Core Scientific (NASDAQ:CORZ)
As of the end of August, Core Scientific (NASDAQ:CORZ) had mined 1,334 bitcoins (BTC-USD), an M/M increase of 9.3% made possible by the deployment of 17K new servers during the month. Its hashrate, or mining capacity, also improved, climbing to 12.69 EH/s exahashes per second in August from 10.9 EH/s in July. The company’s ongoing capacity expansion in Texas is what led to the rise.
In conformity with the present trend among bitcoin (BTC-USD) miners amidst the bear market, Core Scientific (NASDAQ:CORZ) sold 1,125 BTC at an average price of $23.01K for total proceeds of just about $25.9M. The token is changing hands at $19.74K at the time of writing. The company, meanwhile, held 1,409 BTC and ~$47.2M in cash.
Before the end of 2022, the BTC miner plans to deploy 43K more self-mining ASIC servers, bringing its total to 174,716. As of August 31, the company reported that 59% or thereabouts of its hashrate was generated by self-mining. Prior to this, (Aug. 5) Core Scientific reported that in July, bitcoin production increased 10.4% M/M.
Outlook on Core Scientific and Stronghold Digital with Buy Ratings
On Tuesday, H.C. Wainwright analyst Kevin Dede began monitoring shares of Core Scientific (NASDAQ:CORZ) and Stronghold Digital Mining (NASDAQ:SDIG), two companies that mine bitcoin (BTC-USD).
In a note to customers, Dede explicitly mentioned the size and management of Core Scientific’s (NASDAQ:CORZ) BTC mining operation as well as its capacity to manage the procurement, shipping, and deployment of mining equipment.
In August, the company’s bitcoin (BTC-USD) output increased by 9.3% to 1,334 M/M, but it sold 1,125 BTCs to increase liquidity in the face of a persistent market decline.
Furthermore, the analyst pointed out that “managerial competency factors prominently in addressing scale needs where we think Core’s team goes deeper in its founder, a Wall Street knowledgeable veteran senior executive of Apollo Global Management (APO)”.
Remember, however, that Core Scientific (NASDAQ:CORZ) investors were cautioned by Seeking Alpha’s Quant Rating at the end of August that the company faces a significant chance of underperformance due to sluggish momentum and subpar profitability. As the price of bitcoin (BTC-USD) declines, shares in CORZ have lost approximately 80% of their value this year.
CORZ, in comparison, has a Buy recommendation from SA contributor IncomeBent Investments due to its superior BTC output figures.
Through its process of “waste” coal reclamation, Stronghold Digital (NASDAQ:SDIG), which also runs coal refuse power generation facilities, is “perhaps the most singularly proactive, environmentally conscious bitcoiner—recent efforts to strengthen the balance sheet also serve to advance the power production agenda,” Dede wrote in a separate note.
Given that shares of the environmentally-conscious miner have fallen over 90% since the beginning of 2022, the average Wall Street Analysts’ Rating classifies SDIG stock as a Strong Buy (4 Strong Buy, 1 Hold).
Featured Image- Megapixl @Dedmityay