Core Scientific, Inc.

What they do

Core Scientific designs, builds, and operates large-scale data centers, primarily providing high-density colocation (HDC) services to third-party customers for AI and HPC workloads. The company also operates a self-mining digital asset fleet at two facilities and provides hosted mining services to one remaining customer, with hosted mining expected to conclude by December 31, 2026. As of June 30, 2026, it controlled approximately 2.1 GW of gross utility power capacity across 11 data centers in seven U.S. states.

Revenue drivers

• High-Density Colocation (HDC) — Primary revenue source, derived from contracted leases of customer power capacity. Q2 2026 colocation revenue was $136.7 million, up from $10.6 million in Q2 2025, driven by 395 MW billing capacity.
• Self-mining digital assets — Earns digital assets for the company's own account, now a smaller portion of revenue as the company winds down operations.
• Digital asset mining hosting services — Provides hosting for one remaining customer; operations expected to conclude by December 31, 2026.

Recent performance

Q2 2026 total revenue was $164.2 million, up from $78.6 million in Q2 2025, with colocation revenue of $136.7 million and gross profit of $70.0 million. Net loss for Q2 2026 was $1,155.3 million, primarily driven by the change in fair value of warrants due to stock price appreciation. Adjusted EBITDA was $41.1 million, and liquidity (cash and digital assets) was $1,819.4 million. First-half 2026 revenue totaled $279.4 million, versus $159.7 million in the prior-year period. The company reported a negative shareholder equity of $2.42 billion as of June 30, 2026.

Strategy

Core Scientific is converting power capacity across its facilities into long-term contracted HDC revenue streams to increase cash flow predictability and reduce bitcoin market volatility. It announced a partnership with AMD with potential for up to 2.5 GW of leasable capacity, anchored by a 15-year agreement for 530 MW across five sites. The company raised $3.3 billion in 7.75% Senior Secured Notes due 2031 to repay its term loan and fund data center development. It also acquired land in Hunt County, Texas for $233 million to support ~430 MW of power capacity. Management plans to wind down self-mining and hosted mining operations while developing unleased capacity for new customers.

Risks

• Customer concentration — Colocation revenue remains concentrated with a single customer, CoreWeave, which was not yet diversified as of June 30, 2026.
• Negative equity and high debt — Shareholder equity was negative $2.42 billion with $4.30 billion in long-term debt as of June 30, 2026, indicating significant leverage.
• Construction and commissioning delays — 195 MW of leased capacity remained in various stages of construction and commissioning; delays could reduce expected revenue.
• Warrant fair value volatility — Quarterly net losses are driven by changes in the fair value of warrants, causing significant earnings volatility unrelated to operations.

Outlook

Management expects colocation revenue to increase as additional contracted capacity is commissioned and delivered. Billing for 437 MW of capacity as of mid-July 2026 is expected to generate approximately $635 million in average annualized colocation GAAP revenue. The hosted mining operations are projected to conclude by December 31, 2026, and self-mining operations are being wound down.