Press Alt+1 for screen-reader mode, Alt+0 to cancelAccessibility Screen-Reader Guide, Feedback, and Issue Reporting
timothy sykes logo

Stock News

Core Scientific Correlates to Cryptocurrency’s Sway

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 3/28/2025, 2:32 pm ET 6 min read
Core Scientific Correlates to Cryptocurrency’s Sway Thumbnail

Core Scientific Inc.’s stock is likely feeling pressured due to news of a key executive’s sudden departure and potential financial instability, impacting investor confidence. On Friday, Core Scientific Inc.’s stocks have been trading down by -4.0 percent.

Cryptocurrency Contraction: Influence on Core Scientific

  • The plummeting value of Bitcoin has rippled across the cryptocurrency landscape, affecting various entities within the sector and leading to a downturn in related stocks.
  • Investors are reeling from Core Scientific’s reported Q4 earnings, which revealed a loss per share of $0.60, lagging behind the previous year’s loss and falling short of market forecasts.
  • Revenue woes continue as Core Scientific posted a quarterly revenue of $94.9M, failing to meet the predicted $98.8M benchmark.
  • While Bitcoin’s drop of 5% stirs unrest in cryptocurrency circles, Core Scientific’s stock is not immune to this sector-wide tremor.
  • February’s downturn in Core Scientific’s Bitcoin mining output sees a reduction to 215 mined bitcoins from January’s 256, hinting at operational strain.

Candlestick Chart

Live Update At 14:32:28 EST: On Friday, March 28, 2025 Core Scientific Inc. stock [NASDAQ: CORZ] is trending down by -4.0%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Earnings Snapshot: Core Scientific’s Financials

Navigating the world of trading can be challenging, with many aspiring traders focusing solely on increasing their income. However, as millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This wisdom highlights the importance of managing and preserving profits effectively. Successful trading requires not just earning impressive returns but also strategically managing those earnings to ensure long-term financial stability. Traders must learn to strike a balance between generating profits and minimizing unnecessary risks to safeguard their capital.

In a wave of red ink, Core Scientific’s recent financial disclosures paint a challenging picture. Year-over-year comparisons reveal a concerning gap, with the company posting substantial losses both in earnings and in production output. Furthermore, a deeper glimpse into the key ratios uncovers profitability issues with margins steeply negative across several areas.

Despite having a sizable current ratio hinting at an ability to meet short-term liabilities, the long-term picture for Core Scientific looks less robust. The enterprise value stands tall at over $2.6B, but the company’s valuation leaves much to be desired with a price-to-book value that’s negative. This might be a red flag for long-term investors worried about financial health beyond immediate solvency.

Core Scientific’s income statement for Q4 presents a grim image. Net income plunges into the negatives, painting a stark contrast against staggering expenses. Despite a promising top-line revenue of $424M for the year, profits remained elusive. Gross margins barely meet costs, evidence of significant operational hurdles. Even when the dust settles from falling Bitcoin prices, current investor sentiment remains skeptical, as highlighted by the recent slide in stock performance.

The balance sheet echoes this plight. Core Scientific’s total liabilities far outweigh the equity, opening a discussion about sustainable financial practices in the long term. With limited cash on hand relative to obligations and a negative trajectory in earnings, the upcoming phases for Core Scientific will require tight fiscal discipline or unforeseen growth opportunities.

The Meaning Behind the Numbers

A variety of factors, both company-specific and industry-wide, have played into Core Scientific’s recent financial performance. Bitcoin’s volatility directly translates into market whims, often heavily impacting companies so deeply enmeshed in cryptocurrency-related activities. The 5% Bitcoin dip not only showcases market fragility but highlights just how tethered Core Scientific is to digital currencies’ errant values.

The company’s struggles to meet earnings expectations also underscore potential operational inefficiencies or growth-related missteps. Despite technology investments or asset expansions, the stream of revenues hasn’t culminated into proportionate earnings growth. With Bitcoin production seeing a decrease and significant missed earnings estimates, there are clear signs that operational adjustments may be needed. The implications reach beyond just a quarterly report. Investors are left in a precarious position, weighing the company’s promising technology against its fiscal execution challenges.

These financial revelations, juxtaposed with a broader sector under pressure, frame a narrative of a company caught in larger crypto-market stormwinds. Shareholders must constantly calibrate their perspectives, anticipating future swings while acknowledging evidentiary performance data. Meanwhile, Core Scientific grapples with positioning and strategizing amidst the unpredictability of an industry still defining its own parameters.

More Breaking News

Conclusion

The steep decline in Core Scientific’s fortunes, underscored by both contextual news events and statistical revelations, puts the spotlight on the interplay between market realities and corporate agility. As Bitcoin’s sway ebbs and flows, reflecting broader economic currents, Core Scientific braces for continued volatility. In navigating this turbulent landscape, Core Scientific might do well to heed the advice of millionaire penny stock trader and teacher Tim Sykes, who says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” Whether it capitalizes on emerging opportunities in a crypto-resilient future hinges on the next wave of strategic decisions and environmental adaptations. In the panorama of technology and finance, the narrative of Core Scientific remains dynamic and driven by fluctuating externalities, prompting traders to glance not just at the numbers, but the broader story these elements convey.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

ts swipe photo
Join Thousands Profiting From Smart Trades!
TRADE LIKE TIM

We use cookies to provide you with the best online experience. If you continue browsing, we consider that you accept our Cookie Policy , and also agree to the terms of our Privacy Policy and Terms of Use.

notification icon
Subscribe to receive notifications