(Reuters) -Core Scientific’s board urged its shareholders on Wednesday to vote for the crypto miner’s proposed sale to CoreWeave as the company expects a number of benefits from the deal. CoreWeave announced its intention to buy Core Scientific in an all-stock deal valued at about $9 billion in July, valuing it at $20.40 per share. […]
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Core Scientific’s board asks shareholders to vote for CoreWeave deal
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(Reuters) -Core Scientific’s board urged its shareholders on Wednesday to vote for the crypto miner’s proposed sale to CoreWeave as the company expects a number of benefits from the deal.
CoreWeave announced its intention to buy Core Scientific in an all-stock deal valued at about $9 billion in July, valuing it at $20.40 per share. However, the proposed deal faces opposition from Two Seas Capital, the crypto miner’s biggest shareholder.
Two Seas Capital, which owns roughly 6.3% of Core Scientific, said in August it would vote against the sale as it “materially undervalues” the crypto miner and unnecessarily exposes its shareholders to substantial economic risk.
Core Scientific’s board has “unanimously determined” that the deal represents the best alternative for all its stockholders, it said in an investor presentation on Wednesday.
The combined company will benefit from several potential cost savings and synergies, while de-risking Core Scientific’s growth and providing upsides to the latter’s shareholders, according to the presentation.
CoreWeave provides access to data centers and Nvidia-powered AI chips to companies seeking to train large language models.
Bitcoin miners’ energy-intensive sites and power contracts, built during the crypto boom, have emerged as prime targets for AI companies expanding their computing infrastructure.
(Reporting by Juby Babu in Mexico City; Editing by Pooja Desai)