CoreWeave Backs Away from Core Scientific Deal — Bullish Case Wavers[Stocks](https://moneymorning.com/category/article/stocks/) # CoreWeave Backs Away from Core Scientific Deal — Bullish Case Wavers  by Chris Johnson  October 21, 2025  Share it: ## CoreWeave (CRWV) Backs Away from Core Scientific Deal — Is the Bull Still Intact? Shares of CoreWeave ( [CRWV](https://moneymorning.com/stocks/crwv)) are trading in a tight range ahead of the company’s next earnings release, as investors digest the company’s decision to walk away from its previously rumored acquisition of bitcoin mining firm Core Scientific. The move comes amid rising scrutiny of CoreWeave’s aggressive expansion model, which has been fueled by heavy borrowing. As of June 2025, the AI infrastructure leader carried $14.56 billion in total debt, with a debt-to-equity ratio of 289.3%. The company’s $11.1 billion debt stack against just $3.8 billion in equity has raised flags among analysts, especially as CoreWeave remains unprofitable. Yahoo Finance recently noted that this level of leverage “carries increased risk for a loss-making company.” That pressure may have contributed to management’s decision to cool off its appetite for acquisitions. The Core Scientific bid now looks unlikely to move forward, and the market’s reaction suggests that may be a good thing. ## IPO to Overbought: A “Punchy” Stock in the AI Trade CoreWeave’s April IPO was met with intense enthusiasm, sending shares up more than 400% at their peak on the back of surging demand for AI-driven cloud infrastructure and specialized data centers. Since then, the stock has traded between $100 and $175, with volatility driven by deal headlines with NVIDIA, insider activity, and macro positioning in the AI sector. One key catalyst came in mid-September when executives from OpenAI and Nvidia (NVDA) were linked to a major UK data center expansion tied to CoreWeave. That headline triggered three analyst upgrades and sparked a rally from $90 to $130. Notably, that spike also coincided with a 10% owner selling over $274 million worth of stock at prices between $119.93 and $122.42, a signal that some early investors may be cashing in amid the company’s aggressive positioning. ## CoreWeave’s Technical Analysis Technicals: 50-Day Turns Bullish, But Momentum is Cooling as the stock’s 20-day moving average - the “Trader’s Trendline” – has rolled over to add resistance to the price. From a technical perspective, CoreWeave shares are stuck in a consolidation zone following short-term overbought readings in the RSI. The 50-day moving average just turned bullish last week - the first time since June - and now sits at $134.26, providing near-term support. However, the 20-day moving average is rolling over, suggesting that momentum is fading short-term. This keeps the stock in a choppy range until the company’s next earnings report, scheduled for November 11.  ## Bottom Line: High Debt = High Volatility CoreWeave remains one of the most volatile names in the AI trade, and that’s unlikely to change. Investor concerns around the company’s debt-fueled growth strategy are justified, and the pullback from the Core Scientific acquisition shows that management may finally be listening. For now, support at the 50-day moving average (~$134) will be the key line in the sand. If it holds, bulls may get another upside breakout as earnings approach. But traders should be prepared for even more volatility in the coming weeks - especially after the sharp reversal in response to last quarter’s results. **Beat the market, without relying on brokers or biased institutions.** Email(Required) X/Twitter This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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