The Hook – A Bold Move from Mining to AI Domination
Imagine making a huge bet on something, then the game changes completely. Instead of giving up, you pivot—and that pivot makes you billions. That’s exactly what CoreWeave did. Once an Ethereum mining company, CoreWeave is now a giant in artificial intelligence (AI) infrastructure, serving tech giants like Microsoft and Meta. And now, they’re about to go public with a massive $4 billion IPO, aiming for a valuation of $35 billion.
This shift from crypto mining to AI hyperscaling is one of the biggest transformations in tech right now. But how did they pull this off? And why should you care?
Step 1: Ethereum Mining Days – The Rise and Fall
Before Ethereum switched to proof-of-stake (PoS) in 2022 (an event called The Merge), CoreWeave was making serious money from mining Ethereum. In fact, mining made up 61% of their revenue at the time. But The Merge killed Ethereum mining, forcing companies like CoreWeave to find new ways to stay relevant.
Key Words to Remember:
- Proof-of-Work (PoW) – The old mining system that Ethereum abandoned
- Proof-of-Stake (PoS) – The new system that made mining Ethereum obsolete
- The Merge – The event in 2022 that changed Ethereum forever
Step 2: The AI Pivot – Betting Big on the Future
CoreWeave didn’t just survive; they reinvented themselves. Instead of mining, they focused on AI cloud computing, renting out their powerful GPUs (mostly from Nvidia) to companies needing heavy computing power. This shift happened at exactly the right time—just as AI demand exploded with the rise of ChatGPT and other AI models.
The result? Their revenue jumped from $15.8 million to $1.9 billion in just two years! That’s a 12,000% increase—an insane leap for any company.
Why This Matters:
- AI is expected to add $20 trillion to the global economy by 2030.
- Companies that provide the infrastructure (like CoreWeave) will be the real winners.
- Nvidia’s GPUs are the most valuable hardware in AI, and CoreWeave is a major customer.
Step 3: The IPO – CoreWeave Goes Public
Now, CoreWeave is taking the next big step: an Initial Public Offering (IPO). They plan to raise $4 billion by selling shares on the Nasdaq stock exchange under the ticker CRWV. Big banks like Morgan Stanley, JPMorgan, and Goldman Sachs are backing the IPO, meaning Wall Street is taking this company seriously.
The money raised will be used for:
✔ Expanding their AI infrastructure
✔ Paying off debt
✔ Buying out competitors
If this IPO is successful, it could be one of the biggest stock market launches in recent years.
Step 4: Crypto Isn’t Completely Gone – A Smart Play with Bitcoin
Even though CoreWeave left Ethereum mining, it hasn’t totally abandoned crypto. In June 2024, they signed a 12-year deal with Bitcoin miner Core Scientific to use their massive power infrastructure for AI computing. This deal alone is worth $10.2 billion over time.
Key Takeaway: CoreWeave used to mine Ethereum, but now they’re using Bitcoin miners’ power capacity to fuel their AI business—turning old crypto infrastructure into a goldmine for AI.
Why This is Important for You
If you’re serious about understanding crypto and tech, CoreWeave’s story is a massive lesson in:
✔ Adapting to Change – They didn’t die after The Merge; they evolved.
✔ The Power of AI – AI is becoming bigger than crypto, and companies providing infrastructure are making billions.
✔ The Connection Between Crypto and AI – Even though CoreWeave moved into AI, it’s still tied to the crypto world through Bitcoin miners and high-performance computing.
This IPO will be a major event in tech and finance. If CoreWeave succeeds, it proves that AI infrastructure is the next trillion-dollar industry—and that smart companies can turn a dying business into a multi-billion-dollar empire.
