Core Scientific and Proposed Merger with CoreWeave - Two Seas Capital LP supports ISS's recommendation for Core Scientific shareholders to vote "AGAINST" the proposed sale to CoreWeave, citing that the sale process did not maximize shareholder value [1][2][3] - The proposed merger is viewed as flawed due to a deficient structure and inadequate valuation, with ISS stating that the board's process was rushed and did not adequately explore alternatives [3][4][5] Valuation and Market Response - Since the announcement of the proposed merger, Core Scientific's share price has consistently closed at a double-digit premium to the offer, indicating that the market perceives the company's value to be higher than what CoreWeave is willing to pay [5][10] - The median premium of Core Scientific shares to the offer has been reported at 12.5% since the expiration of the CRWV IPO-related lockups [10] Shareholder Advocacy - Two Seas urges shareholders to reject the proposed transaction to unlock the potential value of Core Scientific, which is seen as one of the best assets in the AI landscape [2][3][6] - The upcoming special meeting for shareholders is scheduled for October 30, 2025, where the vote against the merger will take place [6]

Core Insights - CoreWeave launched Serverless RL, a managed reinforcement-learning platform, resulting in an 8.7% increase in shares [1] - The new service claims to offer 1.4 times faster training and 40% lower costs compared to local H100 GPU setups, potentially transforming the market [2] - CoreWeave's market capitalization is approximately $66.9 billion, reflecting its growth in the AI infrastructure sector [4] Company Developments - Since its public debut in March 2025, CRWV stock has attracted significant investor interest, peaking at $187 on June 20 before closing at $127.06 on October 20 [5] - Over the past month, CRWV shares have increased by 2%, driven by positive developments in the AI infrastructure market [6] - CoreWeave secured a $14.2 billion contract with Meta Platforms through 2031, a $6.3 billion agreement with Nvidia, and an up-to-$6.5 billion deal with OpenAI, enhancing revenue visibility and reducing risk [7]

Core Insights - The demand for computing power driven by artificial intelligence (AI) has led to significant sales growth for companies like Nebius Group and CoreWeave [1][2] - Nebius shares have increased over 300% this year, while CoreWeave's stock has more than tripled since going public at around $40 per share [1] CoreWeave's Performance - CoreWeave transitioned from cryptocurrency mining to providing AI-optimized infrastructure, resulting in second-quarter sales soaring to $1.2 billion from $395.4 million year-over-year [4] - Major clients such as OpenAI, Toyota Motor, and Microsoft have significantly increased their commitments to CoreWeave, with OpenAI raising its investment from $11.9 billion to $22.4 billion [5] - CoreWeave forecasts full-year sales between $5.2 billion and $5.4 billion, a substantial increase from $1.9 billion in 2024 [5] Financial Obligations and Expansion - CoreWeave's remaining performance obligations reached $30.1 billion in Q2, nearly double the $16.2 billion from the previous year [6] - The company incurred operating expenses of $1.2 billion in Q2, up from $317.7 million the previous year, due to investments in expanding data center capacity [6] - To finance its expansion, CoreWeave accumulated over $10 billion in debt, including a $1.8 billion senior notes offering and a $2.6 billion secured debt financing facility [7] Industry Demand - The global demand for AI computing capacity is driving triple-digit sales growth for both CoreWeave and Nebius Group in the second quarter [8] - Both companies are racing to expand their data center footprints while taking on significant debt to meet the escalating demand for AI compute [8]

Core观点 - CoreWeave's stock has increased over 240% since its IPO on March 28, 2025, and a potential catalyst for further movement is expected around November 12, 2025, when the company is likely to announce its Q3 financial results [1][2]. 分组1: 财务表现 - CoreWeave's Q3 revenue guidance is between $1.26 billion and $1.3 billion, with the average analyst estimate at approximately $1.28 billion [4]. - The company is projected to report a net loss of around $0.50 per share for Q3, and any significant positive deviation from these estimates could lead to a stock price increase [5]. - CoreWeave's revenue backlog reached $30.1 billion, reflecting an 86% year-over-year increase, not including a major contract signed in Q3 [6]. 分组2: 市场需求 - Demand for CoreWeave's GPUs continues to exceed supply, with accelerating customer demand potentially leading to further stock gains post-Q3 update [7]. - The stock's price-to-sales ratio is over 19x, indicating high growth expectations already priced into the stock [9]. 分组3: 投资者情绪 - Quarterly results announcements can lead to stock price volatility due to potential surprises, which can be either positive or negative [4]. - There is a risk that even if CoreWeave beats Wall Street estimates, the stock price may decline if results fall short of higher "whisper numbers" circulating among investors [10].

Core View - CoreWeave, Inc. (NASDAQ:CRWV) is highlighted as a notable AI stock this week, with Morgan Stanley maintaining an "Equal Weight" rating ahead of its earnings report in November, indicating cautious optimism about the company's performance [1] Company Overview - CoreWeave is a cloud platform provider that supplies equipment for AI and other computing applications, positioning itself within the growing AI sector [1] Market Sentiment - Morgan Stanley anticipates a high likelihood of CoreWeave exceeding guidance and consensus expectations, but notes challenges in surpassing elevated investor expectations, which contributes to their "Equal Weight" stance [1] Investment Considerations - While CoreWeave shows potential as an investment, there are other AI stocks perceived to offer greater upside potential and lower downside risk, suggesting a competitive landscape in the AI investment space [2]

