Investors cite valuation and deal structure concerns as crypto miner opts to remain independent
Crypto miner Core Scientific (CORZ) has officially terminated its planned $9 billion all-stock merger with CoreWeave (CRWV) after shareholders voted down the proposal, ending months of debate and opposition from key investors and proxy firms. The decision marks the second failed takeover attempt by CoreWeave in less than a year.
The deal, announced in July 2025, was intended to give CoreWeave access to Core Scientific’s extensive data center and energy infrastructure to fuel soaring AI and cloud computing demand. However, opposition from major shareholders — notably Two Seas Capital, Core Scientific’s largest active investor — quickly mounted. The firm criticized the sale process, valuation, and fixed exchange ratio, which it said left shareholders exposed to volatility in CoreWeave’s stock price.
Despite Core Scientific’s board promoting the merger as a pathway to cost synergies and operational efficiencies, investor resistance proved decisive. Last week, Institutional Shareholder Services (ISS) also recommended shareholders vote against the deal, arguing the company’s strong post-bankruptcy performance demonstrated that it could thrive independently.
“We respect the views of Core Scientific stockholders and look forward to continuing our commercial partnership,” said Michael Intrator, CoreWeave’s CEO and co-founder, in a statement following the vote.
The market reaction was immediate — Core Scientific shares rose in early trading on optimism about its future as a standalone company, while CoreWeave’s stock dipped nearly 5%.
The collapse of the deal underscores growing investor caution in the AI-infrastructure and crypto-mining sectors, where valuations have surged amid accelerating demand. For now, Core Scientific appears poised to continue charting its own course, capitalizing on its expanding role in high-performance computing and digital asset mining.
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