CORZ stock price has nosedived in the past few days, erasing billions of dollars in value. Core Scientific plunged to $15, down by 36% from its highest point this year, lowering its market capitalization from $7.1 billion to $4.6 billion.
Reasons Core Scientific Stock is Crashing
There are at least four main reasons why the CORZ stock price is in a free fall. First, the decline is because of the recent decision by its investors to reject the $9 billion acquisition by CoreWeave, one of the biggest companies in the AI data center industry.
Many investors argued that the offer undervalued its business, which they expect will continue doing well in the coming years as the data center industry grows. Also, many voters disagreed with the deal’s structure because it did not have a cash aspect.
Second, CORZ stock has crashed because of the ongoing weakness in the industry, with top companies being in a steep decline. CoreWeave stock crashed to $80 from the all-time high of $187, while IREN dived to $50 from the record high of $76. Nebius shares plunged to $90 from the record high of $140.
Similarly, other companies in the AI industry have dropped, with Nvidia plunging to $160 from the record high of $194. Other firms like Oracle and SoundHound have also plunged.
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Additionally, Core Scientific stock price has crashed because of the ongoing sell-off in the Bitcoin treasury companies. Top companies in the industry, like Strategy, Metaplanet, Semler Scientific, and KindlyMD have all crashed this year. CORZ is a treasury company with 2,116 coins in its balance sheet.
Core Scientific stock price has also crashed after its recent earnings came short of expectations. Its revenue dropped to $81.1 million from the previous $95.4 million. This retreat was because of its Bitcoin mining business, with the self-mining revenue falling to $57.8 million and its hosted mining crashing to $8.7 million.
The Bitcoin mining business was offset by the High Density Colocation, which jumped to $15.3 million from the previous $10.3 million. Core Scientific also reported a big loss of over $146 million.
CORZ Stock Price Technical Analysis
The daily timeframe chart shows that the CORZ stock price has been in a strong downward trend in the past few weeks, moving from a high of $23.3 to a low of $15. It has moved to the 50% Fibonacci Retracement level and also crossed the 50-day and 100-day Exponential Moving Averages (EMA).
Core Scientific’s Relative Strength Index (RSI) and the MACD indicators have continued falling, with the former moving to the oversold level at 30.
Therefore, technical analysis suggests that the CORZ share price will continue falling as sellers target the next key support level at $12.8, the 61.8% Fibonacci Retracement level.
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