To SEAS Capital, the third largest shareholder in core scientific (Corz) With a share of 6.3% has come out against Bitcoin Miner’s proposed acquisition of All-Stock from AI Cloud provider Coreweave (CRWV).
In a letter published on Thursday, Two Seas said it intends to vote against the agreement announced on July 7 and plans to gather other shareholders to do the same unless significant changes are made.
The opposition centers on the all-warehouse of transaction, the ambiguity of the transaction that two oceans argue unfairly to Coreweave and fails to reflect Core Scientific’s strategic position in high-praise (HPC) Infrastructure.
“The proposed sale underestimates the company significantly and unnecessarily exposes its shareholders to significant financial risk,” said Sina Toussi, founder of Two Seas.
Corz is modest in Thursday trading in $ 14.24, essentially below what they approx. $ 20 shares would have been worth at the time of the proposed acquisition four weeks ago.
Two SEAS has supported Corz since 2022, where they participated in their restructuring and financing rounds according to function. The company says it still believes in Core Scientific’s long -term value and prefers it will remain independent if a better offer does not occur.
Despite also having a share in Coreweave and supporting the idea of a combination, Two Seas called the current deal, which is on the basis of Core Scientific’s 30% stock fall following the agreement as proof of investors’ concern.
Two sea called on the board of directors to pursue alternative bids, including from Coreweave, but only on terms that reflect the full strategic value of core science assets and growth opportunities. The company plans to release further analysis and cooperation with shareholders in the coming weeks.
Analysts at Investment Bank KBW predicted that core scientific shareholders can push back on the terms of the agreement in view of the unchanged asset base since Coreweave’s first unsuccessful bid and the lack of a cash component in a report published last month.
Read more: Coreweaves All-Storage for Core Scientific that is likely to draw shareholder survey: KBW
