CRWV Shares Fall Over 5% After $9 Billion Merger With CORZ Rejected

The proposed $9 billion all-stock merger between CoreWeave and Core Scientific faced rejection from shareholders, leading to a significant market reaction. Following the unsuccessful vote, CoreWeave's stock saw a decline of approximately 5%, while Core Scientific's shares rose by about 6%. Investors in Core Scientific, including Two Seas Capital, criticized the merger for its undervaluation of the company's future potential and lack of downside protection against CoreWeave's stock volatility. The deal was touted as a way to reduce leasing costs and bolster AI data center capacity. However, the quick vote, influenced by proxy advisers and major investors, resulted in the termination of the merger agreement, squashing CoreWeave's strategy to secure additional data center capacity and save $10 billion in future leasing costs. This development is part of a broader trend impacting the AI data center sector amid recent shifts in the cryptocurrency market, where Bitcoin and related assets experienced declines of 5% to 7%.

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