Prnewswire·2025-10-17 13:00Core 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]