Jul 9, 2024 - Economy
Bitcoin miner Core Scientific is outperforming bitcoin
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Bitcoin's price has underperformed the top bitcoin mining stocks recently, and one of them stands out.
Why it matters: Core Scientific (CORZ) has posted returns that far outshone the digital asset.
By the numbers: Core Scientific mined 430 BTC in June. Marathon brought in 590 and CleanSpark 445.
The big picture: Investors buy mining stocks because they believe it's a way to get exposure to Bitcoin (BTC) at a better price than buying it directly.
- Core Scientific CEO Adam Sullivan argued to Axios this year that his company was well-positioned because it had a head start on other miners as it came out of bankruptcy in January.
- It had several projects that it could now finish, putting it ahead in growing its share of the total computing power chasing new bitcoins.
The latest: Two key pieces of news seem to have helped the price of CORZ.
- It announced two deals in June with CoreWeave, to provide close to 300 MW worth of computing infrastructure, giving it exposure to the booming AI market as well as bitcoin.
- This week, it announced it is retiring $260 million of debt in a convertible note, by turning it into 45 million new shares in the company.
What we're watching: The top publicly traded miners are adding hashpower, while others quit.
- As some drop out, mining gets easier, which makes it more profitable for those who stay in.
