Two Seas Capital, the largest active shareholder of Bitcoin mining company Core Scientific, has announced its intention to vote against the buyout proposal from CoreWeave.
Two Seas Capital's Intentions
Investment firm Two Seas Capital, which holds a 6.5% stake in Core Scientific, stated its intention to oppose the $9 billion buyout offer proposed by CoreWeave. In a letter, shareholders commented:
> "The proposed sale materially undervalues the Company and unnecessarily exposes its shareholders to substantial economic risk. In our view, the transaction decidedly and unfairly favors CoreWeave at the expense of Core Scientific shareholders."
Reaction to CoreWeave's Offer
Following the release of the shareholder letter, shares of Core Scientific rose by 3% to $14.38. CoreWeave’s stock also saw a near 9% increase during intraday trading on the same day. CoreWeave had made several offers to acquire Core Scientific, including the latest $9 billion bid in July, which had been previously rejected as too low.
Market Future Prospects
CoreWeave continues to eye the acquisition of Core Scientific, which would allow it to significantly expand its data processing capabilities amid the growing demand for AI infrastructure. Two Seas Capital stated that Core Scientific "is uniquely positioned to meet this growing demand and has a clear runway to compound growth for many years."
The situation regarding Core Scientific and CoreWeave continues to evolve, as shareholders express their positions on the proposed deal that could significantly impact the market.
