Core Scientific, Inc. (CORZ) shares experienced a significant surge on Wednesday, fueled by a combination of positive market sentiment and the company’s strategic growth initiatives.
The Federal Reserve’s first interest rate cut in four years, a reduction of 50 basis points, triggered a wave of optimism across financial markets. Investors viewed this move as a sign of easing monetary policy, making riskier assets like stocks and cryptocurrencies more appealing. Core Scientific, a prominent Bitcoin mining company, directly benefited from this shift, with its shares climbing over 20% in the past five days.
The company’s stock price hit an intraday high of $12.48 shortly after the Fed Chairman Jerome Powell announced the rate cut. Adding to the bullish sentiment, Core Scientific CEO Adam Sullivan recently unveiled plans to significantly expand the company’s AI data center services. These ambitious plans, which could potentially boost the company’s valuation to a range of $25 billion to $30 billion, have further attracted investor interest.
As of Wednesday’s close, Core Scientific shares were trading above their 50-day moving average of $10.05 and just shy of their 52-week high of $12.25. The stock finished the day up 4.79% at $12.03, showcasing the strong market confidence in the company’s future prospects.
