AI infrastructure firm CoreWeave has agreed to acquire Bitcoin miner Core Scientific in an all-stock deal worth approximately $9 billion, the companies announced Monday. The transaction underscores the race among AI firms to secure energy and data center capacity as demand for high-performance computing (HPC) skyrockets.
A Premium Pivot to AI
The deal values Core Scientific at $20.40 per share, a 66% premium to its pre-announcement price in late June. Core Scientific shareholders will receive 0.1235 CoreWeave shares per owned share. The acquisition is expected to close in Q4 2024 and will immediately eliminate $10 billion in future lease obligations tied to Core Scientific’s data centers over the next 12 years.
Why Bitcoin Miners Are AI’s Newest Targets
Bitcoin miners’ energy-rich infrastructure has become a goldmine for AI companies struggling to secure power for data centers. Core Scientific’s 1.3 gigawatts of contracted power will accelerate CoreWeave’s expansion in AI workloads. “This acquisition deploys AI and HPC at scale,” said CoreWeave CEO Michael Intrator. Bernstein analyst Gautam Chhugani noted the deal could set a precedent for other crypto miners eyeing AI transitions.
From Crypto Collapse to AI Revival
Core Scientific, which emerged from bankruptcy in early 2024, had rejected CoreWeave’s initial June offer as undervalued. The companies later signed 12-year power agreements, including a 200-megawatt deal for AI infrastructure. CoreWeave, backed by Nvidia, has seen revenue surge 8x year-over-year as AI demand explodes. With Bitcoin miners diversifying into AI, this merger signals a seismic shift in tech’s energy wars.