The CoreWeave-Core Scientific Deal Isn’t Likely to Go Through. Analysts Say That Makes CORZ Stock a Buy.

Core Viewpoint - Core Scientific is transitioning from Bitcoin mining to artificial intelligence and next-generation compute workloads after emerging from Chapter 11 bankruptcy in early 2024 [1] Company Overview - Core Scientific, founded in 2017 and located in Austin, Texas, specializes in high-density colocation and digital asset mining services [2] Stock Performance - The stock has gained 3% in the last five days and 15% over the past month, with a 133% increase over the last six months and a year-to-date return of 38%, significantly outperforming the Russell 2000 Index, which is up only 13% [3] - Over the past 52 weeks, Core Scientific shares have risen approximately 41%, while the Russell 2000 advanced just 13.5% [3] Financial Results - For Q3 2025, Core Scientific reported revenue of $81.1 million, below analyst expectations of $107.2 million, and a 15% decline year-over-year [5] - The company posted a net loss of $146.7 million, an improvement from a $455.3 million loss in the same quarter last year [5] - Earnings per share were ($0.46), beating the consensus estimate of ($0.85), but wider than the ($0.13) per share from the previous year [5] Revenue Breakdown - Digital asset self-mining revenue decreased to $57.4 million due to a 55% reduction in Bitcoin mined, offset by an 88% rise in average Bitcoin price [6] - High-density colocation revenue grew to $15 million, indicating a strategic focus on AI infrastructure [6] - Hosting revenue continued to decline as part of the strategic transition [6] Profitability Metrics - Gross profit rebounded to $3.9 million from a loss of $0.2 million in the previous year [7] - Adjusted EBITDA turned negative at ($2.4) million [7] - The company closed the quarter with total liquidity of $694.8 million, consisting of $453.4 million in cash and $241.4 million in Bitcoin holdings [7]