Latest news with #SinaToussi
Yahoo
07-08-2025
- Business
- Yahoo
Activist Two Seas Capital to oppose Core Scientific's sale to CoreWeave
-- Two Seas Capital LP, the largest active shareholder of Core Scientific, Inc., announced Thursday its opposition to the company's proposed sale to CoreWeave, Inc. on terms announced on July 7. Two Seas, which owns approximately 6.3% of Core Scientific with 19,122,842 shares, released an open letter to fellow shareholders explaining its stance against the transaction. In the letter, Two Seas founder Sina (BitStamp:SINA) Toussi expressed disappointment with the Board of Directors' decision to sell at what the investment firm considers an "inadequate valuation." The firm criticized the all-stock, uncollared structure of the deal, stating it leaves Core Scientific shareholders exposed to CoreWeave's share price volatility without value protections. While not philosophically opposed to a merger between the companies, Two Seas believes the current deal "materially undervalues" Core Scientific and "unnecessarily exposes its shareholders to substantial economic risk." The letter noted that Core Scientific's stock price declined by 30% in the days following the transaction announcement, suggesting other investors share similar concerns. Two Seas highlighted its belief in Core Scientific's potential to create substantial value in high-performance computing infrastructure, particularly as artificial intelligence drives increasing demand for energy and computing resources. The investment firm stated the company has "a clear runway to compound growth for many years." Unless the terms are revised to address what Two Seas considers structural shortcomings and inadequate consideration, the firm intends to vote against the transaction and plans to solicit other shareholders to do the same. Two Seas promised to share further perspectives and valuation work in the coming weeks. Related articles Activist Two Seas Capital to oppose Core Scientific's sale to CoreWeave Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
07-08-2025
- Business
- Yahoo
Bitcoin Miner Core Scientific's Third Largest Shareholder Opposes CoreWeave Deal
Two Seas Capital, the third largest shareholder in Core Scientific (CORZ) with a 6.3% stake, has come out against the bitcoin miner's proposed all-stock acquisition by AI cloud provider CoreWeave (CRWV). In a letter published Thursday, Two Seas said it intends to vote against the deal, which was announced July 7, and plans to rally other shareholders to do the same unless significant changes are made. The opposition centers on the all-stock, uncollared nature of the transaction, which Two Seas argues unfairly favors CoreWeave and fails to reflect Core Scientific's strategic position in high-performance computing (HPC) infrastructure. "The proposed sale materially undervalues the company and unnecessarily exposes its shareholders to substantial economic risk," said Sina Toussi, founder of Two Seas. CORZ is up modestly in Thursday trading at $14.24, substantially below what the roughly $20 the shares would have been worth at the time of the proposed acquisition four weeks ago. Two Seas has backed CORZ since 2022, participating in its post-bankruptcy restructuring and financing rounds. The firm says it still believes in Core Scientific's long-term value and prefers it remain independent if a better offer doesn't emerge. Despite also holding a stake in CoreWeave and supporting the idea of a combination, Two Seas called the current deal underwhelming and pointed to Core Scientific's 30% stock drop after the deal announcement as evidence of investor concern. Two Seas urged the board to pursue alternative bids, including from CoreWeave, but only at terms that reflect the full strategic value of Core Scientific's assets and growth prospects. The firm plans to release further analysis and engage with shareholders in the coming weeks. Analysts at investment bank KBW predicted that Core Scientific shareholders may push back on the terms of the deal, given the unchanged asset base since CoreWeave's first failed bid and the lack of a cash component, in a report published last in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
