CoreWeave (CRWV) CEO Michael Intrator told CNBC that the company will not increase its $9 billion stock offer for bitcoin miner Core Scientific (CORZ), calling the acquisition “a nice to have, not a necessity.” 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.
Additionally, proxy advisory firm Institutional Shareholder Services (ISS) yesterday urged shareholders to reject CoreWeave’s proposed purchase of Core Scientific ahead of a vote on October 30.
ISS argued that Core Scientific, a computing power provider, has performed well on its own and believes the company can continue to grow without the merger.
CoreWeave, a cloud infrastructure company focused on artificial intelligence, offered an all-stock deal for CORZ in July for $20.40 per share.
Core Scientific investor Two Seas Capital has led the charge in opposing the deal, citing flaws in the sales process, deal structure and valuation, and warning that the fixed exchange ratio exposes Core Scientific shareholders to the volatility of CoreWeave shares.
CRWV was down 4.3% in Tuesday trading, with CORZ ahead 1.6% to around its highest level since the deal was announced in July, perhaps indicating that markets favor the company remaining independent rather than continuing with the sale.
