Core Scientific Inc (CORZ) AI Stock Analysis

• Market Cap: $4.32B
• Dividend Yield: N/A
• Average Volume (3M): 22.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.96
• Revenue Growth: -39.43%
• EPS Growth: 90.95%
• Country: US
• Employees: 325
• Sector: General
• Sector Strength: N/A
• Industry: Software - Infrastructure
• EPS (TTM): -0.04
• Shares Outstanding: 305,408,450
• 10 Day Avg. Volume: 20,906,745
• 30 Day Avg. Volume: 22,357,979
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 16.75
• Enterprise Value/Gross Profit: 326.97
• Enterprise Value/Ebitda: -8.07
• 1Y Price Target: $18.36
• Price Target Upside: 29.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 50 Neutral
• Price Target: $14.00 ▼(-0.92% Downside)

Core Scientific Inc. faces substantial financial challenges, which heavily impact its overall score. The merger with CoreWeave offers potential strategic benefits, but current financial instability and poor valuation metrics weigh heavily on the stock's outlook. Technical indicators are neutral, providing little support to offset financial concerns.

Positive Factors

Growth Potential

CRWV has access to in-demand GPUs and HPC data centers, which are expected to drive a multi-year growth story for the industry.

Long-term Revenue

The initial deal for HPC services is projected to bring significant long-term revenue, with a potential valuation range for CORZ at $8-$14 per share.

Strategic Fit

The deal is considered a strategic fit and unlocks additional IT capacity for CRWV.

Negative Factors

Acquisition Agreement

The acquisition deal was expected to include a cash component, but it ended up being an all-stock agreement, which disappointed many CORZ investors.

Investor Dissatisfaction

CORZ stock dropped around 15% after the announcement of the acquisition agreement, reflecting investor dissatisfaction with the deal terms.

Shareholder Opposition

The largest independent Core Scientific shareholder, Two Seas Capital holding approximately 6.3% outstanding, publicly declared a vote in opposition to the CoreWeave combination.

Core Scientific Inc Business Overview & Revenue Model

Company Description

Core Scientific Inc (CORZ) is a leading provider of blockchain infrastructure and digital asset mining services. The company operates within the technology and financial services sectors, focusing on high-performance computing solutions. Core Scientific offers a suite of services including hosting, mining, and blockchain development, catering to a wide range of clients from individual miners to large-scale enterprises.

How the Company Makes Money

Core Scientific Inc primarily makes money through its digital asset mining operations and hosting services. The company generates revenue by mining cryptocurrencies, which involves solving complex computational problems to validate transactions on a blockchain network, earning digital assets as a reward. Additionally, Core Scientific provides hosting and management services for other cryptocurrency miners, charging fees for the use of its infrastructure and expertise. The company leverages its large-scale data centers and advanced technology solutions to optimize mining efficiency and profitability. Strategic partnerships with technology providers and energy companies also play a significant role in enhancing its operational capabilities and reducing costs.

Core Scientific Inc Financial Statement Overview

Summary

Core Scientific Inc is facing substantial financial challenges across all verticals. Declining revenue, negative profit margins, and high leverage contribute to a precarious financial position. Cash flow difficulties further exacerbate the situation, limiting flexibility and operational sustainability. Immediate strategic adjustments are necessary to stabilize and improve financial health.

Income Statement

Core Scientific Inc has experienced a significant decline in financial performance. Revenue has been decreasing, with a negative revenue growth rate from 2022 to 2023. Margins have deteriorated, with gross profit margin slipping and the net profit margin deeply negative, indicating substantial losses. EBIT and EBITDA margins are negative, highlighting operational inefficiencies and challenges in covering operating expenses.

Balance Sheet

The balance sheet of Core Scientific Inc shows financial instability. The company has negative stockholders' equity, indicating liabilities exceed assets. The high debt-to-equity ratio and negative equity ratio suggest a highly leveraged position, which poses significant financial risk. Return on Equity is negative due to consistent net losses, further reflecting poor financial health.

