Long time in the making - why good for Miners (Patreon)

$9 billion deal where CoreWeave, a company that provides cloud computing services, is buying Core Scientific, a big name in cryptocurrency mining and managing data centers.

Here’s what’s going on:

• What’s Happening: CoreWeave will get access to more than 1 gigawatt (a huge amount) of data-center space across the U.S., which will help them handle big AI projects and other heavy computing tasks.

• The deal should wrap up by the end of 2025 (Q4) and is expected to save CoreWeave $500 million per year by 2027.

• Stock Changes: After the news came out, CoreWeave’s stock price went down a little (3.4%), but Core Scientific’s stock price jumped (17%) but is mean reverting today.

Why Good for Miners

Miners, especially those working with cryptocurrencies like Bitcoin, are thrilled about this because it’s all those that pivoted to HPC could benefit. Power -hungry crypto mining meets even more power hungry AI

New Money Opportunities: Miners might be able to rent out or sell some of their extra space to companies like CoreWeave, giving them new ways to make money besides mining crypto. eg IREN