Core Scientific and CoreWeave Acquisition - Shareholders of Core Scientific voted against the $9 billion acquisition by CoreWeave, leading to the immediate termination of the deal [1] - The acquisition was an all-stock deal announced in July 2025, where each Core Scientific share was to be exchanged for 0.1235 shares of CoreWeave Class A common stock [2] - Had the merger proceeded, CoreWeave would have gained control over approximately 1.3 gigawatts (GW) of gross power capacity from Core Scientific's data centre portfolio [3] Expected Outcomes of the Acquisition - CoreWeave anticipated cost reductions through streamlined business processes and reduced lease obligations from the acquisition [4] - The merger was expected to provide greater flexibility in infrastructure financing and lower capital costs, along with enhanced control over critical power resources [4] - Core Scientific's data centre development capabilities were expected to complement CoreWeave's expertise in power procurement, construction, and site management [5] CoreWeave's Recent Developments - CoreWeave has acquired Marimo, a creator of an open-source Python-based development environment optimized for AI and data-intensive workloads [5] - The integration of Marimo into CoreWeave's ecosystem aims to enhance AI development and deployment by embedding its technology into the CoreWeave Cloud platform [6] - Marimo's offering is designed for version-controlled programming, facilitating seamless scalability from prototyping to production deployment, thereby enhancing CoreWeave's developer platform capabilities for AI applications [7]

Legal Issues - A lawsuit has been filed by Joseph Soroka against multiple defendants, including Core Scientific, CoreWeave, and OpenAI, alleging catastrophic burn injuries from an explosion at a worksite in Denton, Texas [1][2] - The lawsuit claims that high-voltage transformers failed while being energized, resulting in an explosion that caused severe burns to Soroka [3] - Soroka is seeking over $1 million in damages for life-altering injuries, including severe burns and long-term disability, attributing negligence to the defendants for unsafe working conditions [3] Corporate Developments - Core Scientific's planned acquisition by CoreWeave has been terminated following a failed shareholder vote [4] - The company will now focus on developing up to 3.3 GW for AI and high-performance computing (HPC) workloads [4]

Core Perspective - Two Seas Capital LP, a significant shareholder of Core Scientific, expressed gratitude to shareholders for their engagement and support in rejecting the proposed sale to CoreWeave, emphasizing the value of Core Scientific and optimism for its future [2][3]. Company Strategy - The management team of Core Scientific is encouraged to focus on expanding the power pipeline, securing additional contracts, and developing next-generation data centers, highlighting the company's role as a pioneer in AI infrastructure [3][4]. - Core Scientific's CEO, Adam Sullivan, outlined value creation initiatives that bolstered confidence in the executive management team's capability to leverage the company's assets and competitive advantages [4]. Investment Management - Two Seas Capital, founded in 2020, specializes in event-driven investing with a focus on special situations, managing over $2 billion in assets, and is recognized for its thorough due diligence and ability to identify actionable investment opportunities [4].

Core Scientific Investor Update Call Summary Company Overview - **Company**: Core Scientific (NasdaqGS:CORZ) - **Date**: October 30, 2025 - **Industry**: AI infrastructure and high-performance computing data centers Key Points Merger with CoreWeave - Shareholders voted against the proposed merger with CoreWeave, leading to the termination of the deal [5][8] - The decision reflects broader market dynamics and valuation changes over the past four months [8] - Core Scientific's management emphasized the industrial logic behind the merger, highlighting potential financial synergies [7] Company Performance and Strategy - Core Scientific is positioned as a foundational player in the AI revolution, focusing on building critical infrastructure for future technologies [6] - The company has a strong development team and strategically located sites, enabling significant build-outs [9] - Core Scientific is on track to deliver 250 billable megawatts by year-end 2025 and a total of 590 megawatts by early 2027 [11][22] Power Pipeline and Capacity - The company has a total organic pipeline of approximately 2.3 gigawatts of gross capacity, with 1.5 gigawatts on a billable capacity basis [13] - A conservative approach is taken in presenting the pipeline, focusing on realistic execution rather than inflated metrics [14] - Core Scientific aims to deliver an additional 350 megawatts by the end of 2026, with 280 megawatts dedicated to the CoreWeave contract [22] Financial Outlook - Core Scientific has the potential to raise up to $4 billion in capital against the CoreWeave contract, which is expected to fund multiple non-dilutive equity investments [28] - The company is targeting a long-term leverage ratio of approximately five times stabilized adjusted EBITDA [29] - Recent market conditions have led to strong demand for data center capacity, with over $10 billion raised in debt and equity linked capital across the industry [25][26] Customer Engagement and Future Contracts - Core Scientific plans to diversify its customer base beyond CoreWeave, with expectations to sign at least one new customer and power contract before the next earnings call [29] - The company is actively engaging with potential customers and has been able to continue discussions during the merger process [36][75] Market Dynamics and Competitive Position - The demand for AI infrastructure is described as insatiable, with hyperscalers seeking gigawatts of capacity [84] - Core Scientific's competitive advantage lies in its strong operational team and the ability to deliver high-density data center capacity [10][87] - The company is adapting to market changes, including exploring non-NVIDIA GPU options for data centers [49] Challenges and Risks - Short-term challenges include permitting delays, weather impacts, and design modifications [11] - The company acknowledges the complexities of building high-density data centers and the operational maturity required [10] - Supply chain constraints and labor availability are identified as potential bottlenecks in the construction process [109] Conclusion - Core Scientific is optimistic about its future, focusing on executing its growth strategy and capitalizing on market opportunities [29][30] - The management team expresses confidence in the company's ability to deliver significant long-term value for shareholders [29]

