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Core Scientific Inc (CORZ)
:CORZ
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Core Scientific Inc
(NASDAQ:CORZ)
40Underperform
Positive Factors
Revenue Growth
The contract expansion with CoreWeave is expected to generate $1.2B of additional revenue, bringing total project revenue to $10.2B over the 12-year contract terms.
Negative Factors
Delayed Deployments
There is a delay in HPC deployment, pushing expectations for 250MW of power to be energized by year-end, affecting revenue estimates.
Valuation Concerns
CORZ is trading at a valuation that suggests significant downside relative to its 2026 EBITDA estimates.
Core Scientific Inc (CORZ) vs. S&P 500 (SPY)
Market Cap
$2.54B
Dividend YieldN/A
Average Volume (3M)15.70M
Price to Earnings (P/E)―
Beta (1Y)4.13
Revenue Growth1.65%
EPS Growth-700.27%
CountryUS
Employees286
SectorGeneral
Sector StrengthN/A
IndustrySoftware
Share Statistics
EPS (TTM)-5.54
Shares Outstanding294,122,600
10 Day Avg. Volume26,787,354
30 Day Avg. Volume15,704,398
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.97
Price to Cash Flow (P/CF)46.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$19.30Price Target Upside123.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Core Scientific Inc Business Overview & Revenue Model
Company DescriptionCore Scientific Inc (CORZ) is a leading provider of high-performance infrastructure and software solutions for blockchain and artificial intelligence applications. Operating in the technology and data sectors, the company specializes in offering large-scale digital asset mining services and blockchain hosting solutions. Core Scientific is committed to harnessing the power of blockchain technology to drive innovation and support the digital economy.
How the Company Makes MoneyCore Scientific Inc makes money primarily through its digital asset mining operations and hosting services. The company operates large-scale data centers where it mines cryptocurrencies like Bitcoin, generating revenue from the digital assets produced. Additionally, Core Scientific provides hosting services for third-party clients who own mining equipment but require infrastructure to operate their machines. These clients pay fees for the use of Core Scientific's facilities, power, and management services. The company's revenue is also supported by strategic partnerships and collaborations with technology firms and blockchain networks that enhance its service offerings and operational efficiency.
Core Scientific Inc Financial Statement Overview
Summary
Core Scientific Inc. faces significant financial challenges, with ongoing profitability issues and financial instability. The income statement reveals negative net income and EBIT, while the balance sheet shows negative equity and high leverage. Despite positive operating cash flow, free cash flow remains negative, indicating cash generation issues.Income Statement
The income statement shows persistent challenges with profitability, as evidenced by negative net income and EBIT across the years. The gross profit margin in the latest year was 23.71%, reflecting a decline from previous years. Revenue growth has been inconsistent, with a significant drop in 2022. The net profit margin is negative, indicating profitability issues.35
Negative
Balance Sheet
The balance sheet highlights financial instability with negative stockholders' equity and high leverage. The debt-to-equity ratio is not calculable due to negative equity. ROE is negative, reflecting losses. The equity ratio is also negative, indicating a concerning financial structure.30
Negative
Cash Flow
Cash flow analysis shows some operational resilience with positive operating cash flow, but the company struggles with free cash flow, which remains negative. The free cash flow to net income ratio is unfavorable, pointing to cash generation issues relative to net losses.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 510.67M | 502.40M | 640.31M | 544.48M | 60.32M | Gross Profit |
| 121.07M | 123.46M | 8.40M | 238.86M | 9.39M | EBIT |
| -19.20M | 8.96M | -244.57M | 166.64M | -10.40K | EBITDA |
| -1.16B | -63.12M | -1.84B | 167.61M | -10.40K | Net Income Common Stockholders |
