NVIDIA's favored child is not viable! Core Scientific's 'largest shareholder' rejects CoreWeave acquisition: $9 billion valuation is too low

The acquisition of Core Scientific by CoreWeave has faced opposition from Core Scientific's largest shareholder, Two Seas Capital. Two Seas Capital claims that the $9 billion valuation is too low, and the deal structure puts Core Scientific shareholders at risk. (Background: Wall Street is bullish on Bitcoin mining company Core Scientific, with its stock rising 60%: benefiting from AI computing power) (Supplementary Background: CoreWeave, dubbed as 'NVIDIA's favored child,' is reportedly looking to acquire Bitcoin mining company Core Scientific, causing CORZ stock to jump 33%) Two Seas Capital, the largest active shareholder in Bitcoin miner Core Scientific, issued a statement on August 8, clearly opposing Core Scientific’s acquisition agreement with the cloud and AI infrastructure company CoreWeave, known as 'NVIDIA’s favored child,' reached in July. Two Seas Capital criticized the deal for significantly undervaluing Core Scientific and believed that the all-stock transaction structure exposes shareholders to excessive economic risk. Reasons for Opposition to the Merger Two Seas Capital revealed in its announcement that it currently holds 19,122,842 shares of Core Scientific's common stock, accounting for about 6.3% of the company’s shares, making it Core Scientific's largest active shareholder. Two Seas Capital further pointed out that the company has invested in Core Scientific since 2022 and has long-term confidence in it. The reasons for Two Seas Capital's opposition to the acquisition are twofold: First, the transaction values Core Scientific at $9 billion, which is far below the true value of the company as a pioneer in High-Performance Computing (HPC) infrastructure, especially against the backdrop of surging demand for artificial intelligence (AI). Core Scientific has large-scale data centers, low-cost electricity, and a professional team, positioning it for long-term growth potential. Secondly, the all-stock, unprotected structure of the deal exposes shareholders to the risks of CoreWeave's stock price volatility. Following the announcement of the transaction, Core Scientific's stock price fell by 30%, indicating that the market has doubts about the valuation of this deal. Support for Independent Development and Welcoming Other Bidders Two Seas Capital emphasized that it supports Core Scientific continuing to operate as an independent company to fully capitalize on the opportunities of the AI era. The announcement stated: "As the demand for power and computing infrastructure increases at an unprecedented rate while supply remains scarce, we believe the company's most promising days are yet to come. We see no compelling reason to sell Core Scientific at a low valuation with an imperfect structure." At the same time, Two Seas Capital stated that it does not oppose Core Scientific being acquired but demands that the transaction price must reflect the strategic value of the company's assets, including potential synergies with buyers. The company welcomes other bidders, including CoreWeave, to participate in the bidding and calls on the board of directors to ensure that any transaction maximizes shareholder interests. Two Seas Capital plans to vote against this transaction and will mobilize other shareholders to oppose it. Acquisition Agreement between CoreWeave and Core Scientific On July 7 of this year, CoreWeave announced its acquisition of Core Scientific in an all-stock transaction valued at approximately $9 billion. Each share of Core Scientific common stock will be exchanged for 0.1235 shares of CoreWeave Class A common stock, valuing approximately $20.40 per share. This transaction was originally expected to be completed in the fourth quarter of 2025, aiming to allow CoreWeave to acquire approximately 1.3 GW of data center power capacity from Core Scientific to enhance its AI cloud service capabilities, with an expected annual cost saving of about $500 million. Related Reports The mining company Core Scientific signs a 12-year contract with an AI company! Estimated earnings exceed $3.5 billion. Can new listed crypto companies multiply tenfold? A paradigm shift for altcoins? AI startup Nscale plans to provide tens of thousands of NVIDIA GB200 chips for 'ByteDance', breaking the U.S. chip ban? "NVIDIA's favored child is not viable! Core Scientific's 'largest shareholder' rejects CoreWeave acquisition: $9 billion valuation is too low." This article was first published on BlockTempo (the most influential blockchain news media).