Paloma Partners Reduces Core Scientific Holdings by 2.5 Million Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy CORZ?
Source: Fool
- Share Reduction Details: According to an SEC filing dated February 17, 2026, Paloma Partners Management Co reduced its holdings in Core Scientific by 2,547,000 shares, with an estimated transaction value of $44.41 million, reflecting a $46.32 million decline in the fund's position value over the quarter, indicating the impact of market volatility on its investment portfolio.
- Current Holdings Analysis: Following the sale, Core Scientific now accounts for only 0.49% of Paloma Partners' reportable U.S. equity assets, with its remaining 185,000 shares valued at $2.69 million at year-end, suggesting a significant reduction in the company's importance within the portfolio.
- Market Performance Overview: As of February 17, 2026, Core Scientific shares were priced at $17.23, reflecting a 39.1% increase over the past year, outperforming the S&P 500 by 25.81 percentage points, demonstrating the company's relative strength in the digital asset market.
- Business Model and Risks: Core Scientific generates revenue through self-mining and equipment hosting, and while its stock price reflects improving crypto sentiment, its profitability remains tied to production efficiency and power costs, necessitating investor attention on key metrics like Bitcoin production efficiency and power cost management.
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Analyst Views on CORZ
Wall Street analysts forecast CORZ stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.970
Low
19.94
Averages
27.46
High
40.00
Current: 16.970
Low
19.94
Averages
27.46
High
40.00
About CORZ
Core Scientific, Inc. provides digital infrastructure for high-density colocation services and digital asset mining. The Company operates dedicated, purpose-built facilities for digital asset mining and is a provider of digital infrastructure, software solutions and services to its third-party customers. Its Digital Asset Self-Mining segment consists of digital asset mining for its own account. Its Digital Asset Hosted Mining segment consists of its digital infrastructure and third-party hosting services for digital asset mining. Its Colocation segment consists of providing high-density colocation services to third parties for graphics processing units (GPU)-based high-performance computing (HPC) operations. It employs its own large fleet of computers (miners) to earn digital assets for its own account and to provide hosting services for large digital asset-mining customers, and it is in the process of allocating and converting a significant portion of its 10 facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Core Scientific Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Core Scientific reported a Q4 GAAP EPS of $0.42, exceeding expectations by $0.58, indicating strong profitability despite challenges in revenue generation.
- Revenue Decline: The company’s revenue of $79.8 million represents a 15.9% year-over-year decline, missing market expectations by $36.12 million, highlighting difficulties in maintaining growth in a competitive landscape.
- Data Center Expansion: Core Scientific plans to lease 400 MW of data center capacity to new clients in 2026, a strategic move aimed at addressing the increasing demand for AI computing and laying the groundwork for future revenue growth.
- Rating Upgrade: Following the termination of the CoreWeave deal, BTIG upgraded Core Scientific to a “Buy” rating, reflecting market confidence in the company’s future potential and likely attracting more investor interest.
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Analysis of CORZ Options Contracts and Investment Opportunities
- Put Option Appeal: The current bid for the $13.00 put option is 60 cents, and if an investor sells this contract, they commit to buying CORZ shares at a cost basis of $12.40, representing a 24% discount to the current price of $17.18, making it attractive for potential buyers.
- Yield Potential Analysis: Should the put contract expire worthless, it would yield a 4.62% return on cash commitment, equating to an annualized yield of 22.78%, highlighting the YieldBoost potential that attracts income-seeking investors.
- Call Option Returns: The $21.00 call option has a current bid of 53 cents, and if an investor buys CORZ shares at $17.18 and sells this call, they could achieve a total return of 25.32% if the stock is called away at expiration, showcasing the strategy's appeal.
- Risk-Reward Tradeoff: Given that the $21.00 strike represents a 22% premium to the current stock price, with a 59% chance of the call expiring worthless, investors would retain both their shares and the premium collected, enhancing the attractiveness of this investment strategy.
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- Global Impact: The ongoing conflict in the Middle East is causing turbulence in global markets.
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Key Earnings Reports and Economic Data Next Week
- Earnings Reports: Next week will feature earnings releases from Berkshire Hathaway (BRK-B, BRK-A), which are expected to significantly impact market sentiment, particularly as investors focus on the performance of its investment portfolio.
- Retail Giants' Earnings: Companies like Costco (COST), Target (TGT), Okta (OKTA), and Broadcom (AVGO) will report earnings next week, providing critical insights into consumer spending and the health of the tech sector, which could influence stock valuations.
