Crypto Carnage! AI Bubble Bursts Before IPO?!

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Right, so here’s the gist:

  • Apparently, CoreWeave, bless their cotton socks, is having a bit of a rethink about this whole IPO shebang. Semafor spilled the beans.
  • This AI infrastructure whatsit, practically joined at the hip with bitcoin miner Core Scientific, raked in a cool $1.9 billion last year. Not bad for a Tuesday, eh?
  • Turns out, everyone’s got a case of the jitters about AI spending and these pesky tech stocks. Could be why they’re scaling back the party 🎉.

CoreWeave, in a move that can only be described as ‘slightly awkward,’ is reportedly shrinking its initial public offering faster than you can say “market correction”. All this, mind you, just a day before they were supposed to strut their stuff. Classic 🤦.

Word on the street (via Semafor) was they were aiming for $3 billion with a $30 billion valuation. Now? They’re hoping for a slightly less eye-watering $23 billion valuation. That’s a few yachts short of a marina, isn’t it?

Bloomberg, never one to be left out, chimed in to say CoreWeave is now only looking to snag a measly $1.5 billion. Honestly, it’s enough to make a billionaire weep 😭.

CoreWeave, you see, is best buddies with Core Scientific (CORZ), the bitcoin mining magnates. Core Scientific was probably envisioning champagne showers if this IPO went swimmingly and they kept the revenue train chugging along. One can dream ✨.

In the early hours of U.S. trading, CORZ is inching upwards, but has taken a tumble over the past month and is not looking good for 2025. AI-related tokens NEAR, ICP, and RENDER have also added to recent losses. Blimey 📉.

CoreWeave did manage to pull in $1.9 billion in 2024, thanks to everyone and their dog wanting AI services. However, some folks reckon CoreWeave’s shiny new $12 billion deal with AI behemoth OpenAI is a bigger deal than this whole IPO malarkey. Go figure 🤔.

This whole CoreWeave pullback is happening because tech stocks have been lagging behind other sectors since January, partly thanks to Donald Trump’s on-again, off-again tariff tango and general worries about AI spending. Honestly, could this get any more dramatic 🙄?

CoreWeave is still scheduled to make its grand debut on the Nasdaq this Friday, becoming the first AI company to brave the stock market waters. A representative from the company, when reached for comment, was probably busy hiding under their desk 🙈.

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2025-03-27 17:07