Core Scientific Inc on Thursday terminated its merger agreement with CoreWeave after Core Scientific shareholders voted against the proposal.
In July, CoreWeave struck an agreement to acquire Core Scientific in an all-stock deal valued at $9 billion.
Following the announcement, Two Seas Capital, which claims to be the largest active shareholder of Core Scientific, said it would vote against the deal, citing concerns with the sale process, deal structure, and valuation.
Proxy advisory firm Institutional Shareholder Services also recommended investors vote against the deal, saying Core Scientific has had considerable success as a standalone company.
The agreement had the support of Core Scientific’s board of directors, who said the combined company would benefit from several potential cost savings and synergies.
"We respect the views of Core Scientific stockholders and look forward to continuing our commercial partnership," CoreWeave CEO Michael Intrator stated.
CoreWeave had previously attempted to acquire Core Scientific with an all-cash offer in June 2024.
Core Scientific shares gained 4% to $21.62 in late morning trading on Thursday, while shares of CoreWeave fell nearly 7% to $130.52.