Is Core Scientific’s AI Pivot Working? New Investor Takes Big $22 Million Position

CORZ +3.20%

Key Points

• Asset manager VR Advisory Services acquired more than 1.2 million CORZ shares in the third quarter, increasing its U.S. equity exposure by approximately $21.7 million.

• The transaction represents 5.3% of the fund’s reportable assets under management (AUM) at quarter-end.

• The move marked a new position for VR Advisory, which did not report holding CORZ in the previous period.

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On November 14, asset manager VR Advisory Services disclosed a new position in Core Scientific (NASDAQ:CORZ), acquiring 1.2 million shares—an estimated $21.7 million stake.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 14, VR Advisory Services established a new position in Core Scientific (NASDAQ:CORZ), acquiring 1.2 million shares during the third quarter. The estimated value of the position at quarter-end was $21.7 million based on the closing prices at September 30.

What Else to Know

This new position accounts for 5.3% of VR Advisory Services’ reportable U.S. equity AUM as of quarter-end.

Top holdings after the filing:

• NASDAQ: KSPI: $88 million (21.3% of AUM)

• NYSE: YPF: $87.6 million (21.2% of AUM)

• NASDAQ: HEPS: $42.9 million (10.4% of AUM)

• NYSE: IRS: $31.4 million (7.6% of AUM)

• NYSE: AL: $23.9 million (5.8% of AUM)

As of Wednesday, CORZ shares were priced at $15.95, down 3% over the past year and well underperforming the S&P 500, which is up about 13% in the same period.

Company Overview

Metric

Value

Price (as of Wednesday)

$15.95

Market capitalization

$4.9 billion

Revenue (TTM)

$334.2 million

Net income (TTM)

($768.3 million)

Company Snapshot

• Core Scientific provides digital asset mining, blockchain infrastructure, and colocation services, generating revenue from mining operations and hosting solutions.

• The company operates a dual business model, earning from proprietary digital asset mining as well as hosting and managing data center facilities for third-party clients.

• Primary customers include institutional-scale digital asset miners and enterprises seeking secure, high-performance blockchain infrastructure in North America.

Core Scientific, Inc. is a leading provider of blockchain infrastructure and digital asset mining services in North America, operating a network of advanced data centers. The company leverages proprietary technology and large-scale facilities to optimize mining efficiency and deliver robust hosting solutions to institutional clients. Its integrated business model and focus on operational scale position it as a key player in the evolving digital asset infrastructure market.

Foolish Take

Despite its sharp swings, Core Scientific’s recent rally has rekindled long-term interest in digital-infrastructure names—especially as the company pivots harder into high-density colocation and AI-related workloads. For investors, VR Advisory’s move signals conviction not just in crypto-linked mining, but in Core’s broader transition away from revenue streams tied to volatile bitcoin output and toward more stable, scaled data-center economics.The company's third-quarter results reinforce that shift. While total revenue fell to $81.1 million from $95.4 million a year ago, high-density colocation grew meaningfully, rising to $15 million from $10.3 million, and gross profit swung to $3.9 million from a $0.2 million loss. Core still posted a steep $146.7 million net loss, but that reflected large non-cash fair-value adjustments rather than operational deterioration. Liquidity remained strong at $694.8 million, including $453.4 million in cash and $241.4 million in bitcoin—giving the company room to fund its AI-infrastructure buildout.For VR Advisory, which typically concentrates capital in distressed, deep-value, or high-conviction special situations, a 5.3% allocation is notable—especially amid a pending all-stock acquisition by CoreWeave that could further reshape the investment case. For long-term investors, the big question is whether Core’s pivot toward AI-driven colocation can offset the structural volatility of digital-asset mining.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Reportable Assets: Investments that must be disclosed in regulatory filings, typically meeting certain thresholds or criteria.

Position: The amount of a particular security or asset held by an investor or fund.

Trailing Twelve Months (TTM): The 12-month period ending with the most recent quarterly report.

Colocation Services: Renting space in a data center for clients to place their own computing hardware.

Digital Asset Mining: The process of using computers to validate blockchain transactions and earn cryptocurrency rewards.

Blockchain Infrastructure: The hardware and software systems that support blockchain networks and applications.

Proprietary Technology: Technology owned and developed by a company, not licensed from others.

Institutional-Scale: Refers to services or operations designed for large organizations, not individual consumers.

Integrated Business Model: A company structure that combines multiple related business activities within one organization.

Data Center Facilities: Specialized buildings housing computer systems and related components, such as servers and storage.

Hosting Solutions: Services that provide clients with space, power, and connectivity for their computing equipment in a data center.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Joint Stock Kaspi.kz. The Motley Fool has a disclosure policy.

Is Core Scientific's AI Pivot Working? New Investor Takes Big $22 Million Position was originally published by The Motley Fool