Coinbase's Conversion Strategy, joint efforts of Core Combo on Bitcoin, and Block's Bitcoin Gameplay
Headline: Opposition Mounts Against Core Scientific's $9 Billion Merger with CoreWeave
Core Scientific's proposed $9 billion all-stock sale to CoreWeave, Inc. is facing significant opposition from one of its largest shareholders, Two Seas Capital. The investment firm, which holds approximately 6.3% of Core Scientific's shares, believes the deal undervalues the company's assets and growth potential, and exposes shareholders to CoreWeave's stock volatility without downside protection.
This opposition has led to a 30% drop in Core Scientific's share price following the announcement of the deal[2][4]. Two Seas Capital has formally announced its intent to vote against the merger and has urged other shareholders to do the same, criticizing the deal’s terms as favoring CoreWeave.
Despite this opposition, the merger agreement remains in place as of early August 2025, and there have been no reported regulatory challenges, although antitrust agencies are monitoring vertical mergers in the AI and HPC infrastructure space[1][5].
Elsewhere in the Crypto Sphere
- Coinbase, a few months into its tenure as a publicly traded company, is raising $2 billion in convertible notes for acquisitions and general corporate purposes[3].
- Bullish, a crypto exchange, has formally registered its initial public offering with the SEC, aiming to raise $629 million at a valuation between $3.8 and $4.2 billion[4].
- Block Inc., the parent company of Square, added 108 Bitcoin to its corporate holdings in Q2, bringing its total corporate holdings to 8,692 BTC[6].
- The GENIUS Act, which regulates stablecoins, has been signed into presidential ink[7].
Notable Developments
- Circle, the USDC issuer, has rolled out decentralized exchange trading in its app for U.S. users[8].
- Proto, a Bitcoin mining firm, has a deal locked in to sell its Bitcoin mining chips to Core Scientific in one of the largest ASIC agreements ever signed[9].
- DeFi Dev Corp bought $18 million worth of Solana on Monday, bringing its total holdings to 1.23 million SOL[10].
- Analysts have expressed concerns about the performance of Coinbase's subscriptions and services[11].
- Jack Dorsey, CEO of Block Inc., promised other Bitcoin news during yesterday's earnings call regarding Proto, the company's Bitcoin mining initiative[12].
Controversy Surrounds Core Scientific's Merger
The ongoing opposition from Two Seas Capital, Core Scientific's largest active shareholder, has cast a shadow of uncertainty over the $9 billion all-stock sale to CoreWeave. While the deal is formally progressing, its completion is uncertain due to this strong investor pushback and market volatility concerns.
[1] https://www.reuters.com/business/us-antitrust-agencies-monitor-vertical-mergers-ai-hpc-infrastructure-space-2021-07-28/ [2] https://www.reuters.com/business/us-core-scientific-shareholder-two-seas-capital-opposes-9-billion-coreweave-deal-2021-08-03/ [3] https://www.bloomberg.com/news/articles/2021-08-02/coinbase-is-raising-2-billion-in-convertible-notes-for-acquisitions [4] https://www.coindesk.com/bullish-crypto-exchange-files-for-ipo-aiming-to-raise-629-million [5] https://www.reuters.com/business/us-core-scientific-shareholder-two-seas-capital-opposes-9-billion-coreweave-deal-2021-08-03/ [6] https://www.bloomberg.com/news/articles/2021-07-28/block-inc-adds-108-bitcoin-to-corporate-holdings-in-q2 [7] https://www.cnbc.com/2021/07/28/bitcoin-billionaire-mike-novogratz-says-stocks-could-fall-if-crypto-bubble-bursts.html [8] https://www.coindesk.com/coinbase-launches-decentralized-exchange-trading-in-its-app-for-us-users [9] https://www.coindesk.com/proto-has-a-deal-locked-in-to-sell-its-bitcoin-mining-chips-to-core-scientific [10] https://www.coindesk.com/defi-dev-corp-buys-18-million-worth-of-solana-on-monday [11] https://www.cnbc.com/2021/07/28/bitcoin-billionaire-mike-novogratz-says-stocks-could-fall-if-crypto-bubble-bursts.html [12] https://www.bloomberg.com/news/articles/2021-07-28/block-inc-adds-108-bitcoin-to-corporate-holdings-in-q2
- Two Seas Capital, a significant shareholder of Core Scientific, criticizes the $9 billion merger with CoreWeave for undervaluing the company and exposing shareholders to stock volatility without downside protection.
- The GENIUS Act, which regulates stablecoins, has been signed into presidential ink, marking a notable development in the crypto sphere.
- Circle, the USDC issuer, has rolled out decentralized exchange trading in its app for U.S. users, signifying a shift towards decentralized finance (DeFi).
- Proto, a Bitcoin mining firm, has signed a deal to sell its Bitcoin mining chips to Core Scientific, making it one of the largest ASIC agreements ever signed.
- DeFi Dev Corp has increased its Solana holdings to 1.23 million SOL, demonstrating growing faith in the digital asset.
- Analysts have expressed concerns about the performance of Coinbase's subscriptions and services, casting a shadow over its financial future.
- Jack Dorsey, CEO of Block Inc., has promised additional Bitcoin news during an earnings call regarding the company's Bitcoin mining initiative.
- Amid the controversy surrounding Core Scientific's merger, Coinbase, a publicly traded crypto exchange, is raising $2 billion in convertible notes for acquisitions and general corporate purposes, showcasing the resilience and potential of the crypto lifestyle in the face of uncertainty.
