Core Scientific's stock price surged 35% on Thursday after The Wall Street Journal reported that CoreWeave was negotiating to acquire this cryptocurrency mining company.
The news briefly halted trading, but the momentum continued to explode after the halt was lifted. This is the second largest trading day by volume since Core Scientific returned to the Nasdaq in January 2024, after emerging from bankruptcy.
The most significant spike in volatility ever recorded was in June last year, when prices surged 40% in a session after announcing a collaborative AI expansion contract with CoreWeave. The new acquisition is closely related to this relationship, which has developed into a multi-billion dollar partnership over time.
Last summer, the two companies signed a series of 12-year contracts worth $10.2 billion, with Core Scientific committing to provide 590 megawatts of AI-ready infrastructure by early 2026.
The acquisition deal for CoreWeave in 2024 was rejected, now it is being restarted.
The Wall Street Journal reports that the acquisition deal could be finalized in the coming weeks, unless something goes wrong. If successful, the deal will strengthen CoreWeave's ties to Core Scientific beyond the scope of the contract, while reflecting a fundamental shift in the cryptocurrency mining industry due to the AI boom.
Previously, Core Scientific was just a struggling bitcoin miner. Now the company has a market value of nearly $5 billion, five times what it was when CoreWeave first offered to buy.
In 2024, CoreWeave once offered a bid of $5.75 per share for Core Scientific, corresponding to a valuation of over $1 billion. However, Core Scientific previously rejected it, claiming the purchase price was low and prioritized focusing on existing contracts. With the current stock price far exceeding the previous offer, the tables have turned.
The partnership between the two parties has become increasingly strong since the rejected proposal. They have collaborated for many years, but the 12-year contract signed in June 2023 formalized Core Scientific's provision of hundreds of megawatts of hosting power for CoreWeave's compute-heavy AI infrastructure.
Bitcoin miners pivoting to AI amid cramped space and energy constraints
Core Scientific's pivot to AI is not an isolated phenomenon. Many cryptocurrency mining companies are restructuring data centers to meet the demands of AI businesses. However, experts warn that AI infrastructure often requires comprehensive scale construction, not simply converting old mining rigs.
Nevertheless, companies like Core Scientific are taking advantage of the high demand. With limited data center space and fierce competition for power, the speed of infrastructure deployment is becoming more important than bitcoin mining.
However, on Thursday, CoreWeave's stock price fell about 1%. This is not a significant drop, but it shows that the market is reacting unevenly to news about the deal.
Meanwhile, Core Scientific has shaped its transformation story around AI. After emerging from bankruptcy in early 2024, the company has focused heavily on providing hosting for high-performance tasks rather than intensive bitcoin mining. This strategy has helped them outpace many competitors still struggling to adapt.
Currently, Core Scientific is one of the few cryptocurrency miners competing for customers in the AI field, making the most of every megawatt of power and square meter of hosting space. In this fierce race, whoever controls the infrastructure will reap attractive profits. Thanks to a 12-year contract with CoreWeave, Core Scientific has secured a solid position at the table.
Source: https://tintucbitcoin.com/tin-don-coreweave-mua-lai-core-scientific/
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