Key investors in Core Scientific have voiced their opposition to the proposed merger with CoreWeave, citing valuation concerns and a lack of clarity surrounding the deal’s structure. Jefferies, anticipating a shareholder vote rejection, suggests this move will significantly impact both companies’ dynamics. This potential disruption could affect the stability of the U.S. bitcoin mining sector as a whole. Core Scientific shareholders are expected to reject the merger, with leading proxy advisors like ISS and Two Seas Capital expressing significant disapproval. 20% of the company is at stake with institutional investors concerned about the proposed deal’s undervaluation and structure. Concerns around valuation and the deal’s structure have resulted in a notable decline in stock price (18% lower implied offer price for CORZ shares) according to Jefferies, leading to speculation that Core Scientific will need to re-strategize if this merger doesn’t go through. Institutional advice has significantly impacted investor opinion, with ISS recommending shareholders vote against the deal. Historical examples of mining mergers suggest a shift towards operational efficiency over traditional consolidation models could be on the horizon. CEO of CoreWeave, Michael Intrator, remains optimistic about the deal’s long-term value for both companies despite this backlash.