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NEW YORK - Two Seas Capital LP, one of Core Scientific Inc.’s (NASDAQ:CORZ) largest shareholders, issued a letter to shareholders today urging them to vote against the proposed acquisition by CoreWeave Inc. (NASDAQ:CRWV), claiming the deal significantly undervalues the company. Core Scientific, currently valued at approximately $6 billion, has demonstrated remarkable momentum with a nearly 200% price return over the past six months, according to InvestingPro data.
In its letter, Two Seas argued that Core Scientific shareholders have not benefited from the surge in equity values that has lifted other high-performance computing data center companies amid the AI infrastructure boom. The investment firm noted that while Core Scientific’s closest peers have seen their stock prices approximately triple since the deal announcement in July, Core Scientific’s stock has risen only 9%, tethered to CoreWeave’s stock, which has declined about 15% during the same period. InvestingPro analysis shows the stock trading near its 52-week high of $20.36, with analyst targets ranging from $17 to $31 per share, suggesting significant potential upside beyond the current deal terms.
"In the absence of the proposed transaction, had Core Scientific stock merely performed in-line with the Company’s worst-performing peer, it would be trading around $45 per share," Two Seas stated in its letter. "Instead, Core Scientific shareholders are being asked to convert their shares into CoreWeave’s volatile and underperforming stock at an implied value of just ~$17.50 per share." Based on comprehensive InvestingPro Fair Value analysis, Core Scientific appears undervalued at current levels. Get access to detailed valuation metrics and 12+ additional ProTips about CORZ through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.
Two Seas highlighted that Core Scientific’s stock has traded above the implied deal value for 44 consecutive trading days, indicating market skepticism about the merger. As of October 16, Core Scientific’s stock was trading 12% higher than the current deal value. The company maintains healthy liquidity with a current ratio of 1.79, indicating strong ability to meet short-term obligations.
The investment firm referenced recent multi-billion-dollar deals in the AI infrastructure space, including a $40 billion data center acquisition announced earlier this week, as evidence of the sector’s rapidly increasing valuations.
Two Seas has filed a definitive proxy statement with the SEC and is soliciting votes against the proposed acquisition at the upcoming special meeting of shareholders.
The information in this article is based on a press release statement from Two Seas Capital.
In other recent news, Core Scientific has been at the center of significant developments. The company recently released its second-quarter 2025 results, which showed that while revenue expectations were not met, adjusted EBITDA estimates were surpassed. Following these results, Jefferies raised its price target for Core Scientific to $22, maintaining a Buy rating. Meanwhile, CoreWeave has reaffirmed its commitment to acquiring Core Scientific, urging shareholders to support the transaction despite opposition from Two Seas Capital, which has filed a proxy statement urging a vote against the deal. CoreWeave’s CEO, Michael Intrator, confirmed there would be no revised bid, stating the current offer reflects the company’s valuation. JMP Securities reiterated its Market Outperform rating for Core Scientific, highlighting the company’s strategic shift toward high-performance computing as a positive development. These updates underscore the ongoing discussions and strategic shifts impacting Core Scientific and its stakeholders.
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