Bernstein, a research and brokerage firm, remains optimistic about Bitcoin mining company Core Scientific, despite a recent 30% drop in share prices.
Positioning in the AI-driven BTC Mining Market
Core Scientific’s stock price has fallen sharply due to doubts raised by the Chinese AI startup DeepSeek, questioning the company's business model sustainability. However, Bernstein believes Core Scientific is well-positioned in the market and distinct due to its AI-driven mining operations.
Core Scientific Bankruptcy Details
Core Scientific emerged from bankruptcy in January 2024 after its reorganization plan was approved, allowing it to cut $400 million in debt and resume operations. The early months of 2024 saw successful mining of 2,825 BTC and a net income of $210.7 million, though a net loss of $804.9 million was recorded in the second quarter.
Core Scientific Resilience
Despite financial setbacks, Core Scientific remains a leading player in the Bitcoin mining industry, having mined over 5,052 Bitcoin year-to-date, generating over $350 million in revenue. Recently, Core Scientific announced a partnership with AI startup CoreWeave to provide data center services, expected to generate over $100 million in potential revenue.
Bernstein remains confident in Core Scientific's future due to its strong positioning in the AI and Bitcoin mining industry.
