Largest Core Scientific Shareholder Expresses Disapproval of Proposed CoreWeave Purchase
In a recent development, Two Seas Capital LP, the largest shareholder of Core Scientific, has officially opposed the planned acquisition by CoreWeave. The $9 billion all-stock deal, announced on July 7, 2025, has been met with resistance due to concerns over the deal's undervalued nature and risky terms.
Two Seas Capital believes the deal undervalues Core Scientific and is structurally flawed, heavily favoring CoreWeave at the expense of Core Scientific shareholders. They argue that the all-stock nature of the transaction exposes shareholders to significant economic risk tied to CoreWeave’s volatile share price without adequate protections and does not fairly represent Core Scientific's strong position in high-performance computing and AI infrastructure.
Specifically, Two Seas calls the offer undervalued, asserting that Core Scientific’s scale, access to low-cost power, and market potential are worth more than reflected in the deal. They also believe there is no urgent need to sell now, given Core Scientific's strong market position and the rising demand for high-performance computing resources.
Two Seas is urging the Core Scientific board to seek better bids, possibly from CoreWeave itself with improved terms, and is mobilizing other shareholders to vote against the current deal. The firm welcomes other bids, stating, "The Board's job... is to ensure that any such deal happens at a price that reflects the strategic value."
Despite holding a stake in CoreWeave, Two Seas Capital LP believes the current deal unfairly favors CoreWeave. According to an August 7 release by Two Seas Capital LP, the deal "materially undervalues the company" and exposes shareholders to substantial economic risk.
As of 11:13 AM EDT, Core Scientific shares traded at $14.18, down 1.22% according to Yahoo Finance. The future of this deal remains uncertain as Two Seas Capital continues to advocate for a more favourable arrangement for Core Scientific shareholders.
- Investors in Core Scientific are exposed to substantial economic risk due to the undervalued nature and risky terms of the all-stock deal with CoreWeave, as Two Seas Capital LP believes.
- Amid the $9 billion all-stock deal announcement between Core Scientific and CoreWeave, Two Seas Capital LP argues that the deal does not fairly represent Core Scientific's strong dominance in high-performance computing and AI infrastructure.
- Despite holding a stake in both CoreWeave and Core Scientific, Two Seas Capital LP is advocating for better bids from potential buyers, including CoreWeave itself, to ensure a more equitable deal that reflects Core Scientific's overall value in the finance and business sectors.