Core Scientific and CoreWeave Acquisition Overview - A significant shareholder in Core Scientific, Trip Miller of Gullane Capital, opposes the proposed acquisition by CoreWeave, indicating he would vote against it in the upcoming shareholder meeting [1][2] - The acquisition, valued at approximately $5 billion, is critical for CoreWeave to sustain its rapid growth and manage rising costs [2][3] - Concerns have arisen regarding the undervaluation of Core Scientific due to fluctuations in stock prices, with the current offer reflecting a value below its market price [3][12] Shareholder Opposition - Two Seas Capital, holding about 6.3% of Core Scientific's stock, has publicly criticized the acquisition, stating it is not profitable enough for shareholders and urging a rejection in the upcoming vote [4][24] - Miller describes the deal structure as flawed, suggesting it undervalues Core Scientific shares compared to current trading prices [14][15] CoreWeave's Position - CoreWeave's CEO, Michael Intrator, defends the acquisition as the best option for Core Scientific shareholders, claiming it offers significant long-term value creation [5][6] - The acquisition is positioned as a strategic move to streamline operations and reduce costs, particularly in leasing data center space [21][22] Market Context and Financial Performance - CoreWeave has experienced rapid growth, achieving a market capitalization of $70 billion and significant revenue increases, but faces challenges with rising costs and declining operating margins [15][19] - The company reported a revenue of $1.2 billion in Q2, doubling year-over-year, but its operating margins fell from 20% to 2%, indicating profitability issues [19] - CoreWeave's debt has increased to $11.2 billion, raising concerns about high borrowing costs relative to its profit margins [20] Strategic Implications - The acquisition would allow CoreWeave to save approximately $10 billion in lease payments over 12 years by owning Core Scientific, which is crucial for its long-term business model [21][22] - Two Seas Capital argues that the initial offer undervalues Core Scientific's intrinsic and strategic value, suggesting that the company could be worth significantly more if left independent [24][25]

Core Viewpoint - Nvidia's holding concept stocks experienced a decline, with Coreweave, Applied Digital, and NEBIUS dropping over 7%, 9.4%, and 9.6% respectively [1] Group 1: Acquisition Details - Coreweave announced the acquisition of AI computing miner Core Scientific, based on a previously established all-stock agreement from July 7, emphasizing that the offer is "best and final" with no modifications [1] - The merger is presented as a secure and valuable path for future development, promising immediate premiums for shareholders and significant long-term growth potential [1] Group 2: Strategic Implications - Coreweave argues that if Core Scientific opts for independent operation, it would face substantial capital expenditures and execution risks [1] - The company is urging shareholders to support the transaction at the special shareholder meeting scheduled for October 30 [1]

Core View - Nvidia's related stocks experienced a decline, with Coreweave down over 7%, Applied Digital down over 9.4%, and NEBIUS down over 9.6% [1] Acquisition Details - Coreweave is set to acquire AI computing miner Core Scientific through an all-stock agreement reached on July 7, emphasizing that the offer is "best and final" with no modifications [1] - The merger is presented as a secure and valuable path for future development, promising immediate premiums for shareholders and significant long-term growth potential [1] Strategic Rationale - Coreweave argues that if Core Scientific opts for independent operations, it would face substantial capital expenditures and execution risks [1] - The company is urging shareholders to support the transaction at the special shareholder meeting scheduled for October 30 [1]

Core Scientific and CoreWeave Transaction Overview - Two Seas Capital LP, a significant shareholder of Core Scientific, opposes the proposed sale to CoreWeave, arguing that the transaction undervalues Core Scientific [1][2] - The letter emphasizes the growing demand for high-performance computing (HPC) assets driven by AI developments, indicating a favorable market environment for Core Scientific [2][3] Market Context and Comparisons - Since the announcement of the merger, there has been a surge in multi-billion-dollar deals in the data center sector, highlighting the increasing value of HPC assets [3][20] - Core Scientific's peers, including Applied Digital, Cipher Mining, and TeraWulf, have seen their stock prices triple since the merger announcement, contrasting with Core Scientific's modest 9% increase [4][5] Valuation Concerns - The current implied value of Core Scientific shares in the proposed transaction is approximately $17.50, significantly lower than the potential trading price if aligned with its peers [6][21] - Core Scientific's stock has consistently traded above the merger's implied value, indicating market skepticism about the deal [9][11] Shareholder Advocacy - Two Seas Capital urges shareholders to reject the proposed transaction, advocating for the potential upside of retaining Core Scientific as an independent entity [12][19] - The firm believes that Core Scientific has superior alternatives to the proposed merger, which does not reflect the company's true value in the current market [11][12]

Core Insights - The surge in demand for AI data center capacity has significantly benefited CoreWeave, leading to a substantial revenue backlog [1][7] - CoreWeave's revenue for Q2 2025 reached $1.2 billion, marking a 207% increase year-over-year, with a backlog of nearly $14 billion [7][10] - The company has secured major contracts with industry leaders such as OpenAI, Meta Platforms, and Nvidia, indicating strong future revenue potential [8][9] Company Overview - CoreWeave specializes in AI-focused data centers, operating 33 facilities powered by Nvidia's GPUs across the U.S. and Europe [5][6] - The GPU-as-a-service model allows customers to run AI workloads without the need for expensive hardware, enhancing cost efficiency [6] Growth Potential - CoreWeave's backlog has doubled in the first half of 2025, reflecting the high demand for AI cloud computing capacity [8] - The company is expected to convert its backlog into revenue as it expands its data center capacity, which currently stands at 470 megawatts with a contracted capacity of 2.2 gigawatts [11][12] Valuation and Market Position - CoreWeave's price-to-sales ratio is 19, which, while considered expensive, is significantly lower than Nvidia's valuation [16] - The anticipated growth trajectory suggests that CoreWeave could outperform consensus expectations, providing a solid long-term investment opportunity [15][19]