Core Scientific’s Major Shareholder Opposes CoreWeave Acquisition
Overview
Two Seas Capital, which holds a 6.3% stake in Core Scientific, has voiced its disapproval of the proposed all-stock acquisition by AI cloud provider CoreWeave, emphasizing the deal’s unfavorable terms.
Key Details:
- Vote Against Acquisition: Two Seas plans to oppose the acquisition, deeming it both structurally flawed and undervalued.
- Call for Better Terms: The activist investor urges Core Scientific’s board to secure better offers, potentially even from CoreWeave, before they can support the merger.
Two Seas Capital is preparing to rally support among other shareholders to block the deal unless it sees significant enhancements in the terms of the acquisition.
Conclusions from Two Seas:
The current proposal is criticized for primarily benefitting CoreWeave while placing unnecessary risks on Core Scientific’s shareholders. In their statement, they noted that the deal undervalues Core Scientific and jeopardizes its market stance in high-performance computing.
Quote: “The proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk,” stated Sina Toussi, founder of Two Seas.
For more detailed insights, you can read about the proposed acquisition in the original article.