- Employment Data Release: February's jobs report is set to be released on March 6, with the market keenly watching for changes in job growth and unemployment rates, which will impact the Federal Reserve's monetary policy decisions.
- Federal Reserve Commentary: Additionally, commentary from regional Federal Reserve bank presidents will be available next week, and the market will closely monitor their views on the economic outlook to assess potential future interest rate policies.
See More
Core Scientific Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Core Scientific reported a Q4 GAAP EPS of $0.42, exceeding expectations by $0.58, indicating strong profitability despite challenges in revenue generation.
- Revenue Decline: The company’s revenue of $79.8 million represents a 15.9% year-over-year decline, missing market expectations by $36.12 million, highlighting difficulties in maintaining growth in a competitive landscape.
- Data Center Expansion: Core Scientific plans to lease 400 MW of data center capacity to new clients in 2026, a strategic move aimed at addressing the increasing demand for AI computing and laying the groundwork for future revenue growth.
- Rating Upgrade: Following the termination of the CoreWeave deal, BTIG upgraded Core Scientific to a “Buy” rating, reflecting market confidence in the company’s future potential and likely attracting more investor interest.
See More
Software Stocks Diverge: Some Companies Defy Downtrend
- Diverging Software Performance: Major software companies like Salesforce, Intuit, and Adobe have seen stock prices drop over 50% from their all-time highs, reflecting the severe impact of AI disruption and diminishing investor confidence in the software sector.
- Strong Momentum Stocks: Despite the overall market downturn, companies like Teradata, Arteris, and Clear Secure have scored above 80 on Benzinga Edge's Momentum Score, indicating strong market momentum that could lead to greater gains if the sector rebounds.
- Arteris Price Breakout: The earnings report for Arteris caused its stock to break above the 50-day SMA for the first time since mid-January, accompanied by a bullish MACD crossover, suggesting a relatively strong performance in the software industry with potential for further upside.
- Mitek Systems Recovery: Mitek's positive earnings report has pushed its stock back above the 50-day SMA, with a year-to-date increase of over 35%, and if the fundamental and technical trends hold, MITK shares could see additional gains ahead.
See More
Major Retailers Continue Earnings Season This Week
- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
Analysis of CORZ Options Contracts and Investment Opportunities
- Put Option Appeal: The current bid for the $13.00 put option is 60 cents, and if an investor sells this contract, they commit to buying CORZ shares at a cost basis of $12.40, representing a 24% discount to the current price of $17.18, making it attractive for potential buyers.
- Yield Potential Analysis: Should the put contract expire worthless, it would yield a 4.62% return on cash commitment, equating to an annualized yield of 22.78%, highlighting the YieldBoost potential that attracts income-seeking investors.
- Call Option Returns: The $21.00 call option has a current bid of 53 cents, and if an investor buys CORZ shares at $17.18 and sells this call, they could achieve a total return of 25.32% if the stock is called away at expiration, showcasing the strategy's appeal.
- Risk-Reward Tradeoff: Given that the $21.00 strike represents a 22% premium to the current stock price, with a 59% chance of the call expiring worthless, investors would retain both their shares and the premium collected, enhancing the attractiveness of this investment strategy.
See More
Stock Movers: Chevron, Norwegian, Delta, Lockheed, RTX, Berkshire Hathaway, and Others
- Market Reaction: Stock futures experienced a significant decline on Monday.
- Global Impact: The ongoing conflict in the Middle East is causing turbulence in global markets.
See More
Key Earnings Reports and Economic Data Next Week
- Earnings Reports: Next week will feature earnings releases from Berkshire Hathaway (BRK-B, BRK-A), which are expected to significantly impact market sentiment, particularly as investors focus on the performance of its investment portfolio.
- Retail Giants' Earnings: Companies like Costco (COST), Target (TGT), Okta (OKTA), and Broadcom (AVGO) will report earnings next week, providing critical insights into consumer spending and the health of the tech sector, which could influence stock valuations.
- Employment Data Release: February's jobs report is set to be released on March 6, with the market keenly watching for changes in job growth and unemployment rates, which will impact the Federal Reserve's monetary policy decisions.
- Federal Reserve Commentary: Additionally, commentary from regional Federal Reserve bank presidents will be available next week, and the market will closely monitor their views on the economic outlook to assess potential future interest rate policies.
See More
