Core Scientific CORZ Stock Plunges 22.01% Amid Strategic Shift to AI, Execution Risks

The share price fell to its lowest level since September 2025 today, with an intraday decline of 9.30%.

Core Scientific (CORZ) has seen its stock plummet 22.01% over four consecutive days, extending a downward trend linked to its strategic shift from Bitcoin mining to AI infrastructure. The company, which aims to repurpose its data centers for high-performance computing, faces execution risks amid a transition that requires scaling capacity to 250MW by 2025. A key catalyst for recent volatility was the October 2024 shareholder rejection of a $9 billion acquisition by CoreWeave (CRWV), a deal critics deemed too reliant on the latter’s volatile stock. Post-rejection, CoreWeave lost $33 billion in market value, amplifying uncertainty for CORZ as it operates independently.

Financial pressures persist despite a 12-year, $10 billion contract with CoreWeave, which accounts for 85% of CORZ’s revenue. Q1 2025 results showed a 16% revenue drop to $79.5 million, with adjusted EBITDA at -$6.1 million. While the company projects profitability in 2025 with an EPS of $0.73, current metrics—such as a 15x forward P/E ratio—highlight valuation skepticism. Risks include supply chain delays in infrastructure expansion and continued reliance on low-margin Bitcoin-related earnings, contrasting with higher-margin colocation services.

Analysts remain divided on the firm’s ability to execute its transition strategy effectively. Optimists point to the growing demand for AI processing power and the long-term contract with CoreWeave as tailwinds, while pessimists cite liquidity concerns and the high cost of upgrading legacy infrastructure. The company’s ability to scale its 250MW target will be critical in determining whether it can meet its 2025 profitability forecast or if further capital infusions will be needed to sustain operations in the interim.