Core Scientific, Inc. (NASDAQ: CORZ) saw its stock soar 5.06% in intraday trading on Thursday, following the announcement that its proposed merger with CoreWeave has been terminated. The unexpected turn of events came after Core Scientific failed to secure the necessary shareholder votes to approve the previously announced $9 billion all-stock transaction.

According to a statement from Core Scientific, the company did not receive the requisite number of votes at a special meeting of stockholders to approve the merger agreement with CoreWeave. As a result, Core Scientific has terminated the merger agreement effective immediately. The company will remain publicly traded, with its common stock continuing to trade on Nasdaq under the ticker symbol CORZ.

The market's positive reaction to the news suggests that investors may prefer Core Scientific to remain an independent entity. Some shareholders, including investment management firm Two Seas Capital, had urged fellow Core Scientific stockholders to reject the deal, citing concerns about mispricing and poor structure. Additionally, proxy advisory firms Institutional Shareholder Services and Glass Lewis & Co. had recommended shareholders vote against the proposed sale to CoreWeave.

Despite the termination of the merger agreement, both companies have expressed their intention to continue their existing commercial partnership. Michael Intrator, co-founder, chairman, and chief executive of CoreWeave, stated that the company respects the views of Core Scientific's stockholders and will continue to focus on their ongoing collaboration.

As Core Scientific moves forward as an independent company, it will likely continue to focus on its position as a leader in digital infrastructure for high-density colocation services and digital asset mining. The company's ability to adapt to market demands, particularly in the growing field of artificial intelligence-related workloads, may have contributed to investors' optimism following the merger's cancellation.