CoreWeave's $9 billion acquisition of Core Scientific is hitting serious turbulence as shareholders gear up to potentially torpedo the deal. CEO Michael Intrator just told CNBC the Bitcoin miner turned data center operator is merely a "nice to have" - not essential - as proxy advisors and major investors line up against what they're calling an "underwhelming" offer that undervalues the target.
CoreWeave CEO Michael Intrator just delivered what might be the most expensive shrug in AI infrastructure history. With shareholders preparing to potentially kill his company's $9 billion bid for Core Scientific, Intrator told CNBC on Tuesday that the Bitcoin miner turned data center operator is merely a "nice to have, not a need to have."
The comment comes as opposition to the July-announced all-stock deal reaches fever pitch. Institutional Shareholder Services, the influential proxy advisor, recommended Monday that Core Scientific shareholders vote against the acquisition when they meet October 30. ISS's reasoning? Core Scientific's stock has kept climbing since the deal was announced, suggesting investors think the company is worth more than CoreWeave's offering.
That sentiment isn't just coming from advisory firms. Two Seas Capital, a major Core Scientific shareholder, went public with its opposition earlier this month, calling the deal "underwhelming" in a Friday letter to fellow investors. "We see no reason why Core Scientific shareholders should accept such an underwhelming deal," Two Seas wrote. "Based on recent trading data, we see little evidence that they will."
The market seemed to agree from day one. Core Scientific's stock plummeted nearly 18% immediately after the July acquisition announcement - a classic sign that investors thought the premium wasn't rich enough. Since then, shares have recovered and continued climbing, creating what ISS sees as a clear disconnect between CoreWeave's offer and the market's valuation.
Intrator says he's "disappointed" by the ISS recommendation but isn't budging on price. "We think that the bid that we put out there for [Core Scientific] is a fair representation of the relative value of the two companies as an all stock deal," he told CNBC. "Everything has a value, and the number we put out is the value we're willing to pay for them under all circumstances."
That stance puts CoreWeave in an interesting position for an AI infrastructure company riding the current investment wave. The firm has been aggressively expanding through acquisitions this year, snapping up AI-focused companies like OpenPipe, Weights & Biases, and Monolith. "We've been in acquisitive mode as we continue to build and extend the functionality of our company," Intrator explained.
