Core Scientific Inc. (NASDAQ:CORZ) has released its fourth-quarter earnings, reporting an adjusted loss of 29 cents per share, which fell short of the expected consensus of 18 cents. The company”s total sales decreased from $94.9 million to $79.76 million, also below the consensus estimate of $105.71 million.
Adam Sullivan, CEO of Core Scientific, expressed optimism about the company”s growth trajectory, stating, “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.” He emphasized the company”s strategic multi-geography footprint and effective execution in accelerating RFS timelines across various sites to foster sustainable growth.
The revenue from colocation services soared to $31.3 million, a remarkable increase from $8.5 million reported in the previous year, attributed to the expansion of these operations. In contrast, revenue from self-mining digital assets plunged to $42.2 million, down from $79.9 million, primarily due to a significant 57% reduction in the amount of bitcoin mined. Nonetheless, a 20% rise in the average price of bitcoin helped soften the impact of the sales decline. Additionally, revenue from digital asset-hosted mining was recorded at $6.3 million.
In the analyst outlook, Brett Knoblauch from Cantor maintained an Overweight rating on the stock but revised the price forecast down from $26 to $25, reflecting a lower valuation for Core Scientific”s bitcoin mining operations. The near-term performance is influenced by the company”s bitcoin mining economics and the ongoing development of its AI framework for CoreWeave Inc. (NASDAQ:CRWV). Knoblauch advised investors to monitor the pace of megawatt energization for CoreWeave, upcoming customer announcements, and the expansion of the power pipeline.
HC Wainwright also reiterated a Buy rating for Core Scientific, setting a price target of $25. Analyst Kevin Dede noted that as colocation services ramp up, bitcoin mining is anticipated to take a backseat. He highlighted that 350 megawatts are currently energized for CoreWeave, with nearly 200 megawatts already billed. This progress positions Core Scientific well towards meeting its ambitious 590 megawatts, over $10 billion, 12-year contract with CoreWeave, expected to be fulfilled by early 2027.
From a technical perspective, Core Scientific”s stock is presently trading 5.2% below its 20-day simple moving average, indicating a bearish short-term trend. Over the past year, shares have experienced a significant decline, approaching their 52-week lows, reflecting ongoing operational challenges. The relative strength index (RSI) stands at 50, indicating a neutral position, while the moving average convergence divergence (MACD) sits at 0.00, revealing a lack of momentum that may suggest further bearish pressure. Traders are advised to remain cautious given the mixed signals from the technical indicators.
Key resistance for the stock is identified at $17.00, while key support is noted at $14.00. As of the latest data from Benzinga Pro, Core Scientific shares were down 5.46% at $15.59.
