Two Seas Capital, Core Scientific’s third largest shareholder (Colts) With 6.3% stake, it came out against the proposed acquisition of all shares of Bitcoin Miner by AI cloud provider CoreWeave (CRWV).
In a letter released Thursday, Two Seas said it intends to vote against the deal announced on July 7th and plans to do the same with other shareholders unless material changes are made.
The opposition centers on the unsold nature of the transaction in all shares. This argues that the two oceans unfairly support CoreWeave and does not reflect Core Scientific’s strategic position in high-performance computing. (HPC) Infrastructure.
“The proposed sales effectively underestimate the company and put its shareholders at unnecessary economic risk,” said Sina Toussi, founder of Two Seas.
Corz rose modestly at $14.24 on Thursday. This is significantly below what the stock was well below about $20 at the time of the purchase, which was proposed four weeks ago.
Since 2022, two oceans have supported Corz and have participated in post-bankruptcy restructuring and fundraising rounds. The company says it still believes in the long-term value of Core Scientific and prefers to remain independent if a better offer doesn’t appear.
It also noted that despite holding CoreWeave’s stock and supporting the idea of a combination, the two oceans were called the current deal, pointing to a 30% decline in Core Scientific’s stock after the announcement of the deal as evidence of investor concern.
The two oceans have urged the board to pursue alternative bids from CoreWeave, but only on terms that reflect the full strategic value of Core Scientific’s assets and growth outlook. The company will release further analysis in the coming weeks and engage with shareholders.
In a report published last month, analysts at Investment Bank KBW predicted that corescientific shareholders could push back terms of the transaction since CoreWeave’s initial failure and cash component shortages, and CoreWeave’s initial failure and cash component shortages.
read more: Comprehensive bid for Core Science that could elicit scrutiny of CoreWeave shareholders: KBW
