Data Center
Core Scientific: Multi-GW Pipeline, New Hyperscaler Interest but Still Tied to CoreWeave
Core Scientific represents one of the stronger Miners as they are already earnings revenue on 243 megawatts with another 200 megawatts expected to be earning revenue in the coming months. This helps transition Core Scientific away from being pure speculation as the company is beginning to execute. With that said, Core Scientific must continue to execute to reach its full potential, and this is particularly important because of the company’s debt structure. As a reminder, Core Scientific is pivoting from being a Bitcoin miner to offering multisite infrastructure buildouts as a colocation data center provider. Therefore, at the moment, Core Scientific offers a challenging fundamental profile, with operating margins and cash flows still in the red. However, management stated the 243MW currently being billed will result in $350 million annualized colocation GAAP revenue, and raised their expected cash gross profit margin up 500 bps to 82.5% at the midpoint. The takeaway is that Core Scientific can offer enough profitability and visibility to support more growth.
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