Core Scientific Misses Q4 Estimates, Stock Falls 4.5%
Core Scientific (CORZ) shares declined 4.5% in after-hours trading after the bitcoin miner reported fourth-quarter financial results that fell significantly short of Wall Street estimates. For the quarter ending December 31, the company generated revenue of $79.8 million, missing the consensus forecast of $122.08 million. The revenue figure also represents a decline from the $94.93 million reported in the same period a year earlier.
The company’s bottom line showed a wider-than-expected loss of $0.42 per share, a stark deviation from the anticipated loss of just $0.08 per share. These disappointing results signal mounting pressure on the company's profitability following the April 2024 Bitcoin halving, which reduced mining rewards and increased operational costs across the industry.
Company Pivots to AI Hosting With 730 MW Power Expansion
In response to tightening margins in its traditional mining business, Core Scientific is accelerating its strategic shift toward hosting and colocation services for high-performance computing (HPC) and artificial intelligence (AI) clients. CEO Adam Sullivan confirmed the company is building a 1.5 gigawatt pipeline of leasable capacity to attract these new revenue streams.
To support this initiative, the company announced a significant power capacity expansion of approximately 730 megawatts. This includes a new push into Texas, which will account for about 430 megawatts of the new power. This pivot aims to create more durable growth and reduce the company's direct exposure to the volatility of bitcoin mining economics.
Riot Platforms Crushes Revenue Forecasts by Over 300%
Highlighting a sharp divergence within the sector, competitor Riot Platforms (RIOT) reported exceptionally strong fourth-quarter results. The company posted revenue of $647.4 million, surging past analyst expectations of $157.4 million and marking a substantial increase from $376.7 million a year prior. Despite the massive revenue beat, RIOT shares traded flat in after-hours activity. The contrasting fortunes of Core Scientific and Riot underscore a potential flight to quality, where investors favor miners with superior operational efficiency and scale in the challenging post-halving market.
