Two Seas Capital Expresses Enthusiasm for Core Scientific's Future Prospects

Rhea-AI Summary

Two Seas Capital (NASDAQ: CORZ) issued a letter on Oct 28, 2025 urging Core Scientific shareholders to vote AGAINST the proposed sale to CoreWeave (announced July 7, 2025). Two Seas says the deal values Core Scientific at $16.40 per share and argues that Core Scientific has materially higher standalone upside—claiming the stock would trade at more than twice the deal value if aligned with AI-infrastructure peers.

The letter highlights Core Scientific's access to low-cost power, operational expertise, and a 700-megawatt pipeline, and warns that approving the transaction would transfer value to CoreWeave. Shareholders face a vote at a special meeting on Oct 30, 2025.

Positive

• 700-megawatt pipeline under development
• Access to low-cost power and existing infrastructure
• Management confidence in securing additional HPC hosting contracts

Negative

• Proposed sale price of $16.40 per share could be viewed as shareholder value transfer
• Two Seas claims CORZ would trade more than 2x the transaction price if aligned with peers
• Shareholder vote on the transaction scheduled for Oct 30, 2025

News Market Reaction

+1.11%

22 alerts

+1.11% News Effect

+$72M Valuation Impact

$6.52B Market Cap

0.3x Rel. Volume

On the day this news was published, CORZ gained 1.11%, reflecting a mild positive market reaction. Our momentum scanner triggered 22 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $72M to the company's valuation, bringing the market cap to $6.52B at that time.

Data tracked by StockTitan Argus on the day of publication.

Issues Letter to Shareholders Highlighting Significant Upside Potential If Proposed Sale to CoreWeave Is Not Approved

Urges Shareholders to Vote AGAINST the Ill-Advised Transaction on the GOLD Proxy Card Ahead of October 30, 2025 Special Meeting

NEW YORK, Oct. 28, 2025 /PRNewswire/ -- Two Seas Capital LP ("Two Seas" or "we"), an alternative investment management firm and one of the largest shareholders of Core Scientific, Inc. ("Core Scientific" or the "Company") (NASDAQ: CORZ), today issued a letter to shareholders in connection with its opposition to the Company's proposed sale to CoreWeave, Inc. ("CoreWeave") (NASDAQ: CRWV) on the terms announced on July 7, 2025.

The full text of the letter is below.

October 28, 2025

Dear Fellow Core Scientific Shareholders:

As long-standing investors in Core Scientific, we are more enthusiastic than ever about Core Scientific's standalone prospects.  We continue to believe that the proposed acquisition of the Company by CoreWeave is not the best way to maximize value for Core Scientific shareholders. We will vote against the transaction and encourage you to do the same.

Since the transaction was announced in July, investment in AI infrastructure has accelerated, driving equity valuations of Core Scientific's peers to ever-greater heights. Had it traded in-line with these peers (instead of being tethered to CoreWeave's underperforming stock), Core Scientific's stock would be trading more than twice as high as the value of the CoreWeave transaction.

Why would anyone vote for a transaction worth a mere $16.40 per share?

Core Scientific is a best-in-class asset that we would be proud to continue to own: it has access to low-cost power, expertise in site construction and management, a strong existing infrastructure and an attractive future pipeline. We have full confidence in Core Scientific's executive management team and its ability to execute on these advantages. We therefore fully expect Core Scientific to continue to build out its 700-megawatt pipeline, secure additional hosting contracts for its growing HPC capacity and expand its footprint through the addition of other existing data centers and new brownfield sites—all to the great benefit of shareholders.

But first, we must reject the CoreWeave transaction.

The vote on that deal is scheduled for October 30, 2025. In our view, shareholders have an easy choice to make: reject the transaction and participate in one of the most incredible growth opportunities in the history of the capital markets or cut short Core Scientific's promising future to transfer significant value to CoreWeave.

In our view, there is no reason not to play on.

We therefore urge our fellow shareholders to join us in voting AGAINST the proposed transaction on the GOLD proxy card so that Core Scientific can return its full focus and attention to the numerous opportunities that lay ahead for one of the best assets in the rapidly growing AI landscape.

Sincerely,

Sina Toussi
Founder, President and Chief Investment
Officer Two Seas Capital LP

About Two Seas Capital LP

Two Seas, founded in 2020 and led by Chief Investment Officer Sina Toussi, specializes in event-driven investing anchored by rigorous fundamental research and a targeted focus on special situations. With approximately $2.0 billion in assets under management, Two Seas' approach is designed to uncover market inefficiencies where value can be realized through the resolution of legal and regulatory events. The Two Seas team is highly regarded for its rigorous due diligence and its ability to translate complex and dynamic scenarios into actionable investment opportunities.

Contacts

Investors
Scott Winter / Jonathan Salzberger
Innisfree M&A Incorporated
info@innisfreema.co
(212) 750-5833

Media
Steve Bruce / Taylor Ingraham / Keely Gispan
ASC Advisors
twoseas@ascadvisors.com
(203) 992-1230

Disclaimer

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any state to any person. This press release does not recommend the purchase or sale of a security. There is no assurance or guarantee with respect to the prices at which any securities of Core Scientific or CoreWeave will trade, and such securities may not trade at prices that may be implied herein. In addition, this press release and the discussions and opinions herein are for general information only, and are not intended to provide investment advice.

