Core Scientific Rejects $9B CoreWeave Merger, Shares Jump
Core Scientific shareholders have rejected the proposed $9 billion all-stock merger with AI cloud provider CoreWeave, citing undervaluation and lack of downside protection. Investors, led by Two Seas Capital and proxy advisers ISS and Glass Lewis, argued the deal undervalued Core Scientific’s bitcoin mining and AI data center assets and exposed shareholders to CoreWeave’s share volatility. The merger would have converted each Core Scientific share into 0.1235 CoreWeave shares.
After the vote, Core Scientific shares jumped about 5% to $21.84, while CoreWeave shares fell over 6% to $131. The failed Core Scientific merger deal also ends CoreWeave’s plan to expand AI data center capacity and offset roughly $10 billion in future leasing costs. CoreWeave CEO Michael Intrator said the firms will still collaborate on AI infrastructure.
Core Scientific will now focus on standalone growth and may seek alternative partnerships with stronger valuation and governance terms. Crypto traders will watch how Core Scientific’s bitcoin mining performance and AI-optimized data centers drive its long-term value.
Bullish
The rejection of the $9 billion Core Scientific merger signals stronger governance and higher asset valuation, which buoyed Core Scientific’s stock by 5%. For the bitcoin mining sector, the decision underscores investors’ confidence in standalone growth and mining profitability. In the short term, market sentiment toward Core Scientific and its bitcoin mining operations is positive, driving bullish momentum. Over the long term, improved focus on Core Scientific’s AI-optimized data centers and mining expansion could enhance network hashrate and miner returns, supporting sustained upward pressure on Bitcoin prices.