Core Scientific's 5.07% Drop Amid 57.7% Volume Plunge Ranks 469th as AI Pivot Gains Traction

Market Snapshot

, 2025, , ranking the stock 469th in terms of trading activity for the day. , within its 52-week range of $6.20 to $23.63, and maintains a market capitalization of $6.68 billion. Despite the decline, recent institutional activity suggests growing confidence, with several firms increasing their stakes in the company.

Key Drivers

The most immediate catalyst for Core Scientific’s volatility was the rejection of a $9 billion acquisition offer by CoreWeave (CRWV) at a shareholder vote. This decision, announced in late October, ended what had been a high-profile merger attempt and left the company free to pursue independent growth strategies. Analysts and investors interpreted the outcome as a strategic win for Core Scientific, which now retains flexibility to negotiate with multiple hyperscale clients rather than being tied to a single entity. The termination of the deal also removed uncertainty about the company’s future direction, potentially attracting buyers seeking standalone AI infrastructure exposure.

The stock’s performance was further influenced by a wave of analyst upgrades following the failed acquisition. , , maintaining a “Buy” rating. These moves reflected optimism about Core Scientific’s ability to leverage its existing infrastructure for AI hosting and (HPC) workloads. The firm’s pivot from Bitcoin mining to AI infrastructure—evidenced by its multiyear contracts and plans to expand hosting capacity—was cited as a key differentiator. For instance, Core Scientific has outlined plans to deliver 900 megawatts of gross AI hosting capacity, , .

Economic incentives for AI hosting also played a role in shaping market sentiment. News articles highlighted that AI hosting generates significantly higher revenue per megawatt compared to Bitcoin mining. For example, , , underscores the financial appeal of transitioning infrastructure. Core Scientific’s existing contracts with CoreWeave and its focus on long-term, dollar-denominated hosting agreements position it to capitalize on this trend. Additionally, the company’s access to low-cost power in Texas, particularly through ERCOT’s competitive energy market, enhances its cost advantage over rivals in higher-cost regions.

Institutional investor activity further reinforced the stock’s resilience. Hedge funds and asset managers, including HHM Wealth Advisors LLC, Osaic Holdings Inc., and Advisors Asset Management Inc., increased their holdings in Core Scientific during the second quarter of 2025. These inflows suggest growing conviction in the company’s ability to execute its AI infrastructure strategy. However, , particularly in the AI and .

The broader industry context also shaped Core Scientific’s trajectory. . This trend, driven by the superior economics of AI hosting, has accelerated demand for . Core Scientific’s hybrid model—retaining Bitcoin mining operations while expanding AI hosting—positions it to benefit from both revenue streams, though its high beta suggests investors should brace for continued volatility.

In summary, Core Scientific’s recent performance reflects a confluence of strategic clarity, analyst optimism, and favorable industry dynamics. The rejection of the CoreWeave acquisition, combined with a and strong institutional backing, has set the stage for long-term growth. However, the stock’s high volatility and dependence on macroeconomic factors, such as power costs and AI demand, mean that its trajectory will remain closely tied to both operational execution and broader market sentiment.