(Reuters) – On Wednesday, the board of Core Scientific advocated that its shareholders support the proposed acquisition by CoreWeave, highlighting several anticipated advantages stemming from the agreement.
In July, CoreWeave revealed its plans to acquire Core Scientific in a stock deal estimated at approximately $9 billion, setting the share price at $20.40. Nevertheless, the proposed acquisition has met resistance from Two Seas Capital, Core Scientific’s largest shareholder.
Owning around 6.3% of Core Scientific, Two Seas Capital announced in August its intention to oppose the acquisition, claiming it “significantly undervalues” the company and poses unnecessary economic risks to shareholders.
In an investor presentation on Wednesday, Core Scientific’s board asserted that they have “unanimously concluded” that the transaction is the optimal choice for all stockholders involved.
The merger is anticipated to yield numerous potential cost efficiencies and synergies, while simultaneously reducing risks for Core Scientific’s growth and creating additional value for its shareholders, according to the presentation.
CoreWeave specializes in offering access to data centers and Nvidia AI chips for enterprises aiming to develop large language models.
The energy-intensive operations and power agreements established during the cryptocurrency surge have become appealing targets for AI firms looking to broaden their computing capabilities.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)
