Core Scientific (NASDAQ: CORZ) stock price has gone parabolic this week, making it the best-performing Bitcoin mining company in Wall Street. It soared to a record high of $8.37 on Thursday, 220% above its lowest point this year. This surge brought its market cap to over $1.4 billion.
Top Core Scientific news
Core Scientific, a leading Bitcoin mining company, has made headlines in the past few days. Like other mining companies, it has benefited from the elevated Bitcoin prices. Bitcoin soared to over $71,000 this week and some analysts believe that it has more upside.
In a statement on Thursday, Robert Kiyosaki hinted that Bitcoin will surge to over $300k in the long term. Similarly, Mike Novogratz, a billionaire, said that the coin could move to over $100,000 if it manages to move above the year-to-date high of $73,600.
This rally could happen as investors embrace a risk-on sentiment at a time when central banks have started cutting interest rates. The Bank of Canada became the first G7 central bank to cut on Wednesday while the ECB slashed its rates by 0.25% on Thursday. Core Scientific and other mining companies do well when Bitcoin is rising.
Core Scientific also expanded its business to take advantage of artificial intelligence this week by partnering with CoreWeave. It will provide about 200 MW of infrastructure to host the company’s high-performance computing services.
In other news, the company rejected an unsolicited offer from CoreWeave, according to several media reports. This rejection is likely because Core Scientific believes that the offer severely undervalues its business.
It could also be that the company wants another offer, which is likely. In many cases, as we saw with Anglo-American and BHP, companies reject an initial offer as a negotiation tactic. It also likely expects an offer from another company like Marathon Digital.
I believe that the Bitcoin mining industry is ripe for consolidation as the hash rate soars and mining difficulty rises.
Core Scientific recently announced strong financial results. Its revenue jumped to over $179 million in the first quarter while its operating income soared to $55.2 million. This performance was primarily because of the higher Bitcoin prices. It ended the quarter with almost $100 million in cash.
Core Scientific stock price analysis
Turning to the 4H chart, we see that the Core Scientific share price has done well in the past few months. This rally happened after the company formed a double-bottom pattern at $2.62. In most cases, this is one of the most bullish patterns in the market. It has already crossed the crucial neckline of the pattern at $4.26.
The stock has remained above the 50-period moving average while oscillators hint that the stock has been overbought. Therefore, the CORZ share price will likely continue rising as buyers target the next key resistance at $10. This rally will happen as investors anticipate a bidding war for the company.
The alternative scenario is where the stock crashes and retests the support at $5.90, its highest swing in January.
