On February 3, Pier Capital reported selling all 504,958 shares of Core Scientific (NASDAQ:CORZ) in the fourth quarter, an estimated $9.06 million transaction. What happened According to a Securities and Exchange Commission (SEC) filing dated February 3, Pier Capital sold all 504,958 shares of Core Scientific during the fourth quarter. The fund’s quarter-end Core Scientific position dropped by $9.06 million. What else to know Top five holdings after the filing: NYSE:MIR: $16.80 million (2.7% of AUM) ...

Group 1 - Ripple has secured full authorisation as an Electronic Money Institution (EMI) from Luxembourg's financial regulator, CSSF, after meeting all regulatory requirements [1] - The EU licence extends Ripple's regulatory footprint, adding to its existing EMI licence and Cryptoasset Registration from the UK's Financial Conduct Authority, bringing the total to over 75 licences globally [2] - The managing director for UK & Europe stated that the full EMI licence in the EU is a transformative milestone, enhancing Ripple's presence in European finance [2][3] Group 2 - Europe is a strategic priority for Ripple, and the new authorisation allows the company to scale its mission of providing compliant blockchain infrastructure to clients across the EU [3] - Ripple raised $500 million in November at a valuation of $40 billion, indicating strong investor confidence and regulatory progress [3][4] - The company has been active in acquisitions, agreeing to a $1 billion deal for GTreasury and a $200 million deal for Rail, enhancing its payment infrastructure [4][5]

Core Investment Activity - Valiant Capital Management increased its position in Core Scientific by 1.68 million shares in Q3, adding an estimated $34.34 million in overall position value [2][6] - As of September 30, Valiant held a total of 6.48 million shares valued at $116.31 million, making it the fund's largest position [3][6] Company Overview - Core Scientific has a market capitalization of $4.54 billion, employs 325 people, and reported a revenue of $334.18 million with a net income of -$768.31 million [5] - The company provides digital asset mining, blockchain infrastructure, and colocation services, generating revenue from both self-mining operations and hosting solutions for large-scale miners [8][9] Market Performance - As of the latest report, Core Scientific shares were priced at $14.65, reflecting a 4% increase over the past year, but underperforming the S&P 500, which rose by approximately 17% in the same period [4] Strategic Insights - The investment by Valiant Capital occurred during a period when Core Scientific's shares were up roughly 24% in the first three quarters of the year, indicating growing optimism around infrastructure monetization and a proposed merger [10] - The subsequent 32% decline in share value occurred after the merger was scrapped in late October, but the underlying business thesis remains intact despite this setback [12] Business Model and Customer Base - Core Scientific operates a dual business model, earning income from both self-mining and hosting services, catering primarily to large-scale digital asset miners and blockchain technology firms [8][9]

Core Investment Insights - Kintayl Capital LP has initiated a new position in Core Scientific, acquiring 570,054 shares valued at approximately $10.2 million, representing 6.3% of Kintayl's $162.2 million in reportable U.S. equity assets [2][9] - Core Scientific's shares are currently priced at $17.08, reflecting a 2% decline over the past year, underperforming the S&P 500, which has increased nearly 13% in the same period [2][3] Company Overview - Core Scientific is a leading provider of blockchain infrastructure and digital asset mining services, operating extensive facilities across North America [5] - The company utilizes proprietary software and hardware optimization to deliver high-performance mining and hosting solutions, focusing on institutional customers [5] Financial Performance - Core Scientific reported a total revenue of $334.2 million for the trailing twelve months (TTM), with a net income loss of $768.3 million [3] - Despite a 15% year-over-year revenue decline, gross profit improved modestly in the third quarter, indicating some resilience in its financial performance [6] Strategic Focus - The company is undergoing a strategic shift towards high-density colocation services, which have shown growth from $10.3 million to $15 million in the latest quarter [10] - Core Scientific's business model includes generating revenue from mining digital currencies, transaction fees, and offering hosting solutions to institutional clients [7] Market Position and Future Outlook - The new stake by Kintayl Capital suggests a view of Core Scientific as an infrastructure play rather than merely a crypto trade, indicating a fundamental transition in the company's operations [9] - The pending all-stock acquisition by CoreWeave introduces both potential and uncertainty regarding valuation and long-term direction [8]

Core Insights - Core Scientific is undergoing a significant transformation, with a major investor, VR Advisory Services, acquiring a substantial stake of 1.2 million shares valued at approximately $21.7 million [1][2][10] Company Overview - Core Scientific operates as a leading provider of blockchain infrastructure and digital asset mining services in North America, utilizing advanced data centers and proprietary technology to enhance mining efficiency [6][9] - The company's market capitalization stands at $4.9 billion, with a revenue of $334.2 million and a net income of -$768.3 million for the trailing twelve months [4] Financial Performance - In the third quarter, Core Scientific reported total revenue of $81.1 million, a decrease from $95.4 million year-over-year, while high-density colocation revenue increased to $15 million from $10.3 million [11] - The company experienced a net loss of $146.7 million, attributed to non-cash fair-value adjustments rather than operational issues, and maintains strong liquidity of $694.8 million, including $453.4 million in cash and $241.4 million in bitcoin [11] Strategic Shift - Core Scientific is pivoting towards high-density colocation and AI-related workloads, moving away from reliance on volatile bitcoin mining revenues [10][12] - The recent investment by VR Advisory Services indicates confidence in Core's strategic transition and its potential to stabilize revenue streams [10][12]

Core Insights - Crypto venture funding surged to $4.65 billion in Q3, marking a 290% increase from Q2 and the second-highest level since the FTX collapse [1][3][9] - The rebound indicates a stronger-than-expected appetite for digital-asset startups, despite overall activity remaining below the levels seen during the 2021-2022 bull market [3] Funding Trends - Key areas attracting capital include stablecoins, AI-driven crypto tools, blockchain infrastructure, and trading technology, while early-stage activity remained steady [4] - The quarter's fundraising was heavily concentrated, with seven deals accounting for half of the total investment, highlighting a trend where major players dominate capital absorption [5][6] Company Dynamics - Established companies, particularly those founded around 2018, received the majority of funding, while younger firms launched in 2024 represented the highest number of deals, indicating strong early-stage interest [7] - The share of pre-seed funding has consistently declined, suggesting a shift in investor preference towards more mature firms and liquid products like Bitcoin ETPs [8][9] Market Sentiment - The renewed momentum in funding comes after nearly two years of muted investment due to the fallout from FTX's fraud, which significantly impacted confidence in the sector [5] - The current market cycle has not seen a corresponding surge in venture financing, attributed to waning interest in previously popular categories like NFTs and Web3 gaming, alongside competition from AI startups [8]