CoreWeave (CRWV) CEO Michael Intrator told CNBC that the company will not extend its $9 billion all-stock offer for bitcoin miner Core Scientific (CORZ), calling the acquisition a “nice to have, not a must.” He said the offer reflected the relative value of the two companies and that CoreWave would continue as planned even if the deal was rejected.
Additionally, proxy advisory firm Institutional Shareholder Services (ISS) yesterday urged shareholders to reject Core Scientific’s proposed purchase of Corewave ahead of a vote on October 30.
ISS argued that computing power provider Core Scientific has performed well on its own and believes the company can continue to grow without the merger.
AI-focused cloud infrastructure firm CoreWeave offered an all-stock deal for CORZ in July at $20.40 per share.
Core Scientific investor Two Seas Capital has led the charge, opposing the deal, citing flaws in the sale process, deal structure and valuation, and warning that the fixed exchange ratio exposes Core Scientific shareholders to volatility in CoreWave’s stock.
CRWV is 4.3% lower in Tuesday trading, with CORZ 1.6% ahead of its highest level since the July deal was announced – perhaps indicating the market is in favor of the company remaining independent rather than moving forward with a sale.