Bitcoin miner Core Scientific opposes merger with CoreWeave

Two Seas Capital, a major CORZ shareholder, opposes the all-stock merger with CoreWeave, arguing it undervalues the bitcoin mining firm. The investor demands fair terms and strategic reassessment.

Deal undervalues the Bitcoin mining firm

A major shareholder in Core Scientific is pushing back against a high-profile crypto merger. Two Seas Capital, holding 6.3% of CORZ stock, has publicly opposed the proposed all-stock acquisition by AI cloud firm CoreWeave. The company plans to vote against the merger unless terms are improved.

Founder Sina Toussi claims the current structure unfairly benefits CoreWeave and exposes Core Scientific shareholders to unnecessary risk. Since the offer lacks a cash component and is uncollared, its value shifts with CRWV’s stock, creating volatility.

Independence or better terms

Two Seas has supported Core Scientific since 2022, participating in its post-bankruptcy financing rounds. It continues to believe in the company’s long-term value and prefers independence over an unfavorable deal.

Though it holds a stake in CoreWeave, Two Seas sees the proposed merger as poorly structured. Following the announcement, CORZ shares dropped 30%, signaling investor concern.

Analysts from KBW suggest Core Scientific shareholders may demand better terms, especially since the asset base has not changed since CoreWeave’s failed earlier offer. Two Seas intends to publish more analysis and rally other shareholders in the coming weeks.