This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and may include projections and estimates and their underlying assumptions, statements regarding plans, objectives, intentions and expectations with respect to future financial results, events, operations, services, product development and potential, and statements regarding future performance. Forward-looking statements are generally identified by the words "expects", "anticipates", "believes", "intends", "estimates", "plans", "will be" and similar expressions. Although Two Seas believes that the expectations reflected in forward-looking statements contained herein are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties—many of which are difficult to predict and are generally beyond the control of Two Seas, Core Scientific or CoreWeave—that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. In addition, the foregoing considerations and any other publicly stated risks and uncertainties should be read in conjunction with the risks and cautionary statements discussed or identified in Core Scientific and CoreWeave's respective public filings with the U.S. Securities and Exchange Commission, including those listed under "Risk Factors" in annual reports on Form 10-K and quarterly reports on Form 10-Q and those related to the pending transaction involving Core Scientific and CoreWeave (the "Pending Transaction"). The forward-looking statements speak only as of the date hereof and, other than as required by applicable law, Two Seas does not undertake any obligation to update or revise any forward-looking information or statements. Certain information included in this material is based on data obtained from sources considered to be reliable. Any analyses provided to assist the recipient of this material in evaluating the matters described herein may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results. Accordingly, any analyses should not be viewed as factual and should not be relied upon as an accurate prediction of future results. All figures are unaudited estimates and, unless required by law, are subject to revision without notice.

Funds and investment vehicles (collectively, the "Two Seas Funds") managed by Two Seas currently beneficially own shares of Core Scientific and CoreWeave. The Two Seas Funds are in the business of trading (i.e., buying and selling) securities and intend to continue trading in the securities of Core Scientific and CoreWeave. You should assume the Two Seas Funds will from time to time sell all or a portion of their holdings of Core Scientific and/or CoreWeave in open market transactions or otherwise, buy additional shares (in open market or privately negotiated transactions or otherwise), or trade in options, puts, calls, swaps or other derivative instruments relating to such shares. Consequently, Two Seas' beneficial ownership of shares of, and/or economic interest in, Core Scientific and/or CoreWeave may vary over time depending on various factors, with or without regard to Two Seas' views of the Pending Transaction or Core Scientific and/or CoreWeave's respective businesses, prospects, or valuations (including the market price of Core Scientific and/or CoreWeave shares), including, without limitation, other investment opportunities available to Two Seas, concentration of positions in the portfolios managed by Two Seas, conditions in the securities markets, and general economic and industry conditions. Without limiting the generality of the foregoing, in the event of a change in Core Scientific and/or CoreWeave's respective share prices on or following the date hereof, the Two Seas Funds may buy additional shares or sell all or a portion of their holdings of Core Scientific and/or CoreWeave (including, in each case, by trading in options, puts, calls, swaps, or other derivative instruments). Two Seas also reserves the right to change the opinions expressed herein and its intentions with respect to its investments in Core Scientific and CoreWeave, and to take any actions with respect to its investments in Core Scientific and CoreWeave as it may deem appropriate, and disclaims any obligation to notify the market or any other party of any such changes or actions, except as required by law.

Important Information

Two Seas, Two Seas Capital GP LLC ("Two Seas GP"), and Sina Toussi ("Mr. Toussi" and, together with Two Seas and Two Seas GP, the "Participants") have filed a definitive proxy statement and GOLD proxy card (the "Proxy Statement") with the SEC on September 29, 2025 to be used to solicit proxies for votes against the proposed acquisition of Core Scientific by CoreWeave at the upcoming special meeting of the Company's shareholders. THE PARTICIPANTS STRONGLY ADVISE ALL SHAREHOLDERS OF THE COMPANY TO READ THE PROXY STATEMENT AND OTHER PROXY MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE AVAILABLE AT NO CHARGE ON THE SEC'S WEBSITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS WILL PROVIDE COPIES OF THE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST. Additional information about the Participants and a description of their direct or indirect interests by security holdings or otherwise can be found in Exhibit 2 of the Schedule 14A filed by Two Seas with the SEC on October 10, 2025.

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SOURCE Two Seas Capital

FAQ

What is Two Seas Capital urging CORZ shareholders to do at the Oct 30, 2025 vote?

Two Seas urges shareholders to vote AGAINST the proposed sale to CoreWeave on the GOLD proxy card at the Oct 30, 2025 special meeting.

What price does the proposed CoreWeave transaction value Core Scientific (CORZ) at?

The proposed transaction values Core Scientific at $16.40 per share.

When was the CoreWeave acquisition of Core Scientific announced?

The transaction terms were announced on July 7, 2025.

What operational assets does Two Seas highlight as reasons to keep CORZ standalone?

Two Seas cites access to low-cost power, site construction and management expertise, and a 700-megawatt pipeline.

How does Two Seas justify that CORZ has greater upside than the deal offers?

Two Seas states that if CORZ traded in line with AI-infrastructure peers, it would be worth more than twice the $16.40 per-share deal value.

Where can CORZ shareholders find the proxy to vote on the CoreWeave deal?

Two Seas recommends voting on the GOLD proxy card to register a vote against the proposed transaction.