On October 30, shareholders of Core Scientific (CORZ) are set to cast their votes regarding a $9 billion acquisition proposal from CoreWeave (CRWV). David Faber from CNBC suggests that the deal is unlikely to succeed, as significant institutional shareholders and activist investors have indicated plans to oppose the offer.
The all-stock offer proposes that Core Scientific shareholders receive 0.1235 shares of CoreWeave for each share they own, which would value CORZ at approximately $20.40 per share. While this figure represents a 66% premium compared to Core Scientific’s share price prior to the leak of the deal discussions, many investors believe that the company is worth more. Reports from the Financial Times indicate that some shareholders are advocating for a valuation near $25 per share, translating to a total of around $11.5 billion.
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CoreWeave’s CEO, Michael Intrator, has clarified that the company is not considering increasing its bid, regardless of the feedback from shareholders. He believes that the existing offer accurately reflects Core Scientific’s worth and will be advantageous for both entities moving forward.
Should the acquisition succeed, it would provide CoreWeave with ownership of 1.3 gigawatts of data center capacity and remove $10 billion in anticipated lease obligations. Since emerging from bankruptcy in 2024, Core Scientific has pivoted from cryptocurrency mining to focusing on high-performance computing demands. The proposed agreement is expected to finalize in the fourth quarter of 2025, contingent on necessary approvals.
Since going public in March, CoreWeave has seen its stock price surge fourfold. Despite recent performances, the shares of both companies have experienced volatility since the announcement of the acquisition. If shareholders reject the proposal next week, CoreWeave will face a decision on whether to withdraw or adjust its negotiation tactics.
CoreWeave’s operational achievements are notable, with the company recently reporting a second-quarter revenue of $1.2 billion, showcasing a stunning growth of 207% year-over-year (YoY). Furthermore, its contracted backlog has notably increased, doubling year-to-date (YTD) to an impressive $30.1 billion.
CEO Michael Intrator and CFO Nitin Agrawal have been actively participating in major conferences, maintaining a consistent message: the demand for their services is insatiable. CoreWeave is currently facing supply constraints, indicating that customer demand exceeds its available capacity.
