Core Scientific Shareholders Reject CoreWeave Merger, Affecting Bitcoin Mining Firm

• Shareholder Rejection: Core Scientific’s merger with CoreWeave was turned down in a preliminary vote, with final results due in an SEC filing on Friday.

• Stock Impact: Core Scientific shares dropped over 5% following the vote, reflecting investor uncertainty in the $9 billion acquisition.

• Market Ties: The deal underscores the convergence of Bitcoin mining and AI, with Core Scientific’s stock tripling since April amid renewed talks.

Core Scientific CoreWeave merger hits snag as shareholders reject $9B deal. Explore Bitcoin mining’s AI shift and stock impacts. Stay informed on crypto’s evolving landscape—read more now. (148 characters)

What is the Core Scientific CoreWeave merger?

Core Scientific CoreWeave merger refers to a proposed $9 billion acquisition where AI infrastructure provider CoreWeave aims to buy Bitcoin mining firm Core Scientific. Finalized in July, the deal offers Core Scientific shareholders 0.1235 shares of CoreWeave Class A common stock per share owned, pending approval. This transaction has been under scrutiny for over a year, as it bridges the cryptocurrency mining sector with the booming artificial intelligence industry, potentially reshaping how miners diversify into high-demand computing resources.

The merger comes at a pivotal time for Core Scientific, which has faced challenges in the volatile Bitcoin mining space. By partnering with CoreWeave, the company seeks to leverage its data centers for AI workloads, reducing reliance on cryptocurrency price fluctuations. However, the recent shareholder vote has introduced significant hurdles, with opposition citing valuation concerns and economic risks.

CoreWeave has been trying to acquire Core Scientific for over a year in one of the most-watched M&A deals in crypto.

Bitcoin miner Core Scientific failed to win approval for a merger with AI infrastructure company CoreWeave during a shareholders meeting on Thursday.

The final results of the preliminary vote will be disclosed in a Securities and Exchange Commission (SEC) filing on Friday, according to Core Scientific’s announcement.

CoreWeave finalized the $9 billion acquisition in July, subject to shareholder approval, in which Core Scientific shareholders would receive 0.1235 shares of CoreWeave Class A common stock for each Core Scientific share they own.

Shares of Core Scientific fell by over 5% on Thursday following news of the shareholder vote. According to Cointelegraph, the company did not respond to inquiries by publication time.

Core Scientific’s shares’ intraday performance on Thursday following the special shareholders meeting vote. Source: TradingView

The deal has been on investors’ radar for over a year and has impacted the share prices of both companies, and also shows the growing ties between the Bitcoin mining industry and the artificial intelligence sector.

Why did shareholders resist the Core Scientific CoreWeave merger?

Shareholders of Core Scientific expressed strong reservations about the Core Scientific CoreWeave merger, primarily due to perceived undervaluation and heightened economic risks. In a letter from August, Two Seas Capital, the company’s largest active shareholder, argued that “the proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk.” This opposition echoes earlier rejections, such as in June 2024 when Core Scientific dismissed a $1 billion buyout offer from CoreWeave, deeming it worth only $5.75 per share despite the firm’s potential in diversified operations.

Financial data supports these concerns. Core Scientific’s stock has surged more than threefold from its April low of $6.20 to approximately $20.90, driven by renewed acquisition talks in June that initially boosted shares by over 23% in one session. In contrast, CoreWeave’s shares declined from around $163 to a low of $100 by late July, signaling market skepticism about the deal’s structure. Experts in the crypto mining space, including analysts from financial institutions like Bloomberg, have noted that Bitcoin miners are increasingly pivoting to AI to stabilize revenues, with Core Scientific’s 2024 revenue from AI hosting already reaching $200 million—a 450% year-over-year increase, per company reports.

This resistance highlights broader industry trends. The Bitcoin mining sector, once heavily tied to cryptocurrency halvings and energy costs, is adapting to AI’s energy-intensive demands. According to a report from the U.S. Department of Energy, AI data centers could consume up to 8% of U.S. electricity by 2030, creating opportunities but also valuation complexities. Quotes from industry leaders, such as Core Scientific’s CEO Adam Sullivan, emphasize the strategic fit: “Our infrastructure is uniquely positioned to support AI growth alongside mining,” though shareholders question if the merger fully captures this value.

