Bitcoin Miner Core Scientific Investors Nix $9 Billion CoreWeave Merger

Bitcoin miner Core Scientific shareholders have rejected a proposed $9 billion merger with AI computing company CoreWeave. The all-stock deal, which was announced in July, fell short of the necessary votes for approval during a special shareholder meeting. Following the announcement, CoreWeave's shares decreased by nearly 4%, whereas Core Scientific's stock experienced a slight increase. CoreWeave co-founder and CEO Michael Intrator acknowledged the decision and expressed a desire to continue their commercial partnership. Investors were concerned that the merger undervalued Core Scientific and its potential in the increasingly challenging mining environment. The rejection of this merger highlights the ongoing challenges faced by Bitcoin miners, including rising operational costs and the need for diversification into other sectors, such as AI and high-performance computing. As the profitability of Bitcoin mining wanes, companies are seeking alternative revenue streams to sustain operations and adapt to market shifts.

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