Core Scientific Shareholders Reject $9 Billion CoreWeave Acquisition
Core Scientific shareholders have voted against a proposed $9 billion acquisition by CoreWeave, a cloud provider specializing in AI infrastructure. The rejection follows investor concerns that the offer significantly undervalued the Bitcoin mining and data center firm, while also exposing shareholders to undue market fluctuations associated with CoreWeave’s stock.
Investors Cite Undervaluation Concerns
The shareholder vote, held on Thursday, failed to secure the necessary approval for the merger to proceed. Several investors publicly voiced apprehension over the exchange ratio of 0.1235 CoreWeave Class A shares for each Core Scientific share, arguing that it didn’t accurately reflect Core Scientific’s intrinsic value and future growth potential. There were also fears surrounding the inherent volatility of being tied to CoreWeave’s stock performance. While the merger is now off the table, both companies have affirmed their commitment to maintaining their existing commercial partnership. Core Scientific will release the official voting results in a filing with the Securities and Exchange Commission (SEC) on Friday.
Despite the failed acquisition, the ongoing commercial partnership between Core Scientific and CoreWeave suggests continued collaboration in the Bitcoin mining and AI infrastructure spaces, indicating a potentially bright future for both firms.
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