Executive Summary
- Core Scientific brought approximately 350 megawatts online, representing 64% growth compared to year-end figures, with roughly 200MW generating revenue
- The company’s 590MW CoreWeave partnership is progressing at five locations, totaling approximately $2 billion in capital investment
- Future development capacity reaches 1.5 gigawatts; new 265-acre Texas site acquired in Hunt County
- Company missed its publicly stated timeline for signing additional customers and revealed an accounting correction requiring restatement with material internal control weakness
- Board member Eric Weiss acquired 7,000 shares of CORZ on March 9 at $14.53 each, increasing his position to 252,262 shares
Core Scientific (CORZ) is aggressively executing its transformation from cryptocurrency mining to artificial intelligence hosting infrastructure — though a customer acquisition shortfall and financial reporting issues are creating headwinds.
The organization disclosed approximately 350 megawatts now energized, climbing from 213MW at the close of the previous year. This represents roughly 64% expansion. Approximately 200 of these megawatts have reached billing status, and executives indicated future reporting will emphasize billable capacity to more accurately reflect commercial traction.
The CoreWeave partnership remains the centerpiece narrative. This 590MW agreement now spans five operational AI infrastructure locations with approximately $2 billion in deployed infrastructure and over five million hours of construction labor completed. The Denton facility alone now features roughly 130 billable megawatts, nearly doubling its Q4 capacity.
Facilities at Marble, Muskogee Phase 1, and Dalton Phase 1 have achieved full energization or entered commissioning phases. Each location is advancing toward revenue-generating status.
The development funnel now totals approximately 1.5 gigawatts — exclusively projects with secured power agreements or defined pathways to procurement. This marks roughly 600MW of growth from the prior reporting period.
Facility Expansion and Strategic Additions
CORZ finalized an agreement for a 265-acre property in Hunt County, Texas, projected to deliver around 285 megawatts of leasable infrastructure once grid connections are established. The Dalton, Georgia operation is undergoing expansion to 450 megawatts gross capacity, while the Pecos, Texas location is transitioning from cryptocurrency mining to 200MW of colocation infrastructure within approximately twelve months.
Management also detailed its “Operation Forward Observer” framework — prioritizing initial data hall completion and securing long-lead-time equipment early to accelerate revenue timelines. An Auburn, Alabama site with 30MW planned capacity already has critical infrastructure components delivered, with the initial 10MW phase targeted for second half 2026 activation.
Cash position stands at approximately $530 million, following the January liquidation of roughly 1,900 Bitcoin generating about $175 million. Leadership indicated potential access to up to $4 billion in financing secured by stabilized CoreWeave-related assets if capital needs arise.
Customer Acquisition Gap and Financial Reporting Correction
Despite ongoing negotiations, Core Scientific did not finalize agreements with new customers by its self-imposed public deadline. While two facilities are under brief exclusivity arrangements, this shortfall represents a monitoring point for market participants. CORZ continues deriving the majority of revenue from Bitcoin mining operations during the AI infrastructure ramp-up period.
Additionally, the company announced an accounting restatement. External auditors identified demolition expenditures that were improperly capitalized rather than expensed. Management emphasized this correction doesn’t impact reported revenue, adjusted EBITDA, or net cash generation — however, CORZ will report a material weakness in internal controls for the coming four quarters.
Leadership also attributed slower engagement with hyperscale cloud providers to timing around the company’s merger proceedings. Neocloud and AI research lab prospects are increasingly requiring investment-grade backing from major financial partners, extending negotiation cycles.
Regarding insider activity, Director Eric Weiss purchased 7,000 CORZ shares on March 9, 2026 at $14.53 per share. His total position now stands at 252,262 shares. The company’s P/E ratio of 13.21 trades below both the sector median of 21.65 and its own historical median valuation.
