| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Core Scientific, Inc. (NASDAQ: CORZZ) is a leading North American provider of digital asset mining and blockchain infrastructure services. The company operates through two primary segments: Mining, where it mines Bitcoin and other digital assets for its own account, and Hosting, where it provides comprehensive infrastructure and operational support for third-party miners. Core Scientific manages state-of-the-art data centers, offering power optimization, equipment maintenance, and software solutions tailored for high-efficiency cryptocurrency mining. Founded in 2017 and headquartered in Dover, Delaware, Core Scientific plays a pivotal role in the blockchain ecosystem by ensuring scalable and sustainable mining operations. With a strong focus on energy efficiency and technological innovation, the company is well-positioned in the rapidly evolving cryptocurrency and blockchain infrastructure sector. Its dual revenue model—combining proprietary mining with hosting services—provides resilience against market volatility.
Core Scientific presents a high-risk, high-reward investment opportunity due to its exposure to the volatile cryptocurrency market. The company's significant net losses (-$1.3B in recent reporting) and high beta (9.05) reflect extreme sensitivity to Bitcoin price swings. However, its vertically integrated model—combining proprietary mining with hosting services—provides revenue diversification. The company's $836M cash position offers liquidity, but its $1.2B debt load raises solvency concerns if crypto winter persists. Investors bullish on Bitcoin's long-term adoption may find value in Core Scientific's scalable infrastructure, but the stock is suitable only for those with high risk tolerance.
Core Scientific competes in the capital-intensive Bitcoin mining industry, where scale, energy costs, and operational efficiency determine profitability. The company's competitive advantage lies in its dual revenue streams (self-mining + hosting), which provide stability compared to pure-play miners. Its proprietary software stack optimizes mining rig performance and energy use, a critical differentiator given electricity's ~60% share of mining costs. Core Scientific's strategic partnerships with hardware manufacturers secure early access to next-gen ASICs. However, the company faces intense competition from miners with access to cheaper power (e.g., those in Texas or renewable-powered operations). Its debt-heavy balance sheet limits agility versus better-capitalized peers during market downturns. The hosting business provides sticky revenue but depends on continued demand from smaller miners—a segment vulnerable to consolidation. Core Scientific's scale (one of North America's largest miners by hashrate) provides economies of scale in procurement and power negotiations, though Chinese miners still dominate global hashrate share.