Latest news with #CORZ
Yahoo
6 days ago
- Business
- Yahoo
Today's Corporate Bitcoin Holders Could be Tomorrow's Forced Sellers: StanChart
Corporate bitcoin BTC treasuries are adding to buying pressure at the moment, but a sharp drop in the price of the world's cryptocurrency could lead to forced liquidations, Standard Chartered analyst Geoff Kendrick said in a research report on Tuesday. As many as 61 publicly listed companies have adopted the cryptocurrency as a treasury asset, and these firms now own a combined 673,897 bitcoin as of the end of May, or 3.2% of the cryptocurrency's total supply, the report said. That big number, of course, owes nearly everything to Michael Saylor's Strategy (MSTR), which by itself holds a total of 580,955 tokens. "Based on the 2022 example of Core Scientific (CORZ), we estimate that prices more than 22% below average purchase prices could lead to liquidations," wrote Geoff Kendrick, head of digital assets research at Standard Chartered. In the bear market of that year, the bitcoin miner under considerable financial pressure sold 7,202 bitcoins in June 2022 at an average price of $23,000 to raise about $167 million.. "The forced sale price (forced in the sense that creditors would no longer fund Core Scientific's business model) was just 22% below the cost of production," said Kendrick. If bitcoin were to move back below the $90,000 level, half of these bitcoin treasuries would be underwater, he added.
Yahoo
6 days ago
- Business
- Yahoo
Today's Corporate Bitcoin Holders Could be Tomorrow's Forced Sellers: StanChart
Corporate bitcoin BTC treasuries are adding to buying pressure at the moment, but a sharp drop in the price of the world's cryptocurrency could lead to forced liquidations, Standard Chartered analyst Geoff Kendrick said in a research report on Tuesday. As many as 61 publicly listed companies have adopted the cryptocurrency as a treasury asset, and these firms now own a combined 673,897 bitcoin as of the end of May, or 3.2% of the cryptocurrency's total supply, the report said. That big number, of course, owes nearly everything to Michael Saylor's Strategy (MSTR), which by itself holds a total of 580,955 tokens. "Based on the 2022 example of Core Scientific (CORZ), we estimate that prices more than 22% below average purchase prices could lead to liquidations," wrote Geoff Kendrick, head of digital assets research at Standard Chartered. In the bear market of that year, the bitcoin miner under considerable financial pressure sold 7,202 bitcoins in June 2022 at an average price of $23,000 to raise about $167 million.. "The forced sale price (forced in the sense that creditors would no longer fund Core Scientific's business model) was just 22% below the cost of production," said Kendrick. If bitcoin were to move back below the $90,000 level, half of these bitcoin treasuries would be underwater, he added.
Yahoo
14-05-2025
- Business
- Yahoo
APLD vs. CORZ: Which AI Data Center Stock Is the Better Buy?
Applied Digital APLD and Core Scientific CORZ are emerging powerhouses in the rapidly growing AI infrastructure space, each racing to meet surging demand for high-performance data centers. As AI workloads accelerate and investors seek exposure to the digital backbone behind them, both companies have attracted major partnerships — APLD with Nvidia and Macquarie, and CORZ with CoreWeave. While APLD touts aggressive expansion plans and growth in cloud services, CORZ is already executing large-scale AI hosting deals with billions in potential revenues. With both stocks offering compelling upside, the question remains: Which AI data center stock makes for a better investment pick now? Applied Digital reported third-quarter fiscal 2025 revenues of $52.9 million, representing a 22% year-over-year increase. The figure, however, missed estimates by $9.99 million. Loss per share was 16 cents, which lagged estimates by 45.5%. Adjusted EBITDA rose sharply to $10 million, though the company still posted a $36.1 million net loss. Image Source: Zacks Investment Research In contrast, Core Scientific posted significantly higher revenues of $79.5 million for the first quarter of 2025, though the figure was down 55.7% year over year. Loss per share was 10 cents, which beat expectations by 16.7%. Adjusted EBITDA was negative $6.1 million against $88 million in the year-ago quarter. The quarter was affected by reduced Bitcoin production as sites transitioned to high-density colocation. APLD's AI strategy centers around its Cloud Services segment and Ellendale campus, which is under construction. However, APLD announced plans to divest the Cloud business due to conflicts with its data center leasing model and future REIT aspirations. Four of the six GPU clusters remain under reserve contracts, while the other two are on-demand. This shift led to some technical hiccups during the quarter. Meanwhile, CORZ has embedded AI infrastructure into its core operations. Its foundational partnership with CoreWeave includes a take-or-pay structure, where CoreWeave funds nearly all CapEx for up to 590MW of AI-focused capacity by 2027. These contracts include risk-sharing mechanisms and are seen as highly capital-efficient. CORZ is already delivering 8MW and targets 250MW by year-end. APLD's growth hinges on its 400MW+ Ellendale development, with 100MW expected online by fourth-quarter 2025. Two additional buildings (each 150MW) are scheduled for 2026 and 2027. It has a 1.4GW pipeline and financial backing from Macquarie (up to $5B) and SMBC ($375M) CORZ plans to deliver 250 MW to CoreWeave by the end of 2025 and 590 MW by early 2027. Additionally, it expects to expand 300 MW at existing sites and develop another 400 MW in new geographies. The company is also pursuing M&A and intends to reduce CoreWeave's footprint to <50% of capacity by 2028 through customer diversification. The