Core Scientific’s Merger With CoreWeave: What Happened At The Special Meeting Of Shareholders?

• Core Scientific shareholders declined to approve the merger at a special meeting.
• Core Scientific’s stock fell 2% but the ticker witnessed strong bullish sentiment on Stocktwits.
• Two Seas Capital, VanEck and proxy advisory firms ISS and Glass Lewis have previously voiced concerns about the deal. 

Core Scientific, Inc. (CORZ) on Thursday announced the termination of its merger agreement with CoreWeave, Inc. (CRWV) after the company’s shareholders declined to approve the merger at a special meeting. 

Following the voting results, Core Scientific stock traded over 2% lower on Thursday afternoon. On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory amid ‘extremely high’ message volume levels. 

What Was In The Merger Proposal?

In July, CoreWeave proposed to purchase Core Scientific through an all-stock merger, valued at $9 billion. Core Scientific initially turned down the proposal, citing concerns that the bid undervalued the company. 

However, the firm consequently agreed and wrote to its shareholders to provide support for the merger. 

Major Shareholders’ Opinion On The Merger 

On Tuesday, Two Seas Capital LP, a major stakeholder in Core Scientific had urged fellow investors to reject the merger, stating that the proposed acquisition undervalues the company's assets and future prospects.

The investor suggested that Core Scientific had competitive advantages including low-cost power, robust data center management expertise, and a strong development pipeline, signaling potential substantial returns for shareholders if allowed to operate independently.

On similar lines, on October 23, another shareholder, VanEck said it will vote against the company’s planned merger with CoreWeave, given Core Scientific’s AI potential.

Proxy advisory firms ISS and Glass Lewis have also voiced concerns, citing the market’s persistent undervaluation of the deal compared to Core Scientific’s stock price, along with the lack of protections against potential losses.

Core Scientific stock has gained over 60% in the last 12 months. 

Also See: Fox Stock Rallies On $1.5B Share Repurchase Plan, Q1 Beat

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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