What's Happening?
CoreWeave's planned acquisition of Core Scientific, a bitcoin mining firm, is facing significant opposition from its largest active shareholder, Two Seas Capital. The firm has released a detailed presentation urging shareholders to reject the proposed
sale, arguing that the acquisition undervalues Core Scientific amid a booming demand for AI infrastructure. The deal, announced in July 2025, has seen CoreWeave's stock drop by 15%, affecting the implied value of the transaction. Two Seas Capital believes Core Scientific has better options than the current agreement and is encouraging shareholders to vote against the deal in the upcoming vote on October 30.
Why It's Important?
The pushback against CoreWeave's acquisition bid reflects broader concerns about the valuation and strategic implications of the deal. As demand for AI infrastructure continues to rise, the acquisition is seen as a critical move for CoreWeave to strengthen its position in the market. However, shareholder opposition highlights the risks associated with undervaluing assets in a rapidly growing industry. The outcome of the vote could significantly impact CoreWeave's growth trajectory and Core Scientific's future prospects, influencing investor confidence and market dynamics in the AI and data center sectors.
What's Next?
With the shareholder vote scheduled for October 30, the future of the acquisition remains uncertain. If shareholders reject the deal, CoreWeave may need to explore alternative strategies to expand its AI infrastructure capabilities. Core Scientific could benefit from remaining independent, potentially increasing its market value and exploring other growth opportunities. The decision will likely affect investor sentiment and shape the competitive landscape in the AI and data center industries.