Zacks Consensus Estimate for APLD's fiscal 2025 sales and EPS implies a year-over-year improvement of 52.8% and 26.7%, respectively. EPS estimates for 2025 and 2026 have remained stable over the past 60 days. APLD Estimate Movement Image Source: Zacks Investment Research The Zacks Consensus Estimate for Core Scientific's 2025 sales and EPS implies a year-over-year decline of 18.5% and an improvement of 132.8%, respectively. However, EPS estimates for 2025 and 2026 have been trending northward over the past 30 days. CORZ Estimate Movement Image Source: Zacks Investment Research In the past month, shares of both Applied Digital and Core Scientific have been impressive, with APLD outperforming CORZ. The rise in the share price of both companies is likely due to the increasing demand for AI services as well as certain restrictions on Chinese competition. Shares of APLD and CORZ have surged 63.1% and 49.5%, respectively. Image Source: Zacks Investment Research Both Applied Digital and Core Scientific have a Zacks Rank #3 (Hold) at present, which makes it difficult to choose one of them. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The Zacks Style Score can help investors make a prudent choice, although they have the same Zacks Rank. APLD's style score of 'D' indicates a strong growth prospect, although it has an expensive valuation. However, CORZ's style score of 'F' reflects its expensive valuation and low growth potential going forward. As discussed above, CORZ is ahead in AI strategy execution and customer partnerships, while APLD has more aggressive forward-looking infrastructure plans but faces strategic uncertainty due to its pending Cloud divestiture and unleased capacity. CORZ has a more integrated and capital-light AI strategy, supported by long-term contracts with CoreWeave. APLD's intent to exit Cloud Services weakens its position in AI infrastructure. Both have ambitious buildout plans, but CORZ is already delivering capacity and is better diversified geographically and financially. APLD's future depends heavily on securing leases at Ellendale. However, APLD shows stronger revenue growth momentum and EBITDA improvement. With current fundamentals, Applied Digital has better odds of generating wealth for investors compared to Core Scientific. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Digital Corporation (APLD) : Free Stock Analysis Report Core Scientific, Inc. (CORZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
29-04-2025
- Business
- Yahoo
Bitcoin Miner 1Q Results May Disappoint as Hashprice Fell, Tariffs Hit: CoinShares
Bitcoin (BTC) miners' first-quarter results may disappoint because the hashprice, a measure of daily mining profitability, fell further and trade tariffs weighed on the market, asset manager CoinShares (CS) said in a blog post on Friday. "Q2 results may show deterioration, as tariffs on imported mining rigs range from 24% (Malaysia) to 54% (China)," analysts led by James Butterfill wrote. Bitcoin miners that are dependent on older or less-efficient rigs are faced with higher exposure to these tariffs, the report said. Core Scientific (CORZ) is "better insulated, as it transitions to HPC," the authors wrote, adding that Bitdeer (BTDR), which makes its own rigs, could see margin pressure on sales outside the U.S. The asset manager predicts that the Bitcoin network hashrate could reach 1 zettahash per second (ZH/s) by July and 2 ZH/s by early 2027. The hashprice outlook is not as positive. The asset manager's model indicates "a gradual structural decline, with prices likely to remain range-bound between $35 and $50 per PH/day through to the 2028 halving cycle." Tariffs and trade tensions could be positive for bitcoin adoption in the medium term, asset manager Grayscale said in a research report earlier this in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
Why Core Scientific Inc. (CORZ) Went Up On Friday
We recently published a list of . In this article, we are going to take a look at where Core Scientific Inc. (NASDAQ:CORZ) stands against other firms that led Friday's rally. The stock market ended the week stronger with all its major indices closing higher as investors repositioned portfolios ahead of more corporate earnings next week while navigating an evolving global trade environment. The tech-heavy Nasdaq surged by 1.26 percent, while the S&P 500 and Dow Jones eked out marginal gains of 0.74 percent and 0.05 percent, respectively. Meanwhile, 10 companies mirrored the broader market sentiment, ending the trading week with modest gains. In this article, we have listed the 10 top-performing stocks and detailed the reasons behind their gains. To come up with the list, we considered only the companies with a $2-billion market capitalization and $5-million trading volume. nullplus/ Core Scientific Inc. (NASDAQ:CORZ) Core Scientific jumped by 10.36 percent on Friday, a fourth straight day, as investors repositioned portfolios ahead of the release of its first quarter earnings performance on Wednesday, May 7, 2025. CORZ, a digital infrastructure company for high-performance computing and Bitcoin mining, reported a higher number of self-mined Bitcoins last month, at 247 versus 215 in February. In recent news, Core Scientific Inc. (NASDAQ:CORZ) announced plans to expand its existing footprint in Dalton, Georgia, with an additional 170 acres of land set for development. The company said it was looking to build an AI data center called Dalton 4 in the area, close to its existing facilities, which it expects to open by July 2026. According to reports, another facility is expected to be built in the future. Overall, CORZ ranks 1st on our list of firms that led Friday's rally. While we acknowledge the potential of CORZ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CORZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
