CoreWeave Buys Core Scientific: What It Means for Crypto Miners
Artificial intelligence company CoreWeave just bought Bitcoin miner Core Scientific for $9 billion. This deal shows how the race for AI power is changing the crypto world. Core Scientific, once focused on mining Bitcoin, will now help power AI projects across America. This shift affects everyone in crypto, especially miners looking for new opportunities.
CoreWeave paid entirely in stock, giving Core Scientific shareholders a 66% premium over recent prices. That means for every share of Core Scientific stock, owners get 0.1235 shares of CoreWeave. The deal values Core Scientific at about $20.40 per share, much higher than its $12.30 closing price before news of the deal came out. Once the deal closes later this year, Core Scientific shareholders will own less than 10% of the combined company.
Why This Deal Matters for Crypto
Core Scientific was one of North America's biggest Bitcoin mining operations. They still earned 89% of their money from crypto mining earlier this year. But now, their 1.3 gigawatts of power—enough to run nearly a million homes—will shift toward AI work. This power could have been used for Bitcoin mining but will now train AI models instead.
The move highlights a big trend: Bitcoin miners are changing their business to survive. Many are using their power and data centers for artificial intelligence work, which often pays better than crypto mining. Bernstein analyst Gautam Chhugani explained this deal "sets the bar for bitcoin miners looking to pivot to AI." Power remains the biggest limit for AI growth, and Core Scientific had plenty of it.
From Crypto Roots to AI Future
Both companies actually started in crypto. CoreWeave began as an Ethereum miner back in 2017 before switching to AI after Ethereum's big 2022 upgrade ended profitable mining. Core Scientific itself went through bankruptcy in 2022 when crypto prices crashed before bouncing back last year. They've been slowly moving toward AI work, signing big contracts with CoreWeave to provide power for artificial intelligence projects.
CoreWeave CEO Michael Intrator said this purchase "accelerates our strategy to deploy AI workloads at scale." By owning Core Scientific's data centers instead of renting them, CoreWeave saves over $10 billion in future rent payments. That money can now go toward building even more AI capacity.
What Happens to Bitcoin Mining?
Core Scientific still mines Bitcoin today, but that might not last. CoreWeave clearly stated it sees "potential to repurpose these assets toward high-performance computing or divest the crypto mining business." This means Bitcoin mining at Core Scientific locations could be reduced or stopped completely over time.
This deal comes during a wave of mergers in the AI industry. Companies spent over $55 billion buying AI startups just this year. CoreWeave itself tried to buy Core Scientific last year for only $1 billion, but got turned down. Core Scientific's much higher value now shows how hot the market for data center power has become.
The Big Picture for Crypto Miners
With Core Scientific moving away from Bitcoin, other miners face a choice: find new ways to use their power or risk being left behind. Companies with good locations and power contracts could become attractive partners for AI firms needing computing power.
For the crypto market, this deal shows that traditional mining alone might not be enough anymore. Miners need to think about how their power and technology can serve multiple purposes, including artificial intelligence. As CoreWeave and Core Scientific prove, the future belongs to companies that can power both crypto and the next generation of AI.
