Core Scientific Plummets 17% After $9B CoreWeave Deal—What’s Really Going On?

Mining giant Core Scientific just took a nosedive—despite inking a $9 billion deal with AI cloud player CoreWeave. Here's why the market's giving this 'mega-partnership' the side-eye.

The headline vs. the balance sheet

On paper, a $9B collaboration should send stocks soaring. Instead, Core Scientific shares cratered 17% post-announcement. Traders clearly aren't buying the hype—literally.

Follow the money (or lack thereof)

Deal terms remain suspiciously vague. Is this cash? Stock? Promissory notes written on a napkin? Wall Street hates uncertainty almost as much as it loves overpriced SaaS valuations.

The crypto-mining elephant in the room

CoreWeave's betting big on AI—but Core Scientific's bread and butter remains volatile Bitcoin mining. That's a tough pivot to sell when your 'strategic partner' could replace your entire business with a GPU cluster.

Another day, another 'transformative' tech deal that somehow leaves shareholders poorer. Maybe next time try announcing actual revenue?

The acquisition had been rumored since June 26, and that initial report sent Core Scientific’s stock (ticker: CORZ) surging nearly 30% in a single day. It climbed another 20% in the days that followed. But with Monday’s confirmation, the sentiment flipped.

Analysts at Bernstein, led by Gautam Chhugani, noted that investor enthusiasm may have been dampened by the all-stock structure and the lack of any price protection in the agreement. The market was probably expecting a higher valuation, Bernstein wrote in a note to clients, adding that the absence of safeguards ahead of a Q4 closure leaves room for uncertainty, especially if CoreWeave’s stock sees volatility before the deal is completed.

CoreWeave, which specializes in AI infrastructure, already had a major 12-year, $10 billion hosting deal with CORE Scientific. With this acquisition, it wipes that liability off its books and gains full control of Core Scientific’s power and data center infrastructure, giving it more flexibility and efficiency in scaling AI workloads.

The move also underscores a broader shift in how investors are starting to value Bitcoin miners that can pivot toward AI. Bernstein said there’s likely to be a “re-rating” for companies that can demonstrate AI-readiness, specifically those with large power capacity, working AI or HPC deployments, and clean balance sheets free of legacy debt.

Miners like Iris Energy (IREN) and Riot Platforms have already started exploring this shift. IREN, in particular, just hit the 50 EH/s hash rate milestone, joining the ranks of Marathon Digital and CleanSpark.

Core Scientific, once one of the most prominent names in crypto mining, had a turbulent run after going public through a SPAC in early 2022. By the end of that year, it was forced to file for Chapter 11 bankruptcy. The company restructured and re-listed on Nasdaq in 2024, and its AI pivot has since revived interest among investors.

Interestingly, CoreWeave tried to acquire the company last year for just $1 billion. The fact that the new deal is now worth nine times as much shows how rapidly the value of AI-ready infrastructure has grown.

Also Read: Robinhood Stock Drops as OpenAI Denies Links to Equity Token