Core Scientific Shareholders Reject $9 Billion CoreWeave Merger
- Core Scientific shareholders rejected a proposed $9 billion all-stock merger with AI computing company CoreWeave.
- The deal would have provided CoreWeave with access to Core Scientific’s national data center footprint of up to 1.3 gigawatts of gross power, with potential expansion.
- Shares of CoreWeave fell following the announcement, while Core Scientific’s stock saw an increase.
- Core Scientific investors believed the merger undervalued the company amid challenges in Bitcoin mining.
Core Scientific’s shareholders voted against a significant merger with CoreWeave, which would have expanded AI computing capabilities but was seen as undervaluing the Bitcoin miner amid industry challenges.
The rejection reflects investor concerns over valuation and highlights ongoing difficulties in the Bitcoin mining sector, where profitability has been impacted by reduced rewards and rising operational costs. Source
