deal’s financial risks and near-term profitability potential.
Wall Street analysts expressed significant reservations. Gil Luria of D.A. Davidson noted the acquisition primarily secures valuable infrastructure capacity for CoreWeave’s future growth ambitions, rather than offering immediate financial gains or synergies.
Mizuho Securities analysts subsequently downgraded CoreWeave’s stock rating from ‘Outperform’ to ‘Neutral.’ Their move cited concerns over a shifted risk-reward balance following the company’s 288% stock surge since its IPO.
CoreWeave intends to repurpose Core Scientific’s existing mining infrastructure and data center assets to directly support its expanding AI and HPC customer base.