Shareholders Slam Brakes on CoreWeave-Core Scientific Merger Deal

Another crypto merger bites the dust as shareholders reject CoreWeave's stock swap proposal with Core Scientific.

Investor Rebellion

Shareholders delivered a stunning blow to the proposed merger, voting down the stock swap deal that would have combined the two crypto infrastructure players. The rejection signals growing investor skepticism about consolidation plays in the digital asset space.

Market Consequences

The failed merger leaves both companies navigating uncertain futures independently. Core Scientific, once a mining powerhouse, now faces renewed questions about its strategic direction without CoreWeave's proposed lifeline.

Wall Street's crypto romance continues hitting reality checks—turns out shareholders actually read the fine print before rubber-stamping deals.

CORZ trades at a five-year high

Following the news of the failed merger, CORZ shares extended their recovery to trade at over $23. CORZ has been on an upward trajectory since April, rising from local lows of $6.44.

The share price ROSE despite the recently reported drop in revenues. Despite this, Core Scientific has been optimistic for its future prospects, signaling a new large colocation client, which will be reflected in Q4 earnings. 

The shares of CoreWeave reacted with a price drop, losing 5.47% to $132.28. CRWV is still close to its highest range for the past few months, as AI infrastructure and cloud services met increasing demand. 

Will Core Scientific thrive without a big buyer? 

Core Scientific has mostly viewed CoreWeave’s offer as too low, undervaluing the company. Previously, CoreWeave attempted an acquisition for $1B, which was also rejected for low-balling the company. 

Core Scientific still sought out integration with a larger company after coming out of a bankruptcy and reorganization in early 2024. Core Scientific was previously one of the largest miners, and still produces coins, though rewards diminished in Q3. 

Some of the CORZ shareholders believed the company was better off independent. Two Seas Capital and Institutional Shareholders Services (ISS) actively lobbied for a “No” vote on the merger. 

On its side, CoreWeave announced it WOULD not increase its offer, despite the shareholder opposition. Core Scientific will skip out on AI integration and will have to find new areas of expansion.

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