CoreWeave ( CRWV ) CEO Michael Intrator told CNBC the company won’t raise its full $9 billion offer for bitcoin miner Core Scientific ( CORZ ), calling the purchase 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 proceed as planned even if the deal is rejected.
In addition, proxy advisory firm Institutional Shareholder Services (ISS) yesterday urged shareholders to reject CoreWeaves’ proposed acquisition of Core Scientific ahead of a vote on 30 October.
ISS argued that Core Scientific, a supplier of computing power, has done well on its own and believes the company can continue to grow without the merger.
In July, CoreWeave, a cloud infrastructure company focused on artificial intelligence, offered an all-stock deal for CORZ at $20.40 per share.
Core Scientific investor Two Seas Capital has led the charge against the deal, citing flaws in the sales process, deal structure and valuation, and warned that the fixed currency ratio exposes Core Scientific shareholders to volatility in CoreWeaves’ stock.
CRWV is down 4.3% in Tuesday trade, with CORZ ahead 1.6% to around its highest level since the deal announcement in July – perhaps signaling markets favoring the company remaining independent rather than proceeding with the sale.
