Core Scientific rejected CoreWeave’s bid, as stockholders did not provide the requisite number of votes to merge with the Nasdaq-listed company. The final vote rejected a $9B deal and a widely awaited takeover. Core Scientific (CORZ) stockholders rejected the $9B merger bid from Nasdaq-listed CoreWeave (CRWV). Core Scientific, a leader in high-density colocation services and mining, announced its stockholders did not vote to approve the previously announced merger with CoreWeave. The deal was supposed to be an all-stock merger, which was greeted by the company’s management but rejected by shareholders. One of the reasons for rejections was the volatile price of the recently listed CRWV, making the value of the share swap uncertain. CoreWeave also lost its deal premium, and there were early signs of rejection even before the official vote. The final voting report will be summarized in an 8-K filing with the US Securities and Exchange Commission. As Cryptopolitan previously reported , the merger was viewed with some skepticism back in August, with Core Scientific investors showing resistance to the takeover. Core Scientific will remain independent as a mining and data center company, in addition to holding a treasury of 2,116 BTC. The company reported mining 1,990 BTC in the year to date. CoreWeave is growing its AI services independent of the merger, recently announcing expanded AI contracts for US Government entities. 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. Core Scientific (CORZ) has been rising over the past months, while investor groups lobbied shareholders to reject the CoreWeave bid. | Source: Yahoo Finance 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. Join Bybit now and claim a $50 bonus in minutes
