The Core Scientific story

What drives the business

• Core Scientific began its shift from digital asset mining toward high-density colocation in 2024, with CoreWeave contracts expanding to approximately 590 MW of leased power capacity through early 2025.
• Its colocation business supplies space, power, cooling and facility operations for customer-owned computing equipment, while its other segments mine digital assets for its own account and host third-party mining equipment.
• The AMD partnership announced in July 2026 is anchored by 15-year agreements for approximately 530 MW across five sites and more than $14 billion of potential base contracted revenue, with potential expansion up to 2.5 GW.
• Total leased capacity represented more than $24 billion of potential contracted revenue, but the 437 MW being billed as of mid-July 2026 equated to approximately $635 million in average annualized colocation GAAP revenue rather than revenue already earned.
• In August 2026, Core Scientific completed its Polaris acquisition for approximately $444 million in cash, securing approximately 440 MW of gross grid-connected power under Oklahoma Gas & Electric agreements for its Muskogee expansion.

What the price assumes

At $16.68, the reverse DCF assumption is not measurable because free cash flow and operating earnings are both negative, leaving the price dependent on future profits rather than an established positive cash flow base.

The shares trade at 12.2x sales against the TenQ sales check’s bar of under 2.5x, and the company passes 0 of 6 Value checks.

Revenue grew 26.4% over the last twelve months, an improvement from the -20.7% annual pace over the last three years, but still below the Growth check’s 34.4% sector benchmark.

What could change the story

• Colocation revenue in the quarter to June 2026 remained dependent on CoreWeave, so the AMD agreements do not yet eliminate revenue concentration, while larger data center operators and hyperscalers compete for additional customers.
• Utility collateral requirements, equipment lead times and skilled labor shortages could increase upfront costs or delay the conversion of contracted capacity into billing.
• Negative equity and free cash flow of -$958 million over the last twelve months leave the buildout dependent on financing rather than internally generated cash after capital spending.
• The net loss in the quarter to June 2026 was primarily driven by warrant fair value changes, but the -127.4% operating margin over the last twelve months shows that losses also extend beyond that accounting effect.
• The $600 million of credit facilities announced in August 2026 comprise a $100 million revolver and a $500 million letter of credit facility, not an equivalent amount of freely spendable cash, and are secured by substantially all assets of the company and its guarantors.

What to watch next

• The release for the quarter to June 2026 contained no financial guidance, making growth in billed capacity from 437 MW and the resulting colocation revenue central measures at the next releases.
• AMD deployments are scheduled to begin in 2027, while the August 2026 Muskogee update called for delivery of the next approximately 82 MW beginning in the second half of 2027.
• Construction spending and free cash flow will show whether rising colocation revenue is narrowing the funding gap.
• The next financing updates should clarify whether the August 2026 credit facilities release approximately $300 million of restricted cash as management expected.

Sources

• Core Scientific's earnings release, filed with the SEC
• Its latest 10-Q or 10-K, for the risk factors
• The CORZ stock report, for every figure and check