Why a $10 Million Bet on Core Scientific Stock Could Pay Off After Its Recent Reset
Key Points
New York City-based Kintayl Capital bought 570,054 shares of Core Scientific worth an estimated $10.2 million during the third quarter.
The position accounts for 6.3% of Kintayl's 13F-reportable assets.
The new stake debuts as Kintayl’s fifth-largest holding.
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New York City-based Kintayl Capital disclosed a new stake in Core Scientific (NASDAQ:CORZ) valued at approximately $10.2 million, according to its November 14 SEC filing.
What Happened
Kintayl Capital LP initiated a new position in Core Scientific (NASDAQ:CORZ) during the third quarter of 2025, acquiring 570,054 shares worth an estimated $10.2 million. The transaction was disclosed in a regulatory filing with the U.S. Securities and Exchange Commission on November 14. The new stake represents 6.3% of Kintayl’s $162.2 million in reportable U.S. equity assets. SEC filing
What Else to Know
Top holdings after the filing:
- NYSE: SAND: $11.6 million (8% of AUM)
- NASDAQ: LBRDK: $11.5 million (7.9% of AUM)
- NYSE: NSC: $11.4 million (7.8% of AUM)
- NYSE: IPG: $10.3 million (7.1% of AUM)
- NASDAQ: CORZ: $10.2 million (7% of AUM)
As of Thursday, CORZ shares were priced at $17.08, down 2% over the past year and well underperforming the S&P 500, which is up nearly 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Thursday) | $17.08 |
| Market Capitalization | $5.3 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 digital currencies and hosting solutions for third-party miners.
- The company's business model centers on operating large-scale mining facilities, earning transaction fees and mining rewards, as well as offering equipment sales and hosting services to institutional clients.
- Primary customers include institutional digital asset miners, blockchain infrastructure clients, and enterprises seeking large-scale, secure hosting and mining optimization solutions.
Core Scientific is a leading provider of blockchain infrastructure and digital asset mining services, operating extensive facilities across North America. The company leverages proprietary software and hardware optimization to deliver high-performance mining and hosting solutions at scale. Its competitive advantage lies in its integrated platform, combining mining operations with advanced colocation and infrastructure management for institutional customers.
Foolish Take
A move into Core Scientific signals a willingness to lean into volatility for the chance at structural upside. For long-term investors, the timing also matters: The company is deep into a strategic shift toward high-density colocation, a business that is scaling quickly even as mining revenue remains under pressure. Gross profit improved modestly in the third quarter despite a 15% year-over-year revenue decline, and liquidity remains substantial at $694.8 million, including $241.4 million in bitcoin. The pending all-stock acquisition by CoreWeave adds another layer of optionality—though also uncertainty—around valuation and long-term direction.
In Kintayl’s portfolio, the new $10.2 million stake sits just below its biggest holdings—roughly in line with other concentrated bets in cash-generating or asset-heavy businesses. That positioning suggests the fund views Core Scientific less as a crypto trade and more as an infrastructure play undergoing a fundamental transition.
For investors keen on the stock, they should focus on the ramp in high-density colocation (up to $15 million in the latest quarter, from $10.3 million a year earlier) and the company’s ability to convert mining-heavy operations into diversified compute infrastructure. The balance sheet and transformation efforts create upside, but losses remain steep and the merger outcome is a key swing factor.
Glossary
Stake: The ownership interest or investment a fund or individual holds in a company.
13F-reportable assets: U.S. equity securities that investment managers must disclose quarterly to the SEC if managing over $100 million.
Position: The amount of a particular security or asset held by an investor or fund.
Assets Under Management (AUM): The total market value of assets a fund or investment manager oversees on behalf of clients.
Colocation services: Renting space and resources in a data center for clients’ computing equipment, often for security and efficiency.
Digital asset mining: The process of using computers to validate blockchain transactions and earn rewards in cryptocurrencies.
Blockchain infrastructure: The hardware, software, and systems that support and maintain blockchain networks and applications.
Institutional clients: Large organizations—such as funds, banks, or corporations—that invest or use services at scale, not individual investors.
Mining rewards: Payments received, usually in cryptocurrency, for successfully validating blockchain transactions.
Hosting solutions: Services that provide physical and technical support for clients’ computing or mining equipment.
Colocation: Housing privately-owned servers and networking equipment in a third-party data center.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Liberty Broadband. The Motley Fool has a disclosure policy.
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