According to TechFlow news on October 16, Reuters reported that the board of cryptocurrency mining company Core Scientific (CORZ.O) urged shareholders to vote in favor of the proposed sale to AI infrastructure company CoreWeave (CRWV.O), believing that the deal will bring multiple benefits to the company.
CoreWeave announced plans in July to acquire Core Scientific for approximately $9 billion in an all-stock transaction, valuing the company at $20.40 per share. However, the deal faced opposition from Core Scientific's largest shareholder, Two Seas Capital. Two Seas Capital holds about 6.3% of the shares and claims that the deal "significantly undervalues" the cryptocurrency mining company's worth.
Core Scientific's board stated in Wednesday's investor presentation that it has "unanimously determined" that the transaction represents the best option for all shareholders. The board noted that the merged company will benefit from several potential cost savings and synergies while reducing Core Scientific's growth risks.