Core Scientific Inc. (NASDAQ:CORZ) reported a fourth-quarter adjusted loss of 29 cents, missing the consensus of 18 cents.
Earnings Snapshot
Quarterly sales fell from $94.9 million to $79.76 million, missing the consensus of $105.71 million.
“We’re now past the halfway point on our existing builds and scaling our colocation platform into a 1.5 gigawatt pipeline of leasable capacity,” said Adam Sullivan, CEO of Core Scientific.
“With a multi-geography footprint and proven execution, we’re accelerating RFS timelines across multiple sites to position the company for durable growth,” Sullivan added.
Colocation revenue was $31.3 million, up from $8.5 million a year ago, due to the expansion of colocation operations.
Digital asset self-mining revenue was $42.2 million, down from $79.9 million, primarily driven by a 57% decrease in bitcoin mined.
20% increase in the average bitcoin price partially offset the decline in sales. Digital asset-hosted mining revenue was $6.3 million.
Analyst View
Cantor analyst Brett Knoblauch reiterated the Overweight rating, but lowered the price forecast from $26 to $25, incorporating a lower value for its Bitcoin mining business.
Near-term results reflect both the company’s Bitcoin mining economics and the ongoing ramp of its AI infrastructure for CoreWeave Inc. (NASDAQ:CRWV).
Analyst Knoblauch says investor attention should be focused on the pace of MW energization for CoreWeave, additional customer announcements, and power pipeline expansion.
HC Wainwright reiterated the Buy rating on Core Scientific with a price forecast of $25.
Analyst Kevin Dede said the company's bitcoin mining is expected to become secondary as colocation ramps up.
Dede noted that 350MW is now energized for CoreWeave, with nearly 200MW already billing.
That puts Core Scientific more than halfway toward fulfilling its 590MW, $10 billion-plus, 12-year agreement with CoreWeave.
The company remains on track to deliver the full 590MW by early 2027, Dede added.
Core Scientific Technical Analysis
Currently, the stock is trading 5.2% below its 20-day simple moving average (SMA), indicating a bearish trend in the short term.
Over the past 12 months, shares have decreased significantly, and they are positioned closer to their 52-week lows than highs, reflecting ongoing challenges.
The RSI is at 50, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time.
Meanwhile, MACD is at 0.00, indicating a lack of momentum, which could signal further bearish pressure on the stock.
The combination of neutral RSI and bearish MACD suggests mixed momentum, indicating that traders should be cautious in their approach.
- Key Resistance: $17.00
- Key Support: $14.00
CORZ Price Action: Core Scientific shares were down 5.46% at $15.59 at the time of publication on Tuesday, according to Benzinga Pro data.
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