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AUSTIN - Core Scientific, Inc. (NASDAQ:CORZ), a provider of digital infrastructure for high-density colocation services and digital asset mining, announced Thursday it has terminated its merger agreement with CoreWeave, Inc., effective immediately. The announcement comes as CORZ stock has posted a significant 15% return over the past week, according to InvestingPro data.
The termination follows a special meeting of Core Scientific stockholders where the company failed to receive the necessary votes to approve the previously announced merger agreement.
Core Scientific will remain a publicly traded company with its common stock continuing to trade on Nasdaq under the ticker symbol CORZ.
The company currently operates facilities across seven states, including Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma, and Texas. Core Scientific derives the majority of its revenue from earning digital assets but expects to rapidly increase revenue from high-density colocation services.
The firm has stated intentions to repurpose its remaining digital asset mining facilities to support high-density colocation computing services "as circumstances allow" while maintaining access to electrical power under its control.
Core Scientific describes itself as a leader in digital infrastructure that provides dedicated, purpose-built facilities for high-density colocation services and digital asset mining, according to the company’s press release statement.
The company is also in the process of converting most of its existing facilities to support artificial intelligence-related workloads and next-generation colocation services.
In other recent news, Core Scientific, Inc. announced that its shareholders have rejected the proposed merger with CoreWeave, Inc. This decision came after a special meeting where the company failed to secure the necessary votes for the merger approval. Core Scientific will disclose the final voting outcomes in a filing with the U.S. Securities and Exchange Commission. Meanwhile, Jefferies has raised its price target for Core Scientific to $24, maintaining a Buy rating, as the firm anticipates resistance to the merger. Investment firm Two Seas Capital LP, a significant shareholder, had also urged investors to oppose the deal, arguing that the offer undervalued the company. Additionally, H.C. Wainwright upgraded Core Scientific’s stock rating from Neutral to Buy, setting a price target of $25. This upgrade came after proxy advisory firms ISS and Glass Lewis recommended voting against the merger. These developments highlight significant shareholder sentiment and analyst perspectives surrounding Core Scientific’s strategic direction.
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