WILMINGTON, Del., Dec. 15, 2025 /PRNewswire/ -- Synteq Digital (Synteq), a leader in the digital compute sector, today announced it has entered into definitive agreements with Horizon Kinetics (Horizon), and FRMO Corp. (FRMO), to acquire key real estate assets, including a data center in North Carolina with approximately 10MW of capacity in an all-equity transaction. This real asset transaction marks the first phase of Synteq Digital's broader strategic expansion. Horizon, a distinguished NYC-based fund ma ...

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Core Insights - The current market bounce raises questions about its sustainability, with debates on whether it is a genuine recovery or a speculative trap [1][2] - The resignation of Oracle's CEO Safra Catz signals potential issues with the company's ambitious data center buildout plans, which may stretch its balance sheet [1][2] - Concerns are growing about OpenAI's financial stability and its ability to fulfill its $355 billion remaining performance obligations (RPO) to Oracle, especially given the lack of federal support [1][2] - CoreWeave, a key player in data center construction, is facing delays due to subcontractor issues, which could impact Oracle's revenue from the buildout [2] Company-Specific Developments - Oracle's stock price fell from $328 to $248 following negative developments related to OpenAI and the data center buildout, indicating a loss of investor confidence [1][2] - OpenAI's CFO Sarah Friar's comments about a potential backstop from the government raised alarms about the company's financial health and its ability to meet obligations [1][2] - CoreWeave's failure to complete projects on time due to Core Scientific's delays has further complicated the situation for Oracle and its data center strategy [2] Market Trends and Speculation - The market is witnessing a shift away from speculative investments in bitcoin, quantum computing, and alternative energy, as many companies in these sectors are running out of cash and facing increased scrutiny [2] - The "Year of Magical Investing" is perceived to be over, with a need for investors to pivot towards more stable and profitable companies [2] - The upcoming earnings reports from major companies like Nvidia will be critical in determining market direction and investor sentiment [3]

Group 1 - Core Scientific, Inc. (NASDAQ:CORZ) is currently viewed as a strong investment opportunity, with a Buy rating and a price target of $17.00 set by Bernstein analyst Gautam Chhugani [1] - In fiscal Q2 2025, Core Scientific reported total revenue of $78.6 million, a decrease from $141.1 million in the same quarter the previous year [2] - The company's adjusted EBITDA for the same quarter was $21.5 million, down from $46.0 million year-over-year [2] Group 2 - Core Scientific operates in the digital Bitcoin mining and high-performance computing infrastructure sector, utilizing its own fleet of miners to earn Bitcoin and providing hosting services at eight operational data centers in the U.S. [3]

Core Insights - The report highlights the rapid evolution of the digital mining industry, emphasizing its intersection with information technology and energy systems, and provides insights from firms representing nearly 48% of Bitcoin's computational power [21][22][23]. Industry Landscape - The United States has emerged as the largest Bitcoin mining hub, accounting for 75.4% of global mining activity, followed by Canada at 7.1% [21][24]. - The hardware market is characterized by oligopoly, with Bitmain, MicroBT, and Canaan controlling over 99% of the market share, and Bitmain alone holding 82% [26]. Energy Consumption and Environmental Impact - Bitcoin mining consumes approximately 138 TWh of electricity annually, representing about 0.54% of global electricity consumption, with an associated greenhouse gas emission of around 39.8 MtCO2e [21][24][25]. - Sustainable energy sources constitute 52.4% of the electricity mix used in mining, with natural gas being the largest single source at 38.2% [25]. Economic Aspects - Miners' revenue is derived from block rewards and transaction fees, with transaction fees becoming increasingly significant as block rewards diminish due to halving events [2][21]. - Electricity costs represent over 80% of miners' operational expenses, with median electricity costs reported at $45/MWh [24][29]. Future Trends - The industry faces challenges from decreasing block rewards, prompting miners to diversify into high-performance computing and innovative energy strategies [2][30]. - Miners are exploring business diversification and geographical expansion as key strategies to mitigate risks associated with energy prices and regulatory uncertainties [28][29]. Technological Developments - Mining hardware efficiency has improved significantly, with the industry-wide ASIC efficiency estimated at 28.2 J/TH, marking a 24% year-over-year improvement [24]. - The next generation of ASICs is expected to achieve efficiencies below 10 J/TH, although technological advancements may not fully offset the impact of declining rewards [2][30].