In the last week of June, a significant development in the block reward mining sector captured global attention: CoreWeave, a United States-based artificial intelligence (AI) and cloud infrastructure provider, is reportedly in advanced talks to acquire Core Scientific (NASDAQ: CORZ), a leading BTC mining and high-performance computing (HPC) firm.
Announced on June 26, this move follows CoreWeave’s rejected $1 billion bid in 2024 and highlights the evolving intersection of BTC mining and AI infrastructure. The negotiations, which could value Core Scientific at $4-$5 billion, reflect broader industry trends toward diversification, driven by rising BTC mining costs, regulatory pressures, and the growing demand for AI-driven computing power. However, the deal also raises concerns about financial risks and market volatility, underscoring the complex dynamics shaping the future of block reward mining.
CoreWeave’s interest in Core Scientific stems from strategic synergies. Core Scientific, one of North America’s largest BTC mining and hosting providers, has pivoted aggressively toward AI infrastructure since exiting bankruptcy in January 2024. Its 590 megawatt (MW) of data center capacity, much of which supports CoreWeave’s Nvidia (NASDAQ: NVDA) GPU-based AI workloads through a 12-year, $10.2 billion contract signed in June 2024, makes it a critical asset.
CoreWeave, valued at $76.56 billion post its March 2025 initial public offering (IPO), relies on leasing data center space to power clients like Microsoft (NASDAQ: MSFT) (62% of its 2024 revenue), Meta (NASDAQ: META), and OpenAI.
Acquiring Core Scientific would enable vertical integration, allowing CoreWeave to own its infrastructure, reduce leasing costs (currently $850 million annually to Core Scientific), and compete with giants like Amazon Web Services (AWS) (NASDAQ: AMZN) and Google Cloud (NASDAQ: GOOGL). Analysts, such as Jefferies’ Jonathan Petersen, estimate a buyout price of $16-$23 per share, with Cantor Fitzgerald projecting over $30 and Roth Capital up to $38 in an all-stock deal, a significant jump from CoreWeave’s 2024 offer of $5.75 per share.
The BTC mining landscape provides context for this shift. The April 2024 BTC halving reduced block rewards to 3.125 BTC, and network difficulty hit 126.98 trillion in May 2025, driving mining costs to an estimated $70,000 per BTC. Core Scientific’s Q1 2025 revenue fell 55.6% year-on-year to $79.53 million, with $67.2 million from self-mining, reflecting the halving’s impact.
Meanwhile, its $580 million net income highlights its pivot to AI, leveraging existing infrastructure for HPC workloads. This aligns with global trends, as miners like Hut 8 (NASDAQ: HUT) and IREN (NASDAQ: IREN) also diversify into AI to offset declining BTC mining margins.
CoreWeave, a former crypto miner, sees Core Scientific’s 570 MW capacity as a scalable platform to meet surging AI demand, a trend underscored by posts on X describing the deal as a “paradigm shift” for AI and mining convergence.
However, the potential acquisition carries risks. CoreWeave’s $11.9 billion debt pile raises concerns about financing, with analysts like D.A. Davidson’s Gil Luria suggesting an all-stock deal to avoid further debt or shareholder dilution. Core Scientific’s stock surged 35% on June 26, pushing its market cap to nearly $5 billion, but CoreWeave’s shares dipped 1-1.5%, reflecting investor fears of overpaying.
The deal’s high valuation—potentially 40% above Core Scientific’s $16.36 share price as of June 19—could strain CoreWeave’s balance sheet, especially given its reliance on Nvidia (NASDAQ: NVDA) GPUs and competition from Nvidia’s cloud computing push. Regulatory hurdles, including scrutiny over energy-intensive data centers and volatility in AI demand, further complicate execution. Posts on X noted mixed investor sentiment, with CoreWeave’s high valuation post-IPO (up 325% YTD) raising concerns about sustainability.
Globally, the deal reflects broader block reward mining challenges. Norway’s June 28 proposal to ban new mining data centers due to energy concerns and Russia’s crackdown on illegal BTC mining (e.g., a June 27 seizure in Buryatia) highlight regulatory pressures.
Meanwhile, firms like ZA Miner and CRYPTO MINING FIRM are adopting AI-driven cloud mining to reduce energy costs and hardware barriers, a trend Core Scientific mirrors by repurposing mining infrastructure for AI. However, centralized AI infrastructure risks outages or cyberattacks, and high acquisition costs could limit profitability if BTC prices or AI demand falter. Traditional mining offers more control over assets, potentially appealing to firms avoiding third-party dependencies.
CoreWeave’s pursuit of Core Scientific underscores the block reward mining industry’s pivot toward AI infrastructure amid declining BTC mining profitability and rising energy costs. While the deal could create a powerhouse in digital infrastructure, its financial and regulatory risks highlight the challenges of navigating this evolving landscape.
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Source: https://coingeek.com/coreweave-signals-shift-in-mining-dynamics-under-new-talks/