CoreWeave (CRWV) CEO Michael Intrator told CNBC the company will not raise its $9 billion all-stock offer for bitcoin miner Core Scientific (CORZ), calling the acquisition a “nice to have, not a need to have.” He said the offer fairly reflects the relative value of both companies and that CoreWeave will continue as planned even if the deal is rejected.
In addition, proxy advisory firm Institutional Shareholder Services (ISS) yesterday urged shareholders to reject CoreWeave’s proposed purchase of Core Scientific ahead of a vote on Oct. 30.
ISS argued that Core Scientific, a computing power provider, has performed well on its own and believe the company can continue to grow without the merger.
CoreWeave, a cloud infrastructure firm focused on AI, in July offered an all stock deal for CORZ for $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 CoreWeave’s stock.
CRWV is lower by 4.3% in Tuesday trade, with CORZ ahead 1.6% to about its highest level since the July deal announcement — perhaps signaling markets favoring the company remaining independent rather than proceeding with the sale.