Core Scientific, Bitcoin Miners Tumble on CoreWeave Buyout; Jefferies Says Price in Expected Range

CoreWeave, a prominent AI infrastructure firm, has announced its acquisition of Core Scientific, a bitcoin mining company, in an all-stock transaction valued at approximately $9 billion. This deal, expected to close in the fourth quarter of 2025, offers Core Scientific shareholders $20.40 per share, a price point near the midpoint of Jefferies’ previously estimated $16–$23 per share range.

Market reaction to the news was mixed. While Core Scientific’s share price dropped by 22%, trading at around $14 at the time of publication, other bitcoin mining companies like HUT 8 and Cleanspark also experienced declines exceeding 7%. Conversely, IREN, a similarly positioned miner, saw a 3% increase, and CoreWeave shares dipped by 3.3%.

Jefferies analysts had previously highlighted CoreWeave’s robust post-IPO share performance, suggesting its advantageous position for substantial mergers and acquisitions. They view this acquisition as a strategic move towards vertical integration, enabling CoreWeave to reduce dependence on long-term leases and third-party developers. By leveraging its relatively low cost of equity, CoreWeave can replace these lease obligations and assume direct control of its data center assets.

This transaction underscores the accelerating consolidation within the AI infrastructure and high-performance computing (HPC) sectors, reflecting the drive among vertically integrated providers to achieve scale and operational control. The acquisition transforms CoreWeave’s role from a mere compute supplier to a comprehensive full-stack infrastructure operator—a crucial strategic position given the rapidly escalating demand from AI firms and cloud-native enterprises.

Core Scientific’s data center capacity and platform are key components of this acquisition, enabling CoreWeave to expand its owned infrastructure and gain better control over future capacity expansion. Analysts speculate that CoreWeave might be preemptively securing this space before Core Scientific finalizes new leasing agreements with hyperscalers. Jefferies maintains a buy rating on Core Scientific shares, with an $18 price target. The deal signals a significant shift in the landscape of AI infrastructure and resource management.