Introduction
Bitcoin miner Core Scientific’s shareholders have rejected a proposed $9 billion acquisition by AI infrastructure firm CoreWeave, dealing a significant blow to one of the most-watched mergers in the cryptocurrency sector. The deal, which had been in negotiation for over a year, failed to secure necessary approval during Thursday’s shareholder meeting, with final voting results to be formally disclosed in an SEC filing on Friday.
Key Points
- The merger would have exchanged each Core Scientific share for 0.1235 shares of CoreWeave Class A common stock
- CoreWeave had been pursuing the acquisition of Core Scientific for more than a year prior to the shareholder vote
- The $9 billion deal was finalized in July 2024 but remained subject to shareholder approval that was ultimately not secured
The Failed Merger: A Year-Long Pursuit Ends in Shareholder Rejection
CoreWeave’s ambitious attempt to acquire Bitcoin mining company Core Scientific has concluded unsuccessfully after more than twelve months of negotiations and planning. The $9 billion acquisition, finalized in July 2024 but contingent on shareholder approval, represented one of the most significant potential mergers between cryptocurrency mining and artificial intelligence infrastructure companies. The preliminary vote results from Thursday’s shareholder meeting indicate that Core Scientific shareholders were unwilling to accept the proposed exchange ratio of 0.1235 shares of CoreWeave Class A common stock for each Core Scientific share they owned.
The rejection marks a dramatic turn in what had been characterized as one of the most closely watched M&A deals in the crypto space. CoreWeave’s persistent pursuit of Core Scientific spanned over a year, reflecting the growing convergence between Bitcoin mining operations and AI computing infrastructure. The failed vote represents not just a setback for CoreWeave’s expansion plans but also signals potential challenges in bridging the valuation expectations between traditional cryptocurrency mining and emerging AI infrastructure businesses.
Financial Implications and Shareholder Considerations
The proposed transaction structure would have transformed Core Scientific shareholders into partial owners of CoreWeave, with the exchange ratio carefully calculated to reflect the $9 billion valuation. This arrangement would have provided Core Scientific investors exposure to CoreWeave’s AI infrastructure business while maintaining some connection to Bitcoin mining operations through the combined entity. The shareholder rejection suggests that either the valuation or the strategic direction failed to convince Core Scientific’s investor base of the merger’s merits.
The Securities and Exchange Commission filing scheduled for Friday will provide crucial details about the voting margins and potentially reveal the specific concerns that led to the deal’s rejection. Market analysts had been closely monitoring the transaction as a bellwether for similar mergers between cryptocurrency and AI companies, particularly given Core Scientific’s established position in Bitcoin mining and CoreWeave’s rapid growth in AI infrastructure. The negative outcome may prompt both companies to reconsider their strategic options and could influence how similar cross-sector deals are structured in the future.
Broader Market Impact and Future Prospects
This failed acquisition represents more than just a corporate setback—it signals potential headwinds for mergers between cryptocurrency mining operations and AI infrastructure providers. The deal’s collapse may cause investors to reevaluate the synergies between Bitcoin mining and AI computing, particularly as both sectors face evolving regulatory landscapes and market conditions. Core Scientific’s position as a major Bitcoin miner means this development could influence how other mining companies approach potential partnerships or acquisitions in the AI space.
For CoreWeave, the rejection after a year-long pursuit represents a significant strategic hurdle in its expansion plans. The AI infrastructure company must now determine whether to pursue alternative acquisition targets, revise its approach to Core Scientific, or focus on organic growth. Meanwhile, Core Scientific faces questions about its standalone strategy in a Bitcoin mining industry that continues to evolve amid changing energy costs, regulatory pressures, and technological advancements. The formal disclosure of voting results in Friday’s SEC filing will provide clearer insight into shareholder sentiment and potentially shape both companies’ next moves in this dynamic intersection of cryptocurrency and artificial intelligence.
📎 Related coverage from: cointelegraph.com