What happened
Core Scientific shareholders rejected CoreWeave's $9 billion all-stock merger offer, terminating the agreement. This decision ensures Core Scientific remains an independent, publicly traded entity, following a prior rejection of CoreWeave's $1 billion bid. The rejection stemmed from concerns regarding the undervaluation of Core Scientific and the volatility of CoreWeave's stock, as advised by investment firms. Post-vote, Core Scientific's shares increased, while CoreWeave's declined. Their commercial partnership persists, with Core Scientific now focused on expanding its high-performance computing hosting business.
Why it matters
The termination of the merger agreement constrains CoreWeave's ability to directly integrate Core Scientific's digital infrastructure and operational assets, maintaining existing contractual and service level agreement structures. This preserves the current operational independence of Core Scientific, eliminating anticipated consolidation benefits for procurement and strategic planning teams. Consequently, existing dependencies within their commercial partnership persist, requiring continued separate oversight and due diligence from operational and vendor management teams, rather than a unified approach.
