Core Scientific Q2 Revenue Jumps as AI Business Grows
Key Takeaways
- •Second-quarter revenue increased to $164.2 million from $78.6 million a year earlier.
- •Colocation revenue rose to $136.7 million and became the main source of Core Scientific’s sales.
- •The company recorded a net loss of $1.15 billion, largely because of a non-cash charge tied to outstanding warrants.
- •Core Scientific announced an AMD partnership that may eventually cover up to 2.5 gigawatts of leasable data center capacity.
- •The AMD deal is initially based on 15-year agreements for 530 megawatts starting in 2027 and could produce more than $14 billion in contracted base revenue.
Digital infrastructure company Core Scientific more than doubled its second-quarter revenue as rapid growth in its artificial intelligence and high-performance computing (HPC) colocation business continued to reshape its earnings profile following its pivot beyond Bitcoin mining.
The company reported Tuesday that Q2 revenue increased to $164.2 million, up from $78.6 million a year earlier. Colocation revenue accounted for $136.7 million of the total, compared with just $10.6 million in the same period last year, while gross profit increased to $70 million from $5 million.
Despite the revenue surge, Core Scientific reported a net loss of $1.15 billion, driven primarily by a non-cash accounting charge related to the rising value of outstanding warrants as its share price increased.
The results highlight how several Bitcoin mining companies have diversified into AI and HPC infrastructure in search of more stable, long-term revenue streams as demand for data center capacity expands, with leased power and colocation contracts becoming a more important part of their business mix.
Once one of the world’s largest publicly traded Bitcoin miners, Core Scientific now generates most of its revenue from colocation services while maintaining a comparatively modest Bitcoin treasury of fewer than 1,000 BTC, according to industry data.
Core Scientific shares fell more than 4% after the earnings release, trimming year-to-date gains. Core Scientific (CORZ) stock is up 36% this year, according to Yahoo Finance.
Related: CoreWeave shows how crypto-era infrastructure quietly became AI’s backbone
AMD partnership expands AI footprint
Alongside its earnings report, Core Scientific announced a partnership with Advanced Micro Devices (AMD), the semiconductor company that designs CPUs and AI-focused graphics processors competing with Intel (INTC) and Nvidia (NVDA).
The agreement could ultimately support up to 2.5 gigawatts of leasable data center capacity. It is initially anchored by 15-year agreements covering 530 megawatts across several US sites beginning in 2027, with the potential to expand over time.
Core Scientific said the broader partnership has the potential to generate more than $14 billion in contracted base revenue, while its total leased customer power capacity now stands at roughly 1.1 GW, representing more than $24 billion in potential contracted revenue.
Earlier this month, IREN disclosed $2.8 billion in cloud contracts with AI developers, while Hut 8 unveiled a $9.8 billion lease agreement with an unnamed customer for capacity at its AI data campus.
Related: Crypto market breakout could accelerate as AI trade cools, analyst says