Financial advisory firm Two Seas Capital LP has opposed the acquisition of Core Scientific by CoreWeave for $9 billion, citing risks and flaws in the deal.
Two Seas Capital's Protest
Two Seas Capital, the largest shareholder of Core Scientific owning about 6.3% of the company, has officially opposed the planned acquisition by CoreWeave, calling it risky and unfair.
Comments on the Deal
In its August 7 statement, Two Seas characterized the proposal as 'materially undervaluing the company' and unnecessarily exposing shareholders to significant economic risk. The firm highlighted that the all-stock structure of the deal is associated with CoreWeave's share price volatility.
Market Response and Future Plans
As of 11:13 AM EDT, Core Scientific shares traded at $14.18, down 1.22%. Two Seas plans to solicit shareholder votes against the deal unless terms improve and welcomes other bids.
Two Seas Capital's statements highlight significant disagreements among Core Scientific shareholders regarding the company's future amid the proposed deal.
