07.07.2025 20:13

CoreWeave, a prominent artificial intelligence hyperscaler backed by Nvidia, announced a significant acquisition on Monday, sending ripples through the cryptocurrency mining sector. The all-stock deal, valued at approximately $9 billion, will see CoreWeave acquire Core Scientific, a major Bitcoin miner and data center infrastructure provider. This unexpected merger immediately impacted the market.

This substantial acquisition, causing significant market volatility, resulted in a considerable drop in the value of several publicly traded Bitcoin mining stocks. Shares of Core Scientific (CORZ) plunged by nearly 20%, triggering a domino effect that saw other companies, including MARA Holdings, Riot Platforms, CleanSpark, and Cipher Mining (CIFR), experience a 5-10% decline in their stock prices. The immediate market reaction reflected investor uncertainty regarding the deal's short-term financial implications.

The all-stock nature of the transaction exacerbated the negative market response. Any decrease in CoreWeave's (CRWV) stock price directly diminishes the perceived value of the acquisition for Core Scientific shareholders, potentially encouraging further selling pressure. Despite a recent rally, Core Scientific's stock price, at $15.14, showed a 16% decrease, fluctuating between $13.65 and $15.94 during the 24-hour period. Similarly, CoreWeave’s stock experienced a downturn, trading at $160.73, down 2.60% from its 24-hour high of $163.66.

However, CoreWeave's CEO, Michael Intrator, defended the merger, highlighting the projected long-term benefits. He asserted that the acquisition would eliminate a substantial $10 billion in future lease obligations for Core Scientific, leading to considerably improved operational efficiency. While the long-term implications remain to be seen, the immediate market reaction underscored the significant impact of this major consolidation within the Bitcoin mining industry. The drop in stocks like MARA Holdings (MARA), which experienced a more than 6% decline, demonstrates the widespread consequences of this unexpected corporate development.