Why CoreWeave Stock Plunged Today

Core Acquisition Risk - CoreWeave plans to acquire Core Scientific to enhance its high-performance data center infrastructure, but the deal is at risk due to investor reactions [1][3] - The acquisition has a total equity value of approximately $9 billion and is structured as an all-stock deal to avoid additional debt [3] Financial Performance and Investment - CoreWeave is investing heavily in its internal business, with plans to invest over $6 billion in a new data center in Pennsylvania [4] - Following a disappointing quarterly report on August 12, CoreWeave's stock has dropped nearly 40% since the earnings release [4] Shareholder Opposition - The all-stock structure of the acquisition makes it vulnerable to falling share prices, leading to opposition from at least one large shareholder of Core Scientific [5] - Two Seas Capital, the largest active shareholder of Core Scientific, owns about 6.3% of the company and has publicly opposed the deal, which could lead to costly renegotiations for CoreWeave [6]