Core Scientific’s scarce 2.1 GW power footprint and $6.09 billion lease backlog offer substantial AI-infrastructure upside, but returns hinge on executing conversions amid concentrated customers, Texas permitting risk, and heavy debt.
Overview
Core Scientific (NASDAQ: CORZ) is a North American digital infrastructure company pivoting from Bitcoin self-mining toward high-density colocation for AI and HPC. It operates across five U.S. states and controls approximately 2.1 GW of gross utility power, a scarce resource as AI racks require 100–120+ kW and grid interconnections can take years. Long-term contracts include a 12-year CoreWeave agreement for roughly 590 MW and a 500+ MW AMD agreement; contracted future lease payments exceed $6.09 billion. In Q2 2026, revenue rose 108.8% year over year to $164.20 million, beating consensus by 21.75%, while colocation revenue was $136.70 million at a 59% segment gross margin. GAAP net loss of $1.155 billion and EPS of -$3.32 were heavily distorted by a $1.05 billion non-cash warrant revaluation. Liquidity was $2.55 billion, but the company carries approximately $4.30 billion of long-term debt, including $3.30 billion of 7.75% notes due 2031. **The investment case is a power-backed AI conversion with substantial contracted visibility; the principal uncertainty is execution under leverage and permitting constraints.** Shares traded near $16, with a $42.69 probability-weighted five-year target and near-term catalysts in CoreWeave/AMD commissioning and financing optimization.