Core Scientific and CoreWeave Merger - Core Scientific shareholders rejected a $9 billion merger deal with CoreWeave due to insufficient votes for approval [1] - The merger was part of a trend among AI companies seeking power-rich infrastructure to support increasing computational demands [2] CoreWeave's Position and Financials - CoreWeave, backed by Nvidia, is an OpenAI partner providing AI infrastructure for advanced language model training [3] - CoreWeave secured a $6.3 billion order from Nvidia, which includes a commitment to purchase unsold capacity through April 2032 [3] Market Reaction - Following the merger rejection, CoreWeave's stock fell over 6% to close at $131.06, while Core Scientific's stock remained stable at $20.74 [4] Industry Context - Bitcoin mining has become increasingly complex and costly, leading miners to explore alternative fields such as AI [5] - Core Scientific shareholders felt the acquisition deal undervalued the company [6]

Group 1 - The article highlights a significant week for markets, with key events including the Federal Reserve's decision, multiple companies reporting earnings, and a U.S.-China trade deal [2] - Tech Contrarians, an investing group led by former technology sector engineers, offers institutional-level company research to individual investors, aiming to simplify technology sector investments [2] - The group provides a live portfolio with quarterly updates, bi-weekly newsletters, and daily Q&A sessions to enhance investor understanding [2] Group 2 - Tech Contrarians has achieved a realized return of 65.8% on closed positions since inception, indicating strong performance in their investment strategy [1]

Group 1 - Core Scientific held an Investor Update Call to discuss company performance and future outlook [2] - The call included a reminder that it is being recorded and participants are in listen-only mode [2] - Forward-looking statements were presented, indicating expectations and forecasts that may involve risks and uncertainties [3][4]

Core Insights - The article emphasizes the importance of identifying undervalued stocks that are mispriced by the market as a strategy for investment success by the end of October [1] Group 1: Company Overview - Stone Fox Capital is an RIA based in Oklahoma, led by Mark Holder, a CPA with extensive experience in investing and portfolio management [2] - Mark Holder has 30 years of investing experience, including 15 years as a portfolio manager, and leads the investing group Out Fox The Street [2] Group 2: Investment Strategy - The investing group provides stock picks and in-depth research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [2] - Features of the group include model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access for direct interaction with Mark [2]

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].