Shareholders of Core Scientific (CORZ) have dismissed a proposed $9 billion all-stock merger with CoreWeave (CRWV), putting a stop to a highly anticipated agreement in the AI data center arena.
CORZ’s stock rose by 4.5% following the announcement, while CRWV experienced a slight increase in losses, now down 5% for the day.
The rapid decision was influenced by recommendations from proxy advisors and at least one major CORZ investor, who advised against the deal, which many believed undervalued the company’s future potential and failed to provide safeguards against the volatility of CoreWeave’s stock.
This vote led Core Scientific to officially terminate the merger agreement, ending CoreWeave’s objective to increase its data center capacity and lower future leasing costs by approximately $10 billion.