Cash Flow

Cash flow analysis reveals operational challenges, as seen by negative operating cash flow in the TTM period. Free cash flow is also negative, indicating cash outflows exceed inflows. The operating cash flow to net income ratio is unfavorable, reflecting cash generation issues. Despite occasional positive financing cash flows, the overall cash flow situation remains concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	348.43M	510.67M	502.40M	640.31M	544.48M	60.32M
Gross Profit	17.84M	121.07M	123.46M	8.40M	238.86M	9.39M
EBITDA	-723.12M	-1.16B	-63.12M	-1.84B	167.61M	-2.74M
Net Income	-1.08B	-1.32B	-246.49M	-2.15B	47.31M	-12.21M
Balance Sheet
Total Assets	1.98B	1.60B	712.16M	807.69M	2.44B	225.58M
Cash, Cash Equivalents and Short-Term Investments	581.35M	836.20M	50.41M	15.88M	117.87M	8.67M
Total Debt	1.06B	1.20B	865.54M	37.73M	818.81M	40.29M
Total Liabilities	3.04B	2.42B	1.31B	1.22B	1.05B	136.35M
Stockholders Equity	-1.06B	-820.18M	-596.94M	-409.35M	1.39B	133.70M
Cash Flow
Free Cash Flow	-256.94M	-52.06M	48.95M	-178.79M	-116.01M	-25.33M
Operating Cash Flow	12.92M	42.90M	65.11M	205.19M	-56.73M	-23.77M
Investing Cash Flow	-273.10M	-95.19M	-3.00M	-590.78M	-423.84M	-15.14M
Financing Cash Flow	744.42M	819.57M	-44.65M	306.15M	603.53M	40.72M

Core Scientific Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CORZ, the sentiment is Positive. The current price of 14.13 is above the 20-day moving average (MA) of 13.86, above the 50-day MA of 13.74, and above the 200-day MA of 12.36, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 55.93 is Neutral, neither overbought nor oversold. The STOCH value of 52.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CORZ.

Core Scientific Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLO	81 Outperform	$4.47B	37.64	26.10%	―	14.70%	-18.52%
DOCN	73 Outperform	$2.83B	24.38	-41.63%	―	13.29%	79.98%
AVPT	62 Neutral	$3.19B	―	-2.60%	―	24.41%	40.20%
STNE	60 Neutral	$4.23B	8.73	-8.77%	―	-20.82%	-154.29%
Sector *	56 Neutral	$6.59B	7.66	-9.67%	6.27%	14.87%	-2.21%
CORZ	50 Neutral	$4.32B	―	160.33%	―	-39.43%	90.95%
BKKT	41 Neutral	$215.29M	―	-70.04%	―	111.83%	73.52%

Core Scientific Inc Corporate Events

Core Scientific Announces Merger with CoreWeave

Core Scientific, Inc. reported a significant decline in its fiscal second quarter 2025 financial results, with total revenue dropping to $78.6 million from $141.1 million in the same quarter of 2024. The company experienced a decrease in digital asset self-mining and hosted mining revenues, offset by an increase in colocation revenue due to expansion in Denton, Texas. Despite a net loss of $936.8 million, Core Scientific maintains a strong liquidity position. Additionally, the company announced a pending merger with CoreWeave, where CoreWeave will acquire Core Scientific in an all-stock transaction, subject to regulatory and stockholder approvals.

Core Scientific Inc Announces Merger with CoreWeave

On July 7, 2025, Core Scientific, Inc. entered into a merger agreement with CoreWeave, Inc., where Core Scientific will become a wholly-owned subsidiary of CoreWeave. The merger involves an exchange of shares and the conversion of stock options and awards, with conditions including regulatory approvals and shareholder votes. This merger is expected to enhance Core Scientific’s market positioning and operational capabilities, impacting stakeholders through potential synergies and strategic alignment in the high-performance computing and digital asset sectors.

Core Scientific Merges with CoreWeave in $9 Billion Deal

On July 7, 2025, CoreWeave and Core Scientific announced a merger agreement where CoreWeave will acquire Core Scientific in an all-stock transaction. This acquisition aims to enhance CoreWeave’s data center capabilities, improve operational efficiency, and expand their power footprint, ultimately solidifying their growth trajectory in AI and HPC workloads. The transaction, expected to close in the fourth quarter of 2025, will result in significant cost savings and strategic benefits, including greater financing flexibility and expanded expertise. Core Scientific’s stockholders will receive shares of CoreWeave Class A common stock, with the merger valued at approximately $9 billion.

Core Scientific Inc Restructures Post-Bankruptcy Governance

On May 23, 2025, Core Scientific, Inc. held its reconvened 2025 Annual Meeting of Stockholders to vote on amendments to its Certificate of Incorporation. The stockholders approved proposals to eliminate the classification of the Board of Directors, remove the supermajority vote requirements, and eliminate certain consent rights provided to creditors, which are significant steps in the company’s restructuring process following its emergence from bankruptcy.