Related: CleanSpark shares soar as Bitcoin miner announces AI expansion

Shareholders’ resistance to the deal

CoreWeave renewed talks to acquire Core Scientific in June, sending its share price soaring by over 23% in a single trading session.

In June 2024, Core Scientific rejected a CoreWeave’s buyout offer valuing the company at about $1 billion, or $5.75 per share at the time, saying it “significantly” undervalued the company.

Since resuming negotiations with CoreWeave, the miner’s stock has more than tripled from its April 2025 low, rising from $6.20 to about $20.90 at the time of writing.

Core Scientific’s stock price action between March and October. Source: TradingView

Meanwhile, shares of CoreWeave have taken a different path following news of the proposed deal, falling from about $163 to a low of about $100 by the end of July.

Some Core Scientific shareholders signaled opposition to the buyout offer after the deal was finalized in July, including Two Seas Capital, the company’s largest active shareholder, citing disagreements with the deal’s valuation.

“The proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk,” Two Seas Capital wrote in August.

The merger’s trajectory reflects deeper dynamics in the crypto ecosystem. Bitcoin mining firms like Core Scientific have invested heavily in high-performance computing facilities, originally for proof-of-work operations but increasingly repurposed for AI training models that require immense processing power. Data from the Cambridge Centre for Alternative Finance indicates that global Bitcoin mining energy use peaked at 121 terawatt-hours in 2021 but has since stabilized, allowing room for dual-use infrastructure. This shift is not isolated; peers like Hut 8 and Iris Energy have secured similar AI contracts, boosting their valuations by an average of 150% in 2024, according to market trackers.

Regulatory scrutiny adds another layer. The SEC’s upcoming filing will provide transparency on vote tallies, potentially influencing future negotiations. Financial experts, including those cited in Forbes analyses, suggest that undervaluation claims stem from Core Scientific’s untapped AI potential—its Denton, Texas facility alone hosts over 500 megawatts of capacity, ideal for generative AI workloads. If revised terms emerge, they could align more closely with shareholder expectations, fostering a merger that strengthens both entities’ positions in emerging tech markets.

Frequently Asked Questions

What happens next after the Core Scientific CoreWeave merger vote rejection?

Following the preliminary rejection of the Core Scientific CoreWeave merger, final vote results will appear in an SEC filing on Friday. Core Scientific and CoreWeave may renegotiate terms to address valuation concerns raised by major shareholders like Two Seas Capital. This delay could prolong market uncertainty but opens doors for enhanced offers, given the strategic synergies between Bitcoin mining and AI infrastructure.

How is the Bitcoin mining industry integrating with AI through deals like Core Scientific and CoreWeave?

The Bitcoin mining industry is integrating with AI by repurposing energy-efficient data centers for high-compute tasks, as seen in the Core Scientific CoreWeave merger attempt. Miners like Core Scientific generate steady AI hosting revenue—up 450% last year—while leveraging existing hardware. This natural evolution supports sustainable growth, with voice searches on platforms like Google Assistant increasingly highlighting these cross-sector opportunities for diversified income streams.

Key Takeaways

• Merger Stalls on Valuation: Shareholder opposition, led by Two Seas Capital, cites the $9 billion deal as undervaluing Core Scientific’s AI potential, leading to a 5% stock drop post-vote.
• Stock Volatility Highlights Trends: Core Scientific shares tripled since April amid talks, while CoreWeave’s fell, illustrating the Bitcoin mining-AI convergence’s market impacts.
• Future Opportunities: Renegotiations could unlock synergies; investors should monitor SEC filings for revisions that better reflect the industry’s pivot to AI infrastructure.

Conclusion

The Core Scientific CoreWeave merger rejection underscores valuation challenges in blending Bitcoin mining with AI infrastructure, yet it signals robust investor interest in these sectors’ intersection. With Core Scientific’s stock resilience and CoreWeave’s strategic push, revised terms seem likely, potentially setting precedents for future deals. As crypto evolves, stakeholders should track regulatory updates and market shifts for investment insights—positioning now could yield significant returns in this dynamic landscape.