CoreWeave Shareholders Battle Contested 9B Takeover as Stock Rises 5.5% on 58th Ranked 1.31B Volume

CoreWeave (CRWV) rose 5.50% on August 5, with a trading volume of $1.31 billion, ranking 58th in market activity. The stock’s recent performance contrasts with ongoing shareholder concerns surrounding its $9 billion all-stock acquisition of Core Scientific (CORZ). Major investors in Core Scientific are reportedly resisting the deal, citing undervaluation and exposure to CoreWeave’s volatile share price. Under the proposed terms, Core Scientific shareholders would receive 0.1235 CoreWeave shares per share, but without downside protection. CoreWeave’s stock has fallen over 30% since the merger announcement on July 7, reducing the implied value of the deal for Core Scientific holders to just over $13 per share from $20.25.

Investors, including hedge funds holding over 1% of Core Scientific’s stock, are pushing for a collar agreement to stabilize the value of their shares. The pending expiration of a post-IPO lockup period on September 24 could further pressure CoreWeave’s stock, intensifying shareholder scrutiny. The acquisition aims to consolidate Core Scientific’s 40% contribution to CoreWeave’s 2024 computing power and eliminate $10 billion in lease costs. However, CoreWeave’s initial $5.75-per-share bid in June 2024 was rejected as insufficient, and the revised offer remains contentious. A shareholder vote is expected this fall, though no date has been set.

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