Core Scientific (NASDAQ:CORZ), a Bitcoin mining company, saw its shares surge up to 40% in pre-market trading following a significant AI deal with cloud computing firm CoreWeave and a reported buyout offer from the same company.

CoreWeave has reportedly made an all-cash offer to purchase Core Scientific, implying a 55% premium over the miner’s three-month average weighted share price as of May 31, according to Bloomberg, which cited an anonymous source. This offer values the Austin, Texas-based miner at over $1 billion, considering its 178 million outstanding shares. Core Scientific recently emerged from bankruptcy after suffering during a harsh crypto winter.

Neither CoreWeave nor Core Scientific immediately responded to requests for comments on the matter.

In addition to the buyout offer, CoreWeave signed a 12-year deal with Core Scientific to host AI-related services, committing around $300 million in capital investments with options for capacity expansion.

This development follows a trend of increasing mergers and acquisitions in the mining sector. Notably, Riot Platforms (NASDAQ:RIOT) recently made a hostile bid to acquire peer Bitfarms (NASDAQ:BITF).

CoreWeave raised $1.1 billion in new funding in May, with investors including Coatue Management and Magnetar Capital.

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In a notable development, global Bitcoin funds observed substantial net inflows amounting to $148 million last week, as reported by CoinShares. This surge in investments contrasts sharply with short Bitcoin products, which experienced outflows totaling $3.5 million. Additionally, Ethereum funds attracted $33.5 million, marking the second consecutive week of positive inflows following a prolonged period of minimal activity.

CoinShares highlighted this trend as indicative of a shift in investor sentiment towards Ethereum. Notably, Ethereum had endured 10 weeks of outflows totaling $200 million. The renewed interest in Ethereum has also positively impacted Solana, with $5.8 million in inflows recorded amid speculation about potential Solana ETFs and other altcoin products.

While the bulk of these inflows originated from the United States, significant crypto investments were also reported in Canada and Switzerland. Ethereum continues to enjoy strong institutional support in these regions, alongside Bitcoin.

Experts anticipate the debut of Ethereum ETFs as early as July, with projections suggesting they could capture approximately 20% of the demand witnessed by Bitcoin ETFs. Bloomberg ETF analyst Eric Balchunas commented last week that securing 20% of Bitcoin ETF demand would represent an exceptionally successful launch by typical ETF standards.

The surge in inflows into Bitcoin and Ethereum funds underscores the growing investor interest in cryptocurrencies, particularly in anticipation of new investment opportunities such as ETH spot ETFs. As the cryptocurrency market continues to evolve, the introduction of Ethereum ETFs could further enhance accessibility and diversification options for investors, potentially driving further growth and adoption in the crypto space.

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Digital assets firm Galaxy Digital has granted a multimillion-dollar loan to Yat Siu, the co-founder of Animoca Brands, using a unique collateral combination: a tokenized 1708 Stradivarius violin and its corresponding non-fungible token.

Valued at over $9 million, the violin boasts a storied history, including ownership by Russian Empress Catherine the Great. This deal could set a precedent for the tokenization of physical assets, potentially revolutionizing collateralization and opening new investment opportunities for high-value items.

Galaxy Digital’s decision to tokenize the Stradivarius violin, crafted by the esteemed Stradivari family, merges the art world with blockchain technology. The physical violin will be securely stored in Hong Kong, while its digital counterpart facilitates the loan process.

Tokenization involves converting a tangible asset into a digital token tradable on blockchain platforms, offering a novel approach to asset management. Several asset managers are optimistic about the future of tokenization.

A report by 21.co late last year projected that the tokenization market could scale to $3.5 trillion in a bear-case scenario, or up to $10 trillion in a bull case.

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In response to the growing demand for scalable and cost-effective Bitcoin payments, the team behind the Bitcoin layer-2 protocol Ark has established a new company called Ark Labs. This innovative firm aims to develop a faster and more efficient payment system on the Bitcoin blockchain, offering a compelling alternative to the Lightning Network.

Led by creator Burak Keceli, Ark Labs seeks to address the limitations of existing solutions while building upon the foundation laid by Lightning Network. The primary focus of Ark Labs is to provide scalable and low-cost Bitcoin payments, catering to the needs of users worldwide.

The core objectives of Ark Labs include the development of an open implementation of the Ark Protocol and the creation of user-friendly services. The company plans to introduce its first service later this year, aiming to revolutionize the landscape of Bitcoin payments.

Unlike the Lightning Network, which faces challenges such as the “inbound liquidity” problem, Ark Protocol offers a novel approach to off-chain payments. By leveraging service providers who offer 24-hour liquidity services for a fee, Ark eliminates the need for users to commit funds upfront to establish liquidity.

Ark’s off-chain payments utilize a unique unspent transaction output (UTXO) model, employing virtual unspent transaction outputs (VTXOs) to facilitate seamless and secure transactions. This model enables unidirectional, one-time-only payments, enhancing the efficiency and usability of Bitcoin payments.

While Keceli has transitioned to other endeavors, the protocol and Ark Labs remain committed to advancing the goals of improving Bitcoin’s payment infrastructure. With its innovative approach and ambitious objectives, Ark Labs emerges as a formidable contender in the realm of Bitcoin payments, poised to reshape the future of digital transactions.

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Robinhood (NASDAQ:HOOD) imposed buying restrictions on GameStop (NYSE:GME) shares late Sunday after the meme stock’s value surged following speculation that Keith Gill, known as “Roaring Kitty,” might hold a substantial position in the company.

The brokerage stated that Blue Ocean ATS, the platform facilitating overnight trades, would only accept orders within 20% above or below a reference price of $22.99. Thus, orders to buy GME above $27.59 or sell below $18.39 during the night would likely be rejected. Despite this, some Robinhood users reported being completely blocked from purchasing GME overnight.

Robinhood did not respond to Cryptonews’ request for comment by press time.

The trading restriction followed a Reddit post by Keith Gill, aka “Roaring Kitty” on YouTube. The post, Gill’s first since April 21, indicated he bought 5 million GME shares for $115.7 million and invested $65.7 million in call options, betting that GME would reach at least $20 per share by June 21. The screenshot also showed he had accrued over $9.3 million in profits from his GME holdings but sustained a loss of nearly $2.5 million on his call options.

In Robinhood’s overnight markets, GME surged nearly 20% in 20 minutes to reach $27.58 following Gill’s Reddit post. GameStop closed at $23.14 on Friday, May 31, marking a 38.8% increase in shares for the year, seemingly influenced by Gill’s return.

On the same day as his Reddit post, Gill shared a green UNO reverse card on X, adding to a series of cryptic posts and memes since his return in May. The latest post garnered nearly 50,000 likes by early Monday. Gill’s reemergence three weeks ago sparked a significant surge in GameStop shares, doubling their value in May alone. Additionally, Ethereum-based meme coins, including one named GME, showed renewed optimism with the reappearance of Roaring Kitty guiding the next bullish phase.

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