Quick Takeaways:
- Core Scientific shareholders reject $9 billion all-stock merger with CoreWeave.
- The move follows investor backlash over valuation and governance concerns.
- Bitcoin miners’ AI-ready infrastructure is emerging as a high-value asset class.
Core Scientific Shareholders Reject $9B CoreWeave Merger
Core Scientific (CORZ) shareholders have voted to reject the proposed $9 billion merger with CoreWeave (CRWV), marking a major setback in what could have been one of the year’s biggest AI–crypto deals.
The company broke the news on Thursday that the merger could have enough balloting at a special shareholder confluence. The results were confirmed in a Form 8-K filing with the U. S. Securities and Exchange Commission (SEC).
Investor Backlash Over Valuation and Terms
The vote caps months of tension between Core Scientific’s board and major investors such as Two Seas Capital and Gullane Capital. Both firms, along with ISS and Glass Lewis, opposed the deal, claiming the offer undervalued Core Scientific.
The proposed all-stock transaction offered 0.1235 CoreWeave shares per Core Scientific share. However, it lacked a downside collar, leaving shareholders exposed to CoreWeave’s volatile stock price.
Bitcoin Miners Recognize Their AI Value
The failed merger underscores how bitcoin miners’ energy-heavy infrastructure has become valuable for AI data-center operators. Earlier this month, a consortium including BlackRock, Nvidia, Microsoft, and Elon Musk’s xAI acquired Aligned Data Centers for $40 billion, valuing its energy capacity 160% higher than that of public bitcoin miners.
“It’s an uncomfortable morning for the Core Scientific board,” wrote Matthew Sigel, Head of Digital Asset Research at VanEck, on X. He praised shareholders for “fighting every battle that mattered” since the company’s 2023 bankruptcy, including rejecting excessive executive pay and exposing CoreWeave’s bid as inadequate.
Sigel added, “With no downside collar, this deal was like selling your restaurant to the guy who eats there every day and letting him pay in loyalty points.”
CoreWeave Vows to Maintain Partnership
Following the vote, CoreWeave CEO Michael Intrator said the company “respects the views of Core Scientific shareholders and looks forward to continuing our commercial partnership.”
Despite the failed merger, Core Scientific shares rose 5% to $21.84, while CoreWeave stock dropped over 6% to $131 in post-vote trading.
The Bigger Picture
The rejection stage is more than a neglected merger. It reflects a powerful faulting toward shareholders’ ascendance over post-bankruptcy Core Scientific. Besides the reward, the bitcoin mining infrastructure is going forth as a strategic asset in the booming AI data-center economy.
As the AIcrypto convergence accelerates, miners like Core Scientific could find themselves courted by multiple tech giants eager to bug into their scalable, energy-efficient facilities.
Disclaimer: The information in this clause is for educational purposes solely and does not constitute financial advice.
