Core Scientific's CEO, Adam Sullivan, said that since announcing the CoreWeave AI infrastructure deal, the company has received several approaches from top-tier private equity firms for financing and partnerships.
This is where bitcoin miners and their data centers are becoming a lucrative option for investors, said Adam Sullivan, the CEO of one of the largest mining firms, Core Scientific , in an exclusive interview with CoinDesk. One of the main reasons private equity is interested in the mining sector now is the recent bitcoin halving, which cut the bitcoin rewards in half, making it more competitive for the miners. Many miners are struggling to keep their businesses profitable, and some are looking to either sell the company or diversify their revenue sources by repurposing their data centers to host HCP and AI-related computing machines.
"Many of these Bitcoin mining companies are struggling right now to build their bitcoin mining facilities, and these private equity firms are looking at potential returns, looking at ways that they can grab economic value out of some of these potential conversions ," noted Sullivan.
However, before miners can make it to the next halving, they must survive the one that just happened this year. The overcrowded mining space is now feeling pressure from the margin squeeze, resulting in a flurry of acquisitions and renewed deal-making talks among the miners.a $5.75 per share takeover offer from CoreWeave the same day it signed the 200MW deal, saying it significantly undervalued the firm.