CoreWeave’s bid to acquire Core Scientific is facing substantial resistance from investors. The proposed acquisition, valued significantly lower than market expectations, has been questioned by Core Scientific’s largest shareholder, Two Seas Capital.
Background of the Acquisition Bid
CoreWeave announced its plan to acquire Core Scientific in July 2025. The deal involves a data center capacity of 1.3GW. However, as the shareholder vote approaches, scheduled for October 30, concerns regarding the transaction’s valuation have surfaced.
Two Seas Capital’s Challenge
Two Seas Capital has released an investor presentation urging shareholders to reject the acquisition. The firm argues the offer undervalues Core Scientific during a time of rising demand for AI infrastructure.
- Core Scientific stock has only increased by 9% since the announcement.
- CRWV stock has dropped by 15%.
- In contrast, stocks of similar companies like Applied Digital, Cipher Mining, and TeraWulf have surged, with some tripling or quadrupling in value.
According to Two Seas, if Core Scientific’s stock had kept pace with its weakest peer, it would currently trade around $45 per share. However, the proposed deal values the company at only $17.50 per share.
Voices of Opposition
Sina Toussi, founder and CIO of Two Seas Capital, has urged shareholders to vote against the transaction using the GOLD proxy card. He stated, “Core Scientific shareholders can realize further upside from owning one of the best assets in the AI landscape.”
CoreWeave’s Executive Changes
In a bid to enhance its market position, CoreWeave also appointed Jon Jones, a former Amazon executive, as its first Chief Revenue Officer. This role aims to stimulate growth in its AI cloud infrastructure, especially concerning generative AI workloads.
Market Reactions and Analyst Insights
On Wall Street, the consensus rating for CRWV stock remains a Moderate Buy. Recent data indicates:
- 14 Buy ratings
- 11 Hold ratings
- 2 Sell ratings
The average price target for CoreWeave stock is set at $152.60 per share, suggesting a potential upside of 17.51%.
As the shareholder vote date nears, the unfolding events surrounding CoreWeave’s acquisition bid for Core Scientific continue to create significant uncertainty in the market.
