Key Takeaways
- Core Scientific’s proposed merger with AI infrastructure company CoreWeave has failed to secure shareholder approval.
- A preliminary vote indicated shareholder resistance, with the final results due for SEC filing.
- CoreWeave had previously agreed to acquire Core Scientific for $9 billion, pending shareholder consent.
- Shareholder opposition centered on concerns about the deal’s valuation and potential economic risks.
- The situation highlights the increasing intersection between the Bitcoin mining and artificial intelligence sectors.
Core Scientific Merger Blocked by Shareholders
Bitcoin miner Core Scientific has seen its planned merger with AI infrastructure firm CoreWeave fall through, as shareholders did not grant their approval during a special meeting held on Thursday. The definitive outcome of the preliminary vote is expected to be formally announced in a Securities and Exchange Commission (SEC) filing on Friday.
The acquisition deal, valued at $9 billion, was initially finalized in July. Under the terms of the proposed agreement, Core Scientific shareholders were set to receive 0.1235 shares of CoreWeave Class A common stock for each share of Core Scientific they held. However, this transaction was contingent upon the approval of Core Scientific’s shareholders.
Following the news of the shareholder vote, Core Scientific’s stock experienced a decline, dropping by more than 5% on Thursday. The company was contacted for comment but had not provided a response by the time of publication.
Investor Concerns and Deal Dynamics
This merger has been closely watched by investors for over a year, influencing the share prices of both companies. It also underscores the expanding connections forming between the Bitcoin mining industry and the rapidly growing artificial intelligence sector.
CoreWeave had reignited acquisition discussions with Core Scientific in June, a development that caused Core Scientific’s share price to surge by over 23% in a single trading session. This renewed interest came after Core Scientific had previously rejected an unsolicited buyout offer from CoreWeave in June 2024. At that time, the offer valued the company at approximately $1 billion, or $5.75 per share, a valuation Core Scientific deemed to be a significant undervaluation.
Since resuming negotiations with CoreWeave, Core Scientific’s stock value has more than tripled. It rose from a low of $6.20 in April 2025 to approximately $20.90 at the time of this report.
Conversely, CoreWeave’s shares followed a different trajectory after the proposed deal was announced. They fell from around $163 to a low of approximately $100 by the end of July.
💡 Significant opposition to the buyout offer emerged from some Core Scientific shareholders after the deal was initially finalized in July. Two Seas Capital, identified as the company’s largest active shareholder, voiced strong objections, citing disagreements with the proposed valuation. In August, Two Seas Capital issued a statement expressing that The proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk.
Expert Summary
The proposed acquisition of Core Scientific by CoreWeave has been definitively rejected by Core Scientific’s shareholders, halting a significant $9 billion deal. Persistent concerns over valuation and risk by major shareholders ultimately prevented the merger from proceeding, illustrating ongoing financial complexities within the Bitcoin mining and AI sectors.