CORZ stock price has nosedived in the past few days, erasing billions of dollars in value. Core Scientific plunged to $15, down 36% from its year-to-date high, 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 due to the recent decision by its investors to reject CoreWeave’s $9 billion acquisition, one of the biggest companies in the AI data center industry.
Many investors argued that the offer undervalued the company’s business, which they expect will continue to perform well in the coming years as the data center industry grows. Also, many voters opposed the deal’s structure because it lacked a cash component.
Second, CORZ stock has crashed due to ongoing industry weakness, with top companies in 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, the Core Scientific stock price has crashed amid the ongoing sell-off in 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’s stock price has also crashed after its recent earnings missed expectations. Its revenue dropped to $81.1 million from the previous $95.4 million. This retreat was due to its Bitcoin mining business, with self-mining revenue falling to $57.8 million and hosted mining revenue crashing to $8.7 million.
The Bitcoin mining business was offset by High Density Colocation, which jumped to $15.3 million from $10.3 million previously. Core Scientific also reported a big loss of over $146 million.
CORZ Stock Price Technical Analysis
The daily timeframe chart shows that CORZ stock has been in a strong downward trend over 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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