Leopold Aschenbrenner Cuts Core Scientific (CORZ) Stake
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Fazen Markets Editorial Desk
Collective editorial team · methodology
bitcoin-mininginstitutional-investing
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Former ARK Invest analyst Leopold Aschenbrenner sold a 7.4% stake in bitcoin miner and AI infrastructure provider Core Scientific, Inc. (CORZ), a transaction disclosed on May 31, 2026. The sale occurred during a period of industry-wide stress for public mining companies. Aschenbrenner remains a significant shareholder following the transaction.
Aschenbrenner's partial exit follows a significant re-rating of publicly traded bitcoin miners throughout early 2026. The sector has underperformed the broader cryptocurrency market, with the Valkyrie Bitcoin Miner ETF (WGMI) declining 22% year-to-date versus Bitcoin's 8% gain. Investor sentiment has soured due to compressed mining margins post-halving and rising energy costs.
The transaction's timing coincides with intense scrutiny on the viability of high-density computing for artificial intelligence within mining business models. Core Scientific is a key player in this convergence, having signed a series of high-profile contracts to host AI workloads. This strategic pivot has divided analyst opinion on the company's true valuation drivers.
Previous notable insider sales in the sector, such as a 5% divestment by a Riot Platforms executive in March 2026, preceded further share price weakness. The market often interprets these moves as signals of internal assessment on near-term financial headwinds.
The transaction reduced Aschenbrenner's holdings by approximately 7.4%. Core Scientific's stock closed at $12.45 on the day of the filing, representing a 34% decline from its 52-week high of $18.90. The company's market capitalization stands at roughly $2.8 billion.
Core Scientific's operational metrics show a mixed picture. The company mined 432 bitcoin in April while simultaneously expanding its AI hosting capacity to 270 megawatts. Its hash rate remains a dominant 25 exahashes per second.
The stock's performance lags behind key peers. Marathon Digital (MARA) has declined 18% year-to-date, while Riot Platforms (RIOT) is down 25%. This underperformance highlights the sector-wide challenges that are likely influencing portfolio decisions.
| Metric | Core Scientific (CORZ) | Peer Average |
|---|---|---|
| YTD Performance | -28% | -21% |
| P/E Ratio (TTM) | 18.5 | 22.1 |
The sale creates a technical overhang on CORZ shares, adding selling pressure to a stock already in a downtrend. It may signal to other institutional holders that a key thought leader is taking risk off the table, potentially triggering follow-on selling in CORZ and correlated mining stocks like CleanSpark (CLSK) and Hut 8 (HUT).
A counter-argument is that this is a routine portfolio rebalancing act. Aschenbrenner retains a substantial position, suggesting this is a profit-taking move rather than a wholesale loss of conviction. The long-term thesis for AI infrastructure demand remains intact, supported by contracts with firms like CoreWeave.
Trading flow data indicates continued net short interest in the mining sector ETF WGMI, which has risen to 4.2% of float. This positioning suggests the market anticipates further downside. The sale provides a fundamental data point that supports this bearish sentiment.
Immediate focus shifts to Core Scientific's monthly operational update for May, due by June 5. Investors will scrutinize bitcoin production figures and the utilization rate of its AI hosting division for signs of operational strength or weakness.
The next major catalyst is the company's Q2 2026 earnings report, anticipated in early August. Guidance on capital expenditure for AI infrastructure expansion and commentary on power contracting costs will be critical for the stock's direction.
Technical levels to monitor include the $11.50 support zone, a breach of which could signal a fall toward the $9.00 range. Conversely, a recovery above the 50-day moving average near $13.80 would be necessary to invalidate the current bearish trend.
Insider sales are a normal part of portfolio management and do not automatically indicate pessimism. However, a sale of this size during a market downturn can be interpreted as a signal that a knowledgeable investor believes near-term headwinds outweigh potential gains. Retail investors should assess their own risk tolerance and the company's long-term fundamentals.
Aschenbrenner's transaction is the largest disclosed insider sale at Core Scientific in 2026. Earlier activity was characterized by smaller, routine option exercises and sales for tax purposes. The magnitude of this move makes it an outlier and thus more noteworthy for market participants tracking shareholder confidence.
The AI hosting model provides a diversified revenue stream that is less correlated to bitcoin's price volatility. However, it requires significant upfront capital expenditure and faces intense competition from pure-play data center operators. Success depends on securing long-term contracts with creditworthy clients at profitable power rates, which remains unproven at scale.
A significant insider sale reinforces bearish sentiment against a backdrop of sector-wide stress.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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