Core Scientific revenue doubles as AI colocation leads
Core Scientific revenue doubles in the second quarter to $164.2 million as AI and HPC colocation becomes its largest business line. Colocation sales reached $136.7 million, while a non-cash warrant charge produced a $1.15 billion net loss. The former Bitcoin miner's AMD partnership underscores a broader industry pivot toward data-center demand.
Key Takeaways
- Q2 revenue rose to $164.2 million from $78.6 million a year earlier.
- Colocation revenue jumped to $136.7 million from $10.6 million, topping Bitcoin mining as the main sales driver.
- Gross profit climbed to $70 million from $5 million; net loss hit $1.15 billion on a non-cash warrant charge.
- An AMD partnership could support up to 2.5 GW of capacity and more than $14 billion in contracted base revenue.
- CORZ shares fell more than 4% after the release but remain up about 36% year to date.
Why did Core Scientific's Q2 revenue double?
Digital infrastructure firm Core Scientific reported Tuesday that second-quarter revenue increased to $164.2 million from $78.6 million a year earlier, according to Cointelegraph.
Colocation revenue accounted for $136.7 million of the total, compared with just $10.6 million in the same period last year. Gross profit increased to $70 million from $5 million as AI and high-performance computing demand reshaped the earnings mix.
Once among the world's largest publicly traded Bitcoin miners, the company now generates the bulk of its revenue from colocation while holding a comparatively modest Bitcoin treasury of fewer than 1,000 BTC, per industry data cited in the report.
What caused the $1.15 billion net loss?
Despite the top-line surge, Core Scientific posted a $1.15 billion net loss. The shortfall was driven primarily by a non-cash accounting charge tied to the rising value of outstanding warrants as the share price increased.
Investors still reacted cautiously. Shares fell more than 4% following the earnings release, trimming year-to-date gains even as CORZ remained up about 36% for the year.
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How big is the AMD AI colocation expansion?
Alongside earnings, Core Scientific announced a partnership with Advanced Micro Devices (AMD). 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 room to expand. Core Scientific said the broader partnership has the potential to generate more than $14 billion in contracted base revenue.
Total leased customer power capacity now stands at roughly 1.1 GW, representing more than $24 billion in potential contracted revenue. Peers are moving in the same direction: IREN recently disclosed $2.8 billion in cloud contracts with AI developers, while Hut 8 unveiled a $9.8 billion lease agreement for AI data campus capacity.