Two times Marine Capital, the third largest shareholder of Core Science (CORZ) Owning 6.3% of shares, already dealing with Bitcoin miners Proposed all-share acquisition AI cloud provider CoreWeave (coll).
exist Letter published ThursdayTwo Joahae said it intends to vote on the deal announced on July 7 and plans to assemble other shareholders to do the same unless it makes a major change.
The opposition focused on the whole share of the transaction, an uncompensated nature, two oceans believed unfairly favoring core weaving and failed to reflect the strategic position of core science in high performance computing (HPC) Infrastructure.
“The proposed sales essentially underestimate the company and unnecessarily expose its shareholders to substantial economic risks,” said Sina Toussi, founder of Two Seas.
Corz rose modestly in trading Thursday at $14.24, which is about $20 below the value of the stock at the time of the proposed acquisition four weeks ago.
Since 2022, Ocean has supported Corz twice, participating in subsequent restructuring and financing after bankruptcy. The company said it still believes in the long-term value of Core Scientific and it still hopes it remains independent if no better offer appears.
While also holding a stake in Coreweave and supporting the idea of a merger, the two oceans called the current deal incredible and pointed to a 30% decline in Core Scientific’s stock after the deal announcement, which is evidence investors are concerned about.
Two times Hai urged the board to pursue alternative bids, including from Coreweave, but only in terms of terms that reflect the full strategic value of Core Scientific assets and growth prospects. The company plans to release further analysis and interact with shareholders in the coming weeks.
Analysts at Investment Bank KBW predict that Core Science shareholders may postpone the terms of the deal in a report published last month, given Core Science shareholders’ first failed bid and lack of cash components.
Read more: CoreWeave’s all-stock bid could attract shareholder scrutiny: KBW
