Core Scientific appoints KPMG as new auditor

Core Scientific, Inc. (NASDAQ:CORZ), a $2.63 billion market cap company specializing in finance services with annual revenues of $510.67 million, has announced a change in its certifying accountant. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 6.72, indicating robust financial flexibility. The company’s Audit Committee confirmed on Monday the appointment of KPMG LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025.

The decision was made effective immediately, replacing Marcum LLP, which was dismissed on the same day. Core Scientific stated that Marcum’s audit reports for the fiscal years ending December 31, 2024, and December 31, 2023, did not contain any adverse opinions, disclaimers, or qualifications regarding the company’s financial statements.

Core Scientific reported that there were no disagreements with Marcum on accounting principles, practices, or auditing scope that would have affected their reports. However, the company did acknowledge material weaknesses in its internal control over financial reporting, which included issues with change management controls, user access controls, and overall effectiveness of internal controls. These weaknesses were detailed in Core Scientific’s Annual Report on Form 10-K for the year ended December 31, 2023.

As part of the transition process, Core Scientific has provided Marcum with a copy of the report filed with the Securities and Exchange Commission (SEC) and has requested Marcum to furnish a letter to the SEC regarding their agreement with the statements made in the report. Marcum’s response is included as Exhibit 16.1 in the filing.

The company also clarified that it had not consulted with KPMG on any accounting principles or transactions that might have influenced their decision in the accounting, auditing, or financial reporting issues during the fiscal years in question.

This change in auditors comes as Core Scientific continues to navigate the financial services sector and maintain compliance with regulatory standards. The information provided is based on the company’s recent SEC filing. Despite showing a significant 169% return over the past year, InvestingPro analysis suggests the stock is currently trading above its Fair Value. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which covers this and 1,400+ other US equities with detailed analysis and actionable intelligence.

In other recent news, Core Scientific Inc . reported a decrease in its Bitcoin mining rate for February, mining 7.7 Bitcoins per day, down from 8.3 in January. This decline also led to a drop in Bitcoin mining revenue, with February’s estimated revenue at $20.6 million compared to $25.5 million in January. Cantor Fitzgerald responded by lowering its price target for Core Scientific shares to $20, maintaining an Overweight rating despite the downturn, citing potential for future diversification. In contrast, H.C. Wainwright and Compass Point both reaffirmed their Buy ratings, with price targets of $17 and $20 respectively, highlighting confidence in Core Scientific’s association with CoreWeave and its potential for future growth.

Core Scientific announced an extension of its contract with CoreWeave, which is expected to generate over $10 billion in revenue over 12 years, further supporting the company’s financial outlook. Additionally, Core Scientific appointed Jim Nygaard as its new Chief Financial Officer, effective March 17, 2025, as part of a planned succession following the company’s emergence from Chapter 11. Nygaard brings extensive experience in mergers and acquisitions and corporate finance, which is anticipated to aid the company in its growth and operational strategies. These developments come as Core Scientific continues to expand its operations, including converting data centers to support artificial intelligence workloads.

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