Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 14 Jan, 26 | CORZ | Buy | USD 18.03 | USD 19.0 | USD 20.0 | 2 days | Closed |
5.38%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Core Scientific, Inc. provides digital asset mining services in North America. It operates through two segments, Mining and Hosting. The company offers blockchain infrastructure, software solutions, and services; and operates data center mining facilities. It also mines digital assets for its own account; and provides hosting services for other large bitcoin miners, which include deployment, monitoring, trouble shooting, optimization, and maintenance of its customers' digital asset mining equipment. In addition, the company provides electrical power, repair, and other infrastructure services to operate, maintain, and earn digital assets; and sells mining equipment to customers. Core Scientific, Inc. was founded in 2017 and is headquartered in Dover, Delaware.
Growth in High-Density Colocation Revenue: In Q3 FY25, Core Scientific generated USD 15.0 million of high-density colocation revenue, compared with USD 10.3 million in Q3 FY24
Improvement in Gross Profitability: The Company reported a gross profit of USD 3.9 million in Q3 FY25, versus a gross loss of USD 0.2 million in Q3 FY24
Sharp Reduction in Bitcoin Mining Output: Bitcoin production declined by approximately 55% year-on-year in Q3 FY25, contributing to a reduction in digital asset self-mining revenue to USD 57.4 million, compared with USD 68.1 million in Q3 FY24
Decline in Total Revenue: Total revenue declined to USD 81.1 million in Q3 FY25, from USD 95.4 million in Q3 FY24,
Core Scientific’s investment profile remains highly sensitive to the successful execution and concentration risk of its high-density colocation strategy, including reliance on a limited number of large customers, continued access to low-cost power, and the completion of the proposed CoreWeave transaction, while legacy exposure to bitcoin price volatility and warrant-related balance-sheet distortions persists
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 18.03 | 16.2 | 19.0 | 20.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Revenue Mix and Business Transition: Core Scientific’s total revenue declined in Q3 FY25 as the Company continued its strategic transition away from legacy bitcoin mining toward high-density colocation services. Total revenue stood at USD 81.1 million in Q3 FY25, compared with USD 95.4 million in Q3 FY24, reflecting lower contributions from both self-mining and hosted mining activities. This decline was partially offset by the continued scaling of colocation revenues, highlighting the Company’s evolving business mix toward infrastructure-led recurring revenues.
Digital Asset Mining Performance: Digital asset self-mining revenue declined to USD 57.4 million in Q3 FY25 from USD 68.1 million in Q3 FY24, primarily due to a 55% year-on-year decline in bitcoin mined, despite an 88% increase in the average realized bitcoin price. Hosted mining revenue also fell materially to USD 8.7 million in Q3 FY25 from USD 16.9 million in Q3 FY24, reflecting the Company’s deliberate reduction of third-party mining exposure in favor of redeploying power capacity toward colocation services.
Growth in High-Density Colocation Operations: High-density colocation revenue increased meaningfully to USD 15.0 million in Q3 FY25, up from USD 10.3 million in Q3 FY24, driven by the expansion of facilities supporting AI and high-performance computing workloads. This segment continues to represent the Company’s primary long-term growth vector, supported by customer-funded capital expenditures and long-duration commercial arrangements, notably with CoreWeave.
Profitability and Cost Structure: The Company reported a gross profit of USD 3.9 million in Q3 FY25, compared with a gross loss of USD 0.2 million in Q3 FY24, reflecting improved cost discipline and a higher contribution from colocation services. However, elevated operating expenses resulted in an operating loss of USD 57.4 million, as selling, general and administrative expenses increased in line with organizational scaling and business transformation initiatives.
Net Loss and Non-Cash Adjustments: Net loss narrowed significantly to USD 146.7 million in Q3 FY25, from USD 455.3 million in Q3 FY24, largely due to a substantially lower non-cash fair value loss on warrants and contingent value rights of USD 74.9 million, compared with USD 408.5 million in the prior-year period. This reduction reflects lower stock price volatility during the quarter rather than underlying operating profitability.
Capital Expenditure and Asset Base Expansion: Capital expenditures totaled USD 244.5 million in Q3 FY25, of which USD 196.4 million was funded by CoreWeave under existing colocation agreements. As a result, property, plant and equipment expanded materially to USD 1.08 billion as of September 30, 2025, from USD 0.56 billion as of December 31, 2024, underscoring the Company’s aggressive build-out of AI-ready infrastructure.
Liquidity and Balance Sheet Position: Core Scientific ended Q3 FY25 with liquidity of USD 694.8 million, comprising USD 453.4 million in cash and cash equivalents and USD 241.4 million in bitcoin holdings. While liquidity remains robust, total liabilities increased to USD 3.42 billion, and stockholders’ deficit widened to USD 1.13 billion, reflecting continued net losses and significant warrant-related liabilities.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on Core Scientific, Inc (NASDAQ: CORZ) at the closing market price of USD 18.03, as on Jan 13, 2026.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Infrastructure
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| CORZ Core Scientific, Inc. Common Stock |
-0.275 1.54% | 17.59 | - | - | 1.08 | - | 2.70 | -21.472 |
| MSFT Microsoft Corporation |
-12.6575 2.99% | 410.71 | 37.32 | 29.94 | 13.03 | 12.45 | 13.06 | 24.59 |
| ORCL Oracle Corporation |
-5.8 3.62% | 154.26 | 29.34 | 18.66 | 5.55 | 74.06 | 7.10 | 18.13 |
| ADBE Adobe Systems Incorporated |
-21.225 7.23% | 272.15 | 46.32 | 26.81 | 11.51 | 16.73 | 11.55 | 31.20 |
| PANW Palo Alto Networks Inc |
-9.33 5.32% | 166.09 | 44.57 | 45.05 | 11.98 | 20.70 | 11.82 | 77.11 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 14, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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