| -1.32B | -246.49M | -2.15B | 47.31M | -10.40K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 836.20M | 50.41M | 52.24M | 131.68M | 8.67M | Total Assets |
| 1.60B | 712.16M | 807.69M | 2.44B | 225.58M | Total Debt |
| 1.20B | 865.54M | 37.73M | 818.81M | 40.29M | Net Debt |
| 363.57M | 815.14M | -14.51M | 687.13M | 31.62M | Total Liabilities |
| 2.42B | 1.31B | 1.22B | 1.05B | 136.35M | Stockholders Equity |
| -820.18M | -596.94M | -409.35M | 1.39B | 89.22M |
| Cash Flow | Free Cash Flow | |||
| -52.06M | 48.95M | -178.79M | -116.01M | -25.33M | Operating Cash Flow |
| 42.90M | 65.11M | 205.19M | -56.73M | -23.77M | Investing Cash Flow |
| -95.19M | -3.00M | -590.78M | -423.84M | -15.14M | Financing Cash Flow |
| 819.57M | -44.65M | 306.15M | 603.53M | 40.72M |
Core Scientific Inc Technical Analysis
Negative
8.63
Price Trends
12.33
Negative
13.84
Negative
11.88
Negative
Market Momentum
-1.18
Positive
37.21
Neutral
34.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CORZ, the sentiment is Negative. The current price of 8.63 is below the 20-day moving average (MA) of 10.31, below the 50-day MA of 12.33, and below the 200-day MA of 11.88, indicating a bearish trend. The MACD of -1.18 indicates Positive momentum. The RSI at 37.21 is Neutral, neither overbought nor oversold. The STOCH value of 34.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CORZ.
Core Scientific Inc Risk Analysis
Core Scientific Inc disclosed 77 risk factors in its most recent earnings report. Core Scientific Inc reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Core Scientific Inc Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $2.70B | 22.42 | 4.35% | ― | 34.20% | ― | |
55 Neutral | $4.61B | 9.55 | 18.84% | ― | 69.38% | 30.30% | |
54 Neutral | $4.56B | -16.15 | -11.85% | 4.78% | 31.69% | -53.77% | |
49 Neutral | C$1.77B | 3.66 | 2.56% | ― | 199.41% | ― | |
44 Neutral | $724.20M | ― | -31.62% | ― | 45.19% | -33.48% | |
40 Underperform | $2.54B | ― | 160.33% | ― | 1.65% | -700.27% | |
37 Underperform | $31.32M | ― | 242.25% | ― | ― | ― |
* General Sector Average
Performance Comparison
CORZ
Core Scientific Inc
8.95
5.63
169.58%
RIOT
Riot Platforms
7.85
-3.88
-33.08%
MARA
Marathon Digital Holdings
13.11
-6.59
-33.45%
TSE:BITF
Bitfarms
1.68
-1.50
-47.17%
TSE:HUT
Hut 8
17.46
7.04
67.56%
ARBK
Argo Blockchain
0.40
-1.36
-77.27%
Core Scientific Inc Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -13.87% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements, including a major HPC hosting contract and improved capital structure, indicating a strategic shift towards becoming a leading data center business. However, these highlights were tempered by revenue declines, increased net loss, and operational delays. While the company is positioned for growth, the challenges reflect transitional hurdles.Highlights
Landmark HPC Hosting Contract
Secured a 12-year agreement with CoreWeave, with a total revenue potential of $8.7 billion, equivalent to about $725 million per year once fully online. This is a significant increase from the company's total revenue of just over $500 million in 2024.
Expansion of HPC Infrastructure
Expanded HPC infrastructure capacity by reallocating resources from Bitcoin mining operations, enlarging existing sites, and acquiring new sites. Ended the year with over 1,300 megawatts of contracted power.
Improved Capital Structure
Reduced total debt by $270 million as part of a Chapter 11 debt restructuring and completed a $625 million convertible note offering at a 0% interest rate, entering 2025 with over $830 million in cash.
Strategic Hires
Hired top-tier data center professionals with a proven track record, significantly strengthening leadership and execution capabilities.
Lowlights
Decline in Revenue and Bitcoin Mining
Total revenue decreased by 33% year-over-year, and digital asset self-mining revenue declined by 29% due to a decrease in Bitcoin earned, partially offset by a 130% increase in Bitcoin prices.
Net Loss and Operating Expenses
Reported a net loss of $265 million for Q4 2024, compared to a net loss of $195.7 million in the prior year. Operating expenses increased to $43.6 million from $30 million the previous year.
