Core Scientific's Largest Shareholder Opposes CoreWeave Acquisition

Core Scientific's largest shareholder, Two Seas Capital LP, has announced its opposition to the $9bn acquisition proposed by CoreWeave. The alternative investment manager shared its dissatisfaction with the terms proposed on July 7, which would see AI cloud firm CoreWeave acquiring developer CoreScientific and its 1.3GW of data center capacity for $9bn in an all-stock transaction.

In a letter to shareholders, Two Seas noted its belief in Core Scientific's value and "clear runway to compound growth for many years." The company wrote: "We are therefore disappointed that the Board of Directors has chosen to sell the Company to CoreWeave, Inc. ("CoreWeave") at this inadequate valuation. The proposed all-stock, uncollared structure leaves Core Scientific shareholders exposed to the high volatility of CoreWeave's share price with no protections on the value they will receive at or following close."

"In our view, the transaction decidedly and unfairly favors CoreWeave at the expense of Core Scientific shareholders. The fact that Core Scientific's stock price declined by 30 percent in the days following the transaction announcement strongly suggests to us that other investors agree," Two Seas added.