Core Scientific (CORZ) shares traded back around $18 today after CoreWeave (CRWV) disclosed a new commercial agreement with Meta in an 8-K, outlining a multi-year arrangement to provide AI compute services. The filing describes a long-term supply relationship and related financing steps tied to CoreWeave’s data center developments. Of note, Meta has agreed to pay CoreWeave up to $14.2 billion through December 2031.
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The $14.2 billion Meta agreement lands as CoreWeave pursues its previously announced all-stock acquisition of Core Scientific. Announced on July 7, the news was followed by an immediate drop in CORZ shares from over $18 per share to under $13 per share.
The transaction remains subject to Core Scientific stockholder approval and other customary conditions. Core Scientific has scheduled a special meeting for October 30 to vote on the merger.
However, a major shareholder challenge has emerged. Two Seas Capital, which owns 6.2% of Core Scientific, filed a definitive proxy and is urging investors to vote against the merger. The investor argues the board did not run a robust market check, and says the exchange terms undervalue Core Scientific relative to its data-center assets and AI colocation opportunity set.
In a Two Seas Capital press release put out Monday, the investor writes: “The market reaction to this mispriced and poorly structured deal was swift and negative. Core Scientific stock plunged 18% on the deal announcement, making it one of the worst one-day price declines for an M&A target this century.”
CoreWeave’s deal with Meta adds new commercial context ahead of that October 30 vote. For Core Scientific shareholders, the decision now hinges on whether to take the merger consideration and align with CoreWeave’s expanding AI customer base, or to remain independent amid rising demand for high-density compute capacity.
Read More: Two Seas Capital urges Core Scientific shareholders to block $9 billion CoreWeave deal
At time of publication, CORZ is up 5.3% from yesterday’s close and CRWV is up 14%.