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Core View - Core Scientific, Inc. (NASDAQ:CORZ) has been upgraded from "Neutral" to "Buy" by H.C. Wainwright, with a price target set at $25.00, following recommendations from proxy advisory firms ISS and Glass Lewis against the proposed acquisition by CoreWeave (CRWV) [1][4]. Company Competencies - Core Scientific is recognized for its ability to rapidly develop compute-focused infrastructure at low costs, expertise in artificial intelligence compute builds, and a strong record in customer acquisition and support [2][3]. Market Position - The firm maintains a positive outlook on Core Scientific based on its proven track record and leadership in AI compute infrastructure, which has led to the rating upgrade [3][4]. Acquisition Context - The upcoming acquisition of Core Scientific by CoreWeave is facing opposition from leading proxy advisory firms, which may impact investor sentiment and the company's strategic direction [4]. Transition to AI - Core Scientific has successfully transitioned into an AI-focused business by leveraging advanced infrastructure and high-performance computing (HPC) expertise [4].

Core Scientific and CoreWeave Acquisition Update - Core Scientific's stock rose over 6% to $22.08 following the rejection of CoreWeave's acquisition offer at a special shareholder meeting [1] - CoreWeave's stock fell over 5% to $132.67 after the acquisition deal was terminated [1] - The acquisition, initially announced in July, was valued at approximately $9 billion and aimed to expand CoreWeave's AI computing infrastructure [1] Shareholder Reactions and Strategic Implications - Major shareholders, including Two Seas Capital, opposed the acquisition, and influential voting advisory firms Glass Lewis and ISS recommended shareholders reject the deal [2] - Glass Lewis noted that while the acquisition had strategic merit, Core Scientific might have greater upside potential as an independent company if it capitalizes on growing computing demand [2] - Market sentiment had anticipated the deal's failure, as evidenced by the negative deal spread observed in the months following the announcement [2] CoreWeave's Response and Future Strategy - CoreWeave's CEO, Michael Intrator, stated that the company would not increase its acquisition bid and respects the decision of Core Scientific's shareholders [2] - Intrator emphasized that CoreWeave's strategic direction remains unchanged, focusing on creating long-term value through strategic acquisitions and prudent investments [2]

Glass Lewis在本月早些时候发布的报告中指出，此次收购在战略层面上对Core Scientific股东"具有一定 合理性"，因双方的结合可将数据中心业务与CoreWeave的AI云计算基础设施整合。但报告同时强调， 在AI投资热潮推动下，Core Scientific作为独立公司可能"拥有更大的上行潜力"，前提是公司能够充分抓 住不断增长的算力需求。ISS亦给出相似结论，建议股东拒绝该交易。 智通财经APP获悉，周四，美国数据中心运营商Core Scientific(CORZ.US)股价走高，截至发稿，该股涨 超6%，报22.08美元。CoreWeave(CRWV.US)跌超5%，报132.67美元。消息面上，Core Scientific股东在 特别股东大会上否决了人工智能基础设施公司CoreWeave提出的收购要约，结束了一场持续数月的收购 拉锯战。投票结果显示，该交易未能获得所需支持票数，Core Scientific宣布终止合并协议，并将继续 作为一家独立的上市公司运营。 这项交易最初于今年7月公布，CoreWeave曾计划以约90亿美元收购Core Scientific，作为其AI算力基础 ...

Financial Highlights - The company has colocation contracts that deliver compelling economics and strong margins[5] - The company's 12-year contracts with CoreWeave provide over $10 Billion in total contract value and approximately $850 Million in average annual run rate revenue[5] - CoreWeave is funding up to $1.5 Million per MW (or approximately $750 Million) of data center build out costs, credited against hosting payments[11] - Core Scientific is responsible for funding $104 Million of capex for the 70 MW expansion[11] Infrastructure and Power Capacity - The company has approximately 1.4 GW of existing gross power capacity, enabling approximately 1 GW of client-billable power across 9 U S sites[6] - The company has approximately 2.3 GW in existing and future gross power allocations from utility partners[9] - The company has approximately 1.5 GW in existing and future billable power available for colocation contracts[9] - The company is progressing approximately 1 GW of incremental capacity through targeted paid load studies[10] - Total potential expansion opportunities in aggregate are approximately 3.3 GW of gross power and approximately 2.2 GW of billable power[10] CoreWeave Contract Details - The CoreWeave infrastructure requires approximately 590 MW of infrastructure (~800 MW gross)[11] - The anticipated profit margin for the CoreWeave contracts is 75% to 80%[11] - Approximately 120+ MW are energized across Denton & Marble sites[16]

Core Scientific will remain public after it failed to secure the votes necessary to approve the $9 billion all-stock merger. ...