It wasn’t enough to stop Core Scientific’s stock price from soaring by 35% on Thursday. This phenomenal pump came on the heels of news of potential buyout negotiations with CoreWeave. Such a big move in shares caused a temporary trading halt, as the market digested the implications of this surprise news. As of writing, Core Scientific has a market capitalization of almost $5 billion. That’s an extraordinary rebound, especially considering the Philadelphia-based company just emerged from bankruptcy in January of 2016.
This week’s increase was the company’s largest single-day jump since going public in 2019. That’s only a little less than the jaw-dropping 40% spike that we experienced last June. You see, Core Scientific has very aggressively recalibrated itself as an artificial intelligence infrastructure company. This shift has taken on a critical role in its business strategy since emerging from bankruptcy. The company has strategically converted a substantial portion of its mining capacity to host high-performance compute workloads, aligning with current technological demands.
In fact CoreScientific never gave up their core strategic partnership show of force with CoreWeave for more than 12 years. This cross-partisan collaboration will bring in or leverage more than $10.2 billion in revenue commitments over the term. It will provide just 590 megawatts worth of infrastructure by early 2026. The importance of the relationship with CoreWeave Our initial relationship with CoreWeave formed the foundation of our turnaround story. It’s a testament to the far greater heights and innovation still possible in their partnership.
Even Adam Sullivan, CEO of Core Scientific, has gone on record to tout the no-brainer nature of this partnership. The prospect of a buyout further entrenches this controversial partnership, which already extends hundreds of miles and includes at least $2 billion in contracted commitments. CoreWeave isn’t the only company trying to buy Core Scientific’s assets. This is not their first attempt; a previous proposal was turned down last year.
After successfully completing a reorganization, Core Scientific returned to the Nasdaq in January 2024, marking a new chapter in its corporate journey. The company has retrenched and redoubled its efforts on AI infrastructure, giving the company a leg up in a thickly competitive future. A possible CoreWeave acquisition would greatly increase its capabilities and grow its market presence.