Core Scientific shareholders have rejected a proposed $9 billion all-stock merger with AI computing firm CoreWeave, terminating what would have been one of the largest transactions in the high-power computing space. The shareholder rejection sent CoreWeave’s stock down nearly 4% while Core Scientific’s shares rose slightly, reflecting investor concerns that the deal undervalued the Bitcoin miner despite ongoing profitability challenges in the cryptocurrency mining industry.
about CoreWeave's $9B Bitcoin Miner Deal Rejected by ShareholdersAdam Sullivan
0 posts last weekCoreWeave’s $9B Core Scientific Deal Faces Legal Scrutiny
CoreWeave, a rising AI infrastructure provider, announced a $9B all-stock acquisition of Bitcoin mining firm Core Scientific on July 7. The deal, expected to close in Q4 2025, grants Core Scientific shareholders 0.1235 CoreWeave shares per share held, valuing the combined entity at $9B. CoreWeave gains 1.3GW of power capacity, with an additional 1GW for expansion, enhancing its AI and HPC infrastructure. However, the market reacted negatively, with Core Scientific shares dropping 17% and CoreWeave falling 3%. Legal concerns emerged as Brodsky & Smith investigates potential fiduciary breaches by Core Scientific’s board. Critics question the deal’s fairness and long-term shareholder value.
about CoreWeave's $9B Core Scientific Deal Faces Legal ScrutinyCoreWeave to Buy Core Scientific in $9B AI Data Center Deal
CoreWeave, an AI infrastructure company, has agreed to acquire Core Scientific, a major Bitcoin miner and data center operator, in a $9 billion all-stock deal. The transaction, expected to close by Q4 2024, will provide CoreWeave with 1.3 gigawatts of power capacity across Core Scientific’s national data centers, with potential for an additional 1 GW expansion. The deal eliminates over $10 billion in future lease expenses for CoreWeave and strengthens its AI growth strategy. Core Scientific shareholders will receive 0.1235 CoreWeave shares per owned share. Both industries—AI data centers and Bitcoin mining—compete for energy resources, making this merger strategically significant. CoreWeave’s stock dipped 3.3% post-announcement, while Core Scientific’s plunged 17%.
about CoreWeave to Buy Core Scientific in $9B AI Data Center DealCore Scientific Reports Q4 Loss and Plans Major Data Center Expansion
Core Scientific reported a $265 million net loss for Q4 2024, primarily due to a non-cash adjustment related to its stock price. Despite this, the Bitcoin mining company announced a $1.2 billion data center expansion in Texas with CoreWeave, aiming to capitalize on the demand for high-performance computing, potentially generating over $10 billion in cumulative revenue. The company’s stock rose 12.29% following the announcement.
about Core Scientific Reports Q4 Loss and Plans Major Data Center Expansion