Core Scientific investors expected to resist merger with CoreWeave

Core Scientific shareholders are reportedly opposing CoreWeave's proposed terms for its acquisition of the company, arguing that the $9 billion deal is undervalued and would harm their interests.

Several shareholders plan to vote against the deal unless the terms are revised, according to the Financial Times on Tuesday, citing people familiar with the matter. The article mentions that a shareholder vote on the matter has not yet been scheduled, but is expected to take place this autumn.

CORZ aims to maximise shareholder value

Former Louisiana Attorney General Charles Foti and the law firm Khan Swick & Foti also launched an investigation into the takeover bid last month. The law firm said it wanted to determine whether the 0.1235 shares of CoreWeave that CORZ shareholders were being offered was appropriate or undervalued.

The $9 billion purchase price of CoreWeave was valued at $20.40 per share based on the company's closing price on July 3, 2025. The company estimates that the deal will leave shareholders with a stake of less than 10%.

The FT report does not specify what terms the shareholders want to change. According to the company, which provides GPU-based cloud computing services, some of the financial impacts of the deal include the cancellation of more than $10 billion in future aggregate lease payments under existing contracts. The company also expects to save another $500 million a year in lease costs by the end of 2027.

Core Scientific CEO Adam Sullivan believes the deal will help the company develop AI infrastructure for other companies while maximizing shareholder value. The company also claims the acquisition will help CoreWeave build out a network of data centers that will drive long-term revenue growth and improved profitability.

“Verticalizing control of Core Scientific’s high-performance data center infrastructure allows CoreWeave to significantly improve operational efficiency and de-risk our future expansion, strengthening our growth trajectory.”

– Michael Intrator , CEO and co-founder of CoreWeave.

CoreWeave previously attempted to acquire Core Scientific in 2024, but their offer was rejected because the price was not high enough. The proposed price of $5.75 per share valued the Bitcoin miner at $1 billion. Core Scientific later proposed a $1.225 billion deal to improve the infrastructure support for its Nvidia chips and deepen its existing relationship with CoreWeave.

CORZ has confirmed its intention to provide 70 megawatts of infrastructure at the bitcoin company's Austin, Texas, facilities in the second half of 2025. The cloud computing provider plans to fund the necessary capital expenditure of about $3.5 billion over 12 years.

Core Scientific Expands Cryptocurrency Mining Capabilities

Core Scientific reported $580 million in growth in the first quarter of the year. The company's revenue fell slightly to $79.5 million, reflecting the quadrennial halving in April 2024, which saw the BTC mining reward decrease from 6.25 BTC to 3.125 BTC.

Core Scientific's first-quarter revenue was $67.2 million from self-hosted mining, $3.8 million from hosted mining, and $8.6 million from HPC hosting. The company forecasts annual hosted computing revenue of approximately $360 million by early 2026.

Sullivan said the company intends to transform and expand its cryptocurrency mining capacity and increase profits. It also hopes to secure 250 megawatts of mining capacity for the Bitcoin company by the end of this year.

At the time of publication, Core Scientific holds 977 BTC, ranking 38th among companies holding Bitcoin. The company's stock price is also $13.65, up 8% in the last 24 hours.

Source: cryptonews.net