Core Viewpoint - Two Seas Capital LP supports the recommendations from leading proxy advisory firms ISS and Glass Lewis for Core Scientific shareholders to vote "AGAINST" the proposed merger with CoreWeave, citing inadequate compensation for shareholders and highlighting Core Scientific's standalone potential [1][2]. Proposed Merger Concerns - Glass Lewis criticized the proposed merger structure, indicating that it does not sufficiently protect Core Scientific shareholders from risks associated with CoreWeave's share price volatility [2][5]. - The absence of price protection mechanisms in the merger agreement leaves Core Scientific shareholders exposed to fluctuations in CoreWeave's stock price, which has shown significant volatility [5][10]. - Two Seas argues that the financial advisors' optimistic valuations of CoreWeave may not align with market realities, suggesting that the merger consideration undervalues Core Scientific [5][6]. Standalone Potential of Core Scientific - Two Seas emphasizes that Core Scientific possesses significant standalone value, particularly in the growing AI sector, and that the proposed merger does not reflect this potential [2][10]. - The analysis indicates that the implied value of the merger consideration has consistently fallen below the valuations provided by financial advisors, suggesting that shareholders may be better off rejecting the merger [10]. Shareholder Recommendations - Two Seas urges shareholders to follow the recommendations of ISS and Glass Lewis by voting against the merger to unlock Core Scientific's full potential [2][10]. - The persistent negative spread between Core Scientific's share price and the implied merger value indicates that investors value the company more highly as an independent entity [10].

Core Viewpoint - Riot Platforms has experienced a significant stock increase of 140% over the past year, driven by Bitcoin's rise to $110,000 and substantial infrastructure growth, leading to Bitcoin reserves exceeding $2 billion [2] Group 1: Market Capitalization and Stock Performance - Riot Platforms currently has a market capitalization of $6.5 billion and operates with a deployed hash rate of 36.4 EH/s, translating to a valuation of $179 million per EH/s, which is over 25% higher than MARA Holdings [2] - The company aims for a market cap of $13 billion, necessitating a 2x growth, which hinges on Bitcoin appreciation and hash rate expansion [3][4] Group 2: Growth Drivers - To achieve the target market cap, Bitcoin must appreciate to $160,000, representing a 45% increase, and the hash rate must expand to 65.7 EH/s by Q4 2026, indicating an 80% production rise from the current levels [4] - At a Bitcoin price of $160,000, Riot's treasury of 19,309 BTC would increase in value to $3.1 billion, contributing significantly to the target market cap [5] Group 3: AI Infrastructure and Operational Strategy - Riot's strategic pivot at the Corsicana facility involves repurposing 600 MW for AI/HPC data centers, which is expected to provide more reliable cash flows and higher-value revenue opportunities [6][7] - The facility's total capacity of 1 GW allows for flexibility in data center configurations to meet the growing demand for AI infrastructure [7] Group 4: Cost Efficiency and Operational Advantages - The company benefits from vertical integration via ESS Metron, achieving construction costs that are 15-20% below industry averages, alongside low electricity expenses of 2.6 cents per kWh [8] - Riot's dual-purpose infrastructure reduces reliance on Bitcoin price fluctuations while leveraging established operational expertise [8]