Core Scientific Q2 revenue doubles to $164.2M as AI colocation surges
In brief
- Q2 revenue doubled to $164.2M from $78.6M year-over-year.
- AI and HPC colocation revenue surged to $136.7M from $10.6M in Q2 2023.
- Core Scientific reported $1.15B net loss from non-cash warrant accounting charge.
- AMD partnership supports 2.5 GW leasable capacity and $14B revenue potential.
- Total leased capacity reaches 1.1 GW with $24B in potential revenue.
Revenue and Profitability Surge
Colocation revenue accounted for $136.7 million of total Q2 revenue, compared with just $10.6 million in the same period last year. Gross profit increased to $70 million from $5 million, signaling strong operational leverage as the company scaled its data center footprint.
The earnings report masked a significant accounting headwind. 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. Despite the paper loss, Core Scientific shares fell more than 4% following the earnings release, reflecting investor scrutiny of the warrant liability.
AMD Partnership and Capacity Expansion
Core Scientific's growth trajectory accelerated with a partnership announcement with Advanced Micro Devices (AMD). The agreement could ultimately support up to 2.5 gigawatts of leasable data center capacity, with initial 15-year agreements covering 530 megawatts across several US sites beginning in 2027.
The broader AMD partnership has the potential to generate more than $14 billion in contracted base revenue. This positions Core Scientific as a major player in the AI infrastructure buildout. Its total leased customer power capacity now stands at roughly 1.1 GW, representing more than $24 billion in potential contracted revenue.
Pivot Beyond Mining
The company's transformation is striking. Core Scientific maintains a comparatively modest Bitcoin treasury of fewer than 1,000 BTC, underscoring its shift away from mining operations. The results underscore how several Bitcoin mining companies have diversified into AI and HPC infrastructure, seeking more stable, long-term revenue streams as demand for data center capacity surges.