Delayed HPC Deployment
Delayed delivery of one 40-megawatt building to early 2026 due to permitting and supply chain challenges, impacting the planned ramp schedule.
Company Guidance
During Core Scientific's fourth-quarter fiscal year 2024 earnings call, the company provided detailed guidance emphasizing its strategic focus on expanding its High-Performance Computing (HPC) hosting capacity and diversifying its customer base. The company highlighted a significant 12-year agreement with CoreWeave, which promises a total revenue potential of $8.7 billion over the contract term, achieving approximately $725 million per year. In 2024, Core Scientific's total revenue was just over $500 million, indicating substantial growth potential from the new contract. The company reported a total contracted power of over 1,300 megawatts by year-end, with plans to expand its Denton site by nearly 100 megawatts. Moreover, Core Scientific aims to reduce its largest customer to less than 50% of total critical IT load by the end of 2028, signaling a commitment to customer diversification. On the financial side, the company ended the year with $830 million in cash and noted a significant reduction in total debt, which positions it well to execute its growth strategy. Additionally, the call detailed a net loss of $265 million for the fourth quarter and an adjusted EBITDA of $13.3 million, with a focus on continuing its expansion and capitalizing on new opportunities in the HPC market.Core Scientific Inc Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Core Scientific Appoints New CFO James P. Nygaard
Positive
Mar 4, 2025
On March 2, 2025, Core Scientific announced the appointment of James P. Nygaard, Jr. as Executive Vice President and Chief Financial Officer, effective March 17, 2025. Nygaard brings nearly 30 years of investment banking experience, having previously served as Managing Director at XMS Capital Partners and CFO of Power & Digital Infrastructure Acquisition Corp. This transition follows the resignation of Denise Sterling, who played a critical role in stabilizing the company during its restructuring and emergence from Chapter 11. Nygaard’s expertise is expected to help Core Scientific continue scaling its operations and enhancing shareholder value.
Business Operations and Strategy
Core Scientific Expands Denton Facility with CoreWeave
Positive
Feb 27, 2025
On February 26, 2025, Core Scientific, Inc. announced an agreement with CoreWeave, Inc. to expand its Denton, Texas facility by 70MW, bringing the total contracted HPC infrastructure to approximately 590MW across six sites. This $1.2 billion expansion solidifies Core Scientific’s position as a premier provider of application-specific data centers for HPC workloads, with a total contracted revenue of $10.2 billion over 12 years. The expansion aims to meet the growing demand for scalable, high-power data center solutions, particularly for NVIDIA GPU operations, and further positions Core Scientific as a leader in the high-performance compute data center space.
Private Placements and FinancingFinancial Disclosures
Core Scientific Inc Reports Q4 2024 Financial Loss
Negative
Feb 26, 2025
Core Scientific, Inc. reported a net loss of $265.5 million for the fiscal fourth quarter of 2024, largely due to a $224.7 million non-cash mark-to-market adjustment related to warrants and contingent value rights. Despite the financial loss, the company secured $625 million through a convertible note offering and expanded its infrastructure capacity to 1,300 MW, positioning itself for future growth in HPC and bitcoin mining operations.
Business Operations and Strategy
Core Scientific Inc Reports January 2025 Bitcoin Production
Neutral
Feb 5, 2025
On February 5, 2025, Core Scientific announced its production and operations updates for January 2025. The company earned 256 self-mined bitcoins and hosted customers earned an estimated 17 bitcoins at its data centers. The total energized hash rate was 19.5 EH/s, with 161,000 bitcoin miners operating. The company also supported local electrical grids by reducing power consumption significantly.
Business Operations and StrategyFinancial Disclosures
Core Scientific Reports December 2024 Bitcoin Production
Positive
Jan 6, 2025
Core Scientific reported its December 2024 production and operations update, earning 291 self-mined Bitcoin, totaling 6,595 Bitcoin year-to-date. The company operated about 171,000 bitcoin miners, with a total energized hash rate of 20.1 EH/s. Additionally, Core Scientific delivered 30,985 megawatt hours to local grids by reducing power consumption at its data centers, indicating a commitment to efficient energy use.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.