Trip Miller, founder of Memphis-based investment firm Gullane Capital Partners, is betting big on Core Scientific’s future in the AI data center market after successfully blocking a controversial acquisition. Miller, a major shareholder who helped derail CoreWeave’s $9 billion buyout attempt in October 2024, predicts the company will announce over 100 megawatts of new AI computing deals within 90 days and potentially 400 megawatts throughout 2025.
The CoreWeave acquisition, originally valued at $9 billion when announced in July 2024, plummeted to nearly half that value as CoreWeave’s stock declined. Shareholders rejected the deal on October 30, 2024, citing concerns over weakened economics. Miller’s projections are based on conversations with knowledgeable industry sources and reflect the surging demand for AI computing infrastructure.
Core Scientific currently operates approximately 1 gigawatt of data center capacity with another 1.5 gigawatts of power available for expansion, according to an October investor presentation. The company’s only current data center customer is CoreWeave, to whom it leases 590 megawatts worth roughly $10 billion in revenue over 12 years. Miller expects upcoming deals will diversify Core Scientific’s customer base beyond CoreWeave.
The story highlights a broader industry transformation as former cryptocurrency mining companies pivot to AI infrastructure. Both Core Scientific and CoreWeave originated as crypto mining operations before repositioning for the AI boom. Morgan Stanley research projects a staggering 47 gigawatt electricity shortfall for data centers nationally by 2028—nearly 10 times New York City’s average daily energy consumption.
Industry analysts predict approximately 60% of crypto mining capacity (12 gigawatts) will convert to AI and high-performance computing within three years. Recent examples include Cipher Mining’s 168-megawatt Colorado facility leased to Fluidstack, Iren’s $9.7 billion deal with Microsoft, and Hut 8’s 245-megawatt Louisiana development. Paul Golding, a Macquarie analyst, set a $34 price target for Core Scientific stock—more than double its current trading price—based on the company’s ability to capitalize on constrained power markets.
Key Quotes
I think over the next 90 days, you’ll see them announce greater than a hundred megawatts of deals. It would show that there was a lot more value to be tapped there than we were getting paid for under the CoreWeave deal.
Trip Miller, founder of Gullane Capital Partners and major Core Scientific shareholder, explaining his rationale for blocking the CoreWeave acquisition and his expectations for near-term growth that will validate his decision.
We are in a situation where we’re likely to be systematically short compute—where the demand for compute will outstrip the supply.
Stephen Byrd, Morgan Stanley’s global head of thematic research and sustainability research, describing the fundamental supply-demand imbalance driving value in the AI infrastructure sector.
Our view is that crypto miners, by and large, are likely to pivot for the most part to delivering high-performance compute infrastructure solutions and services.
Paul Golding, Macquarie analyst covering crypto mining, explaining the industry-wide transformation as mining companies leverage existing power infrastructure to capture AI computing opportunities.
Our Take
Miller’s aggressive stance reveals a sophisticated bet on AI infrastructure scarcity economics. By blocking the CoreWeave deal, he’s wagering that Core Scientific’s power access and expansion capacity are worth significantly more than the acquisition price reflected. The Morgan Stanley projection of a 47-gigawatt shortfall validates this thesis—companies controlling power infrastructure hold increasingly strategic assets.
The crypto-to-AI pivot represents one of the most dramatic industry transformations in recent memory, with former Bitcoin miners now commanding premium valuations as AI infrastructure providers. This shift demonstrates how quickly capital reallocates when fundamental demand drivers change. Core Scientific’s ability to secure new customers beyond CoreWeave will be the critical test of Miller’s thesis and could establish a valuation benchmark for similar operators navigating the AI infrastructure gold rush.
Why This Matters
This story illuminates critical dynamics shaping the AI infrastructure boom and reveals how energy constraints are becoming the primary bottleneck for AI expansion. The rejected CoreWeave acquisition and Miller’s bullish predictions demonstrate that data center operators with secured power access are increasingly valuable assets in an energy-starved market.
The systematic transformation of cryptocurrency mining operations into AI computing facilities represents a significant industry realignment, with Morgan Stanley projecting a 47-gigawatt power shortfall by 2028. This scarcity creates enormous value for companies like Core Scientific that control both data center capacity and power infrastructure.
For businesses and investors, this signals that AI infrastructure investments may offer substantial returns, particularly for operators with expansion runway. The story also validates concerns that AI growth faces physical infrastructure limitations rather than just technological challenges. As demand for AI computing continues accelerating, companies controlling scarce power resources will likely command premium valuations, reshaping competitive dynamics across the technology sector.