Two Seas Capital Opposes Core Scientific Acquisition
Two Seas Capital, the primary active investor in Bitcoin mining firm Core Scientific, has declared its opposition to the proposed acquisition by AI infrastructure entity CoreWeave. Holding a 6.5% equity stake in Core Scientific, the firm criticized the $9 billion valuation settled upon in July, arguing that it does not represent a fair assessment of the company’s worth.
“This proposed sale significantly undervalues the Company and places its shareholders at considerable financial risk. We contend that this agreement disproportionately benefits CoreWeave, to the detriment of Core Scientific’s investors. The observed 30% drop in Core Scientific’s stock following the announcement reflects a broader consensus among investors who share our concerns.”
CoreWeave’s Acquisition Plans
CoreWeave has had its sights set on acquiring Core Scientific since 2024, with onlookers from the investment community eagerly awaiting further developments regarding the agreement between the two firms. Currently, CoreWeave utilizes data centers leased from Core Scientific, and a complete acquisition would allow it to enhance its data center capabilities drastically to cater to the increasing demands for artificial intelligence infrastructure.
“As the necessity for AI training and inference accelerates, the demand for both energy and high-performance computing infrastructure has risen dramatically. Core Scientific is uniquely equipped to address this burgeoning need and has significant growth potential moving forward.”
Market Reactions
Following the release of the shareholder letter, Core Scientific’s stock experienced a slight uptick, rising 3% to reach $14.38. Meanwhile, CoreWeave’s share price also demonstrated a healthy response, climbing nearly 9% during intraday trading on Thursday. CoreWeave has previously made multiple offers to purchase Core Scientific, including the latest bid of $9 billion, all of which were turned down as being insufficient.
The negotiations saw a resurgence in June, propelling Core Scientific’s stock up by more than 23% in a single day, although it receded in July. Currently, CoreWeave boasts a market capitalization exceeding $58.1 billion, whereas Core Scientific holds a market valuation of over $4.3 billion at this writing.
