Core Scientific (CORZ) Shares Fall as Major Shareholder Stands Threat to $9-Billion Merger

We recently published 10 Stocks Facing a Total Meltdown. Core Scientific, Inc. (NASDAQ:CORZ) is one of the worst-performing stocks on Wednesday.

Core Scientific snapped a seven-day winning streak on Wednesday, shedding 8.34 percent to close at $13.85 apiece as investors resorted to profit-taking to take advantage of the previous days’ gains while also in a wait-and-see mode for developments on its proposed merger with CoreWeave Inc.

This followed a major shareholder’s opposition against the two firms’ planned merger, saying that it was disappointed over the “inadequate valuation.”

Two Seas Capital, which owns approximately 6.5 percent of Core Scientific, Inc. (NASDAQ:CORZ) and is also a shareholder of CoreWeave, said that the merger “leaves Core Scientific shareholders exposed to the high volatility of CoreWeave’s share price with no protections on the value they will receive at or following close.”

“From our perspective as a shareholder … the proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk. In our view, the transaction decidedly and unfairly favors CoreWeave at the expense of Core Scientific shareholders,” it said.

Under the terms of the agreement, Core Scientific, Inc. (NASDAQ:CORZ) stockholders will receive 0.1235 newly issued shares of CoreWeave Class A common stock for each share of Core Scientific common stock based on a fixed exchange ratio.

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