Two Seas Capital Throws Wrench in $9B Core Scientific AI Compute Mega-Deal

Hedge fund plays spoiler in what could've been the year's biggest AI infrastructure exit.

Two Seas Capital just lobbed a grenade into the boardroom—filing to block Core Scientific's proposed $9 billion sale. The AI compute firm was primed to cash in on the machine learning gold rush, but now faces a shareholder revolt.

Wall Street's latest 'strategic move' smells like another play for leverage. Because nothing says 'maximizing shareholder value' like derailing a surefire payday to squeeze out extra basis points.

Two Seas Capital against any Core Scientific sale

Two Seas Capital has presented itself as a committed investor and an advocate of Core Scientific since 2022. The company is an active investor and has also raised its equity stake since then.

Moreover, the investment firm stated that it’s not opposed to a CoreWeave merger as such. In fact, the firm also owns CoreWeave shares. It is just opposed to the merger at the current valuation.

Originally launched as a Bitcoin mining firm, Core Scientific capitalized on the crypto bull market and went public in January 2022 at a $4.3 billion valuation. However, the subsequent market downturn led to bankruptcy and a strategic shift toward AI compute infrastructure.