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CoreWeave Won’t Raise $9 Billion Stock Offer for Core Scientific as ISS Urges ‘No’

An ISS rejection signals growing risk to the deal ahead of an Oct. 30 shareholder vote.

Overview

  • CEO Michael Intrator told CNBC the acquisition is a “nice to have, not a need to have” and confirmed CoreWeave will not increase its all-stock bid.
  • Proxy adviser ISS recommended shareholders reject the transaction, arguing Core Scientific has performed well on its own and can continue to grow independently.
  • Major shareholder Two Seas Capital called the proposal underpriced and criticized the sale process and fixed exchange ratio that could expose holders to CoreWeave’s stock volatility.
  • On Tuesday, Core Scientific shares rose about 1.6% to near post-announcement highs while CoreWeave fell roughly 4.3%, suggesting investors favor Core Scientific’s independence.
  • CoreWeave’s July proposal values Core Scientific at $20.40 per share in an all-stock deal now set for a shareholder vote on Oct. 30.