Core Scientific

CORZ

Market cap $5.61B

Sifting the World's Chris DeMuth Jr. shares his strategy for focusing on mispricings, hidden value, and opportunities in overlooked or misunderstood situations. WLFC's asset value is underappreciated; partnerships could monetize up to $800M of its $1B market cap, clarifying true inventory worth.

Core Scientific Inc. (NASDAQ: CORZ) has signaled a definitive reversal in market sentiment this week, flashing bullish technical signals following an upgrade from BTIG.

Bitcoin miners are undergoing a transformation that could redefine the sector. Companies may shift from cryptocurrency mining to high-performance computing infrastructure.

San Francisco-based Valiant Capital Management increased its position in Core Scientific by 1.68 million shares in the third quarter. The move contributed to a net value change of $34.34 million.

Zurich-based PSquared Asset Management initiated a 405,800-share stake in Core Scientific during the third quarter. The position was worth about $7.28 million as of September 30.

Bitcoin miner, HPC infrastructure provider Core Scientific received a major upgrade Thursday. Shares jumped on the news.

New York City-based DSC Meridian Capital added nearly 1.4 million shares of Core Scientific in the third quarter. The net position change from the previous period was about $25.4 million.

Core Scientific is undergoing a strategic pivot from BTC mining to AI and HPC infrastructure, targeting higher-margin colocation revenue. The terminated CoreWeave acquisition leaves CORZ with a lucrative 12-year, $10B+ contract, providing high revenue visibility and strong margins. Despite high customer concentration and legacy digital asset exposure, I am bullish on CORZ given its aggressive growth ambitions and undervalued status.

Core Scientific's transition from Bitcoin mining to High Performance Computing has been extremely strategic, allowing them to capitalize on the AI-driven data center boom. Its Colocation Services now deliver higher gross margins of 26% compared to its mining operations and are expected to reach up to ~80% on new CRWV contracts. CORZ-CRWV's partnership notably reduces CORZ's capital/balance sheet burden and secures its AI growth opportunities over the next decade.

New York City-based Kintayl Capital bought 570,054 shares of Core Scientific worth an estimated $10.2 million during the third quarter. The position accounts for 6.3% of Kintayl's 13F-reportable assets.