What's Happening?
CoreWeave's proposed acquisition of bitcoin mining firm Core Scientific is encountering significant resistance from Core Scientific's largest active shareholder, Two Seas Capital. The acquisition, announced in July 2025, is valued at $1.3 billion and
involves a data center acquisition. Two Seas Capital has released an investor presentation urging shareholders to reject the deal, arguing that it undervalues Core Scientific, especially given the current high demand for AI infrastructure. The shareholder vote on the acquisition is scheduled for October 30. Two Seas Capital points out that while stocks of similar companies have seen substantial increases, Core Scientific's stock has only risen by 9%, and CoreWeave's stock has dropped by 15%, affecting the deal's implied value. Two Seas Capital's founder, Sina Toussi, advocates for rejecting the transaction to allow Core Scientific shareholders to benefit from the company's potential in the AI sector.
Why It's Important?
The pushback against CoreWeave's acquisition bid highlights the growing importance of AI infrastructure in the tech industry. The resistance from Two Seas Capital underscores the belief that Core Scientific holds significant value in the AI landscape, which could be better realized through alternative strategies rather than the current acquisition proposal. This situation reflects broader market dynamics where companies involved in AI and related technologies are experiencing rapid valuation changes. The outcome of this shareholder vote could influence future acquisition strategies and valuations in the tech sector, particularly for companies involved in AI and data infrastructure.
What's Next?
The upcoming shareholder vote on October 30 will be a critical moment for both CoreWeave and Core Scientific. If the acquisition is rejected, Core Scientific may explore other strategic options to capitalize on its position in the AI infrastructure market. Meanwhile, CoreWeave's appointment of Jon Jones as its first chief revenue officer indicates its commitment to expanding its AI cloud infrastructure business, regardless of the acquisition's outcome. The decision will likely impact the stock performance of both companies and could set a precedent for future mergers and acquisitions in the tech industry.
