Nvidia-backed CoreWeave to buy Core Scientific to power AI growth

The $9 billion deal reflects a growing trend where former bitcoin mining facilities, with existing power contracts and data center infrastructure, are being repurposed by AI firms like CoreWeave to support large-scale, high-performance compute demands

Cloud infrastructure provider CoreWeave has announced plans to acquire Core Scientific, a major cryptocurrency mining firm, in an all-stock transaction valued at approximately $9 billion. The acquisition, revealed on July 7, underscores the escalating race among AI infrastructure firms to secure power-rich data center assets amid soaring demand for artificial intelligence computing capabilities.

The deal comes at a time when bitcoin mining facilities—once the center of crypto speculation—are being repurposed to serve the power and cooling needs of large-scale AI operations. With their existing power contracts and data center setups, these facilities have become attractive targets for AI firms like CoreWeave seeking to scale high-performance compute infrastructure.

Under the terms of the deal, Core Scientific shareholders will receive 0.1235 CoreWeave shares for each share they hold, translating to a valuation of $20.40 per share—about 66% higher than the pre-rumor trading price in late June. The agreement is expected to close in the fourth quarter of 2025.

Despite the premium, Core Scientific shares dropped by 22% in early trading following the announcement, while CoreWeave’s stock fell 4.5%. According to CoreWeave, the deal will allow the company to eliminate over $10 billion in future lease obligations for data center infrastructure over the next 12 years.

Crypto pivot sparks AI revival

The acquisition is being viewed as a strategic win for both companies. CoreWeave, originally launched as an Ethereum miner in 2017, pivoted to AI infrastructure following Ethereum’s shift away from proof-of-work in 2022. Backed by Nvidia and now valued at nearly $79 billion, the firm has experienced rapid growth—its revenue surged more than eight times last year.

For Core Scientific, the acquisition represents a significant turnaround. The company filed for bankruptcy in 2022 after struggling with plummeting bitcoin prices and soaring energy costs. It re-emerged from bankruptcy in early 2024 and has since been repositioning itself as a key player in the AI infrastructure ecosystem.

The two companies had earlier signed long-term agreements, including a 12-year contract that will see Core Scientific supply CoreWeave with 200 MW of infrastructure to power its AI workloads. Analysts suggest the move may set a precedent for other bitcoin miners exploring opportunities within the AI sector.