CoreWeave’s IPO and Its Potential Impact on Core Scientific
While CoreWeave’s initial public offering (IPO) could be beneficial for Core Scientific, it may not be the most significant recent development for the Bitcoin mining firm.
CoreWeave, a leading artificial intelligence (AI) infrastructure provider, filed for its IPO on March 3. The company maintains a strong partnership with Bitcoin (BTC) miner Core Scientific (CORZ), having signed a multi-billion-dollar agreement for Core Scientific to build extensive infrastructure to support CoreWeave’s AI operations. CoreWeave is Core Scientific’s largest client by far, raising questions about how its public debut could impact the mining firm.
“CoreWeave’s IPO is likely to have a direct impact on Core Scientific,” Wolfie Zhao, head of research at TheMinerMag, told CoinDesk. “If CoreWeave’s IPO is successful and the company continues to see strong revenue growth, it will solidify Core Scientific’s role as a key infrastructure provider, ensuring a steady revenue stream from hosting CoreWeave’s GPUs.”
However, Zhao cautioned that if the AI market slows down or demand for high-performance computing declines, Core Scientific could face similar challenges due to its growing reliance on the broader AI industry.
Despite the attention on CoreWeave’s IPO, some analysts believe that its recent $12 billion deal with OpenAI may have a more profound effect on Core Scientific. Investment bank Canaccord Genuity noted in a March 12 report that this deal helps CoreWeave diversify its revenue beyond Microsoft, which currently accounts for about two-thirds of its earnings. Since CoreWeave is Core Scientific’s largest client, this diversification could ultimately benefit the Bitcoin mining firm.
Analysts at H.C. Wainwright, in a March 11 note, dismissed speculation that CoreWeave might abandon its contract with Core Scientific. “From a strategic standpoint, such a move wouldn’t make sense for CoreWeave,” they wrote. The two companies have a long-standing partnership, and Core Scientific continues to expand its infrastructure to meet CoreWeave’s needs.
For its part, Core Scientific’s leadership remains optimistic about CoreWeave’s IPO. “We’re proud to be part of their journey toward becoming a public company and look forward to supporting their continued success,” a company spokesperson told CoinDesk. “Nothing is more rewarding than seeing our customers grow, and we’re excited to continue scaling alongside them as they reach new milestones.”
