Core Scientific's stock experienced a significant surge on Thursday, June 26, 2025, following reports that CoreWeave is again considering acquiring the data center infrastructure company. The renewed interest from CoreWeave comes after Core Scientific rejected a previous offer last year, and it reflects the company's substantial growth and strategic shift towards AI infrastructure.
The Wall Street Journal reported that the acquisition talks are underway and could potentially lead to a final agreement in the coming weeks, assuming no unexpected obstacles arise. However, the financial specifics of the potential deal have not yet been disclosed.
The news of the revived buyout discussions triggered a rally in Core Scientific's stock, with shares soaring over 20% in early afternoon trading. This surge prompted a temporary halt in trading due to the rapid price increase. As of today, Core Scientific holds a market capitalization of approximately $3.6 billion.
CoreWeave's initial attempt to acquire Core Scientific occurred last year, with an offer of $5.75 per share, valuing the company at around $1 billion. Core Scientific turned down the offer, believing that the valuation was too low. Instead, the company chose to strengthen its existing partnership with CoreWeave, which included a $1.225 billion agreement to bolster infrastructure support for Nvidia GPUs. This decision appears to have been beneficial for Core Scientific, as its stock is now trading at nearly three times the original bid price.
CoreWeave, a company that transitioned from cryptocurrency mining to AI infrastructure provision, has witnessed remarkable growth, with its stock increasing by nearly 300% this year. This surge has elevated CoreWeave's market capitalization to $78.4 billion.
Core Scientific's financial performance has also seen significant improvement. The company's first-quarter earnings more than doubled, with net income reaching $580 million. However, revenue fell short of analyst expectations at $79.5 million, with $67.2 million derived from self-mining. The company attributed the revenue and mining declines to the Bitcoin network's quadrennial halving in April 2024, which reduced mining rewards from 6.25 BTC to 3.125 BTC. Despite these challenges, Core Scientific remains a significant player in the cryptocurrency space, recognized as the 30th largest corporate Bitcoin holder, possessing 977 BTC.
Analysts have noted Core Scientific's strategic pivot towards becoming a premier provider of AI infrastructure, leveraging its existing infrastructure and expertise in high-density computing. This shift aligns with the increasing demand for AI hyperscalers and could position Core Scientific for further growth in the coming years. Needham recently increased the price target on Core Scientific's shares to $18 from $16, while maintaining a 'Buy' rating, citing the strong demand backdrop in the AI hyperscaler market. However, Bank of America (BofA) recently downgraded CoreWeave from 'Buy' to 'Neutral' due to concerns that much of the near-term upside has already been priced in.
The potential acquisition of Core Scientific by CoreWeave could significantly reshape the AI infrastructure market. As the landscape of cryptocurrency mining evolves, Core Scientific's strategic decisions and partnerships will continue to shape its trajectory in the sector.
