Today’s Stock: Core Scientific, Inc. (CORZ)Today’s Stock: Core Scientific, Inc. (CORZ)

Core Scientific, Inc. provides digital asset mining services in the United States. It operates through three segments: Digital Asset Self-Mining; Digital Asset Hosted Mining; and HPC Hosting. The company offers digital infrastructure, software solutions, and services; and operates licensing data center space facilities.

It also deploys and operates own large fleet of miners within owned digital infrastructure as part of a pool of users that process transactions conducted on one or more blockchain networks; and provides hosting services for digital asset mining customers, 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.

My Thoughts 💭My Thoughts 💭

Before the ETF’s launch, I was searching for Bitcoin miners to grow my fiat holdings and accumulate more sats. CORZ had an impressive operation, mining a substantial amount of BTC. However, due to their aggressive expansion, they faced bankruptcy but emerged with their stock skyrocketing!

At a price of 27.1k sats per share ($65,870) and without a dividend, CORZ’s direct investment in the company could potentially offer value to Bitcoin investors.

The company trades at a PE ratio of -8, indicating that investors are paying $8 for every $1 of potential losses. Since the company is not profitable, investors are taking a significant risk with their capital by purchasing shares at this valuation.

Let’s examine some key fundamentals to determine if this stock is worth investing in.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

No dividendNo dividend

Bitcoin per share:Bitcoin per share:

Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

The company’s fundamentals are flawed.

The balance sheet is in poor shape, the CEO is overpaid, and the company is not profitable.

However, the growth prospects are promising, with projections indicating that the company will surpass Bitcoin in terms of growth. They mine Bitcoin and maintain over 2,000 BTC on their balance sheet.

From a Bitcoin enthusiast’s perspective, paying 27.1k sats for this company may not be a wise investment. While their Bitcoin holdings place them in the 34th position on the Bitcoin treasury list, the company’s fundamentals raise concerns. The CEO’s salary of $41 million, despite the company’s lack of profitability, is particularly troubling.

Here is the performance according to Simply Wall Street

I bought shares in this company right after they emerged from bankruptcy. It has performed well over the years but now I think it’s time to move on from this stock.

While I like miners I think it’s time to dump these shares and put them into a hyperscaler company like XXI. I don’t feel confident this company will be around for the long term. With so many Bitcoin mining companies getting into the AI data center boom how much longer will CORZ hang on with how bad this balance sheet is and an overpaid CEO.

Selling out of my shares tomorrow.