Core Scientific's Largest Shareholder to Vote Against Sale to CoreWeave

Two Seas Capital opposes the $9 billion all-stock merger with CoreWeave, citing undervaluation concerns and exposure to stock volatility as Core Scientific pivots from Bitcoin mining to AI compute infrastructure.

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Summary

Core Scientific, formerly the largest Bitcoin miner in the U.S. now focused on AI compute infrastructure, is planning a $9 billion all-stock sale to CoreWeave. Two Seas Capital, holding a 6.3% stake and owning CoreWeave shares, opposes the merger due to concerns over undervaluation and the risks attached to an all-equity structure, underscored by a 30% share price drop after the deal announcement.

Terms & Concepts
  • Bitcoin miner: A company that validates Bitcoin transactions and secures the network by solving computational problems in exchange for rewards.
  • All-stock sale: A transaction in which the payment is made entirely in shares of the acquiring company's stock rather than cash.