Elizabeth H. Volk
2 min read
In This Article:
Core Scientific (CORZ) stock has spiked 30% intraday following reports of advanced acquisition negotiations with CoreWeave (CRWV), according to The Wall Street Journal. The surge to its highest levels since January has carried CORZ well above its upper Bollinger Band, with the 14-day Relative Strength Index (RSI) approaching 80 - firmly into overbought territory.
The potential deal comes at a time when Core Scientific's market valuation has reached approximately $3.7 billion, marking a substantial increase from CoreWeave's previously rejected bid of $5.75 per share, or about $1 billion, last year. In the most recent fiscal year, CORZ reported $115.3 million in total revenue and $56.2 million in adjusted EBITDA, while successfully mining 1,414 Bitcoin (BTCUSD).
Meanwhile, CoreWeave has experienced remarkable success since its March 2025 IPO, with its stock climbing nearly 325%. On today’s news, CRWV is down about 1%.
The strategic partnership between Core Scientific and hyperscaler CoreWeave has already been established through their June 2024 agreement, where Core Scientific committed to providing hundreds of megawatts in hosting capacity through 12-year contracts. The potential merger would create a powerhouse in both cryptocurrency mining and AI infrastructure, capitalizing on Core Scientific's extensive mining fleet and CoreWeave's growing AI capabilities.
Core Scientific's position as one of North America's largest digital infrastructure operators for bitcoin mining and high-performance computing makes it an attractive acquisition target, particularly given the industry's increasing focus on artificial intelligence (AI) capabilities.
At the same time, CoreWeave's transformation from a crypto mining operation to a leading AI infrastructure provider has positioned it well for this acquisition, having secured major customers including Microsoft (MSFT) and OpenAI. The company's Q1 2025 performance showed nearly $1 billion in revenue, though it posted a net loss of $315 million, reflecting the capital-intensive nature of the AI infrastructure sector.
