CORZW — Core Scientific, Inc.

Core Scientific, Inc. Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue Generation: Core Scientific is currently billing for 243 megawatts of capacity, translating to over $350 million in annualized colocation GAAP revenue. The company expects to deliver more than 450 megawatts by the end of summer 2026 and 590 megawatts by early 2027.
• Capital Raise: The company successfully closed a $3.3 billion capital raise at a 7.75% interest rate, netting approximately $2.9 billion for future growth initiatives.
• Cost Management: SG&A expenses were reported at just over $30 million for Q1, with expectations for this to serve as a baseline moving forward.

2. Strategic Updates and Business Highlights

• Infrastructure Expansion: Core Scientific is developing one of the largest multisite AI infrastructure buildouts, with five operational sites and plans to expand capacity significantly at Pecos and Muskogee.
• Customer Engagement: The company is actively engaging with hyperscalers, chip makers, AI labs, and Neo Cloud providers, with a notable increase in customer conversations since the beginning of the year.
• Operational Efficiency: The company is transitioning from Bitcoin mining to high-density colocation, with construction already underway at several sites, including Pecos, which is being converted from mining to colocation.

3. Forward Guidance and Outlook

• Growth Projections: Core Scientific anticipates deploying approximately $2 billion in capital expenditures in 2026, focusing on site acquisitions and pre-seeding new billable capacity.
• Revenue Expectations: The company is confident in its ability to secure additional contracts and expects to see pricing trends firm up due to rising labor and equipment costs.
• Operational Readiness: The first data halls are expected to reach Ready for Service (RFS) within 12 to 14 months, with ongoing discussions with multiple hyperscalers indicating a strong demand for capacity.

4. Bad News, Challenges, or Points of Concern

• Bitcoin Mining Decline: The company plans to wind down its Bitcoin mining operations by the end of 2026, which may impact revenue from this segment.
• Exclusivity Issues: The expiration of exclusivity agreements with hyperscalers raises questions about the competitive landscape and the potential for delays in securing contracts.
• Labor Market Constraints: Labor availability remains a concern, impacting construction timelines and operational efficiency.

5. Notable Q&A Insights

• Exclusivity Dynamics: Management indicated that the expired exclusivity allowed them to re-engage with multiple hyperscalers, which could lead to new contracts.
• Customer Engagement: The company is seeing increased interest from various customer segments, with ongoing discussions expected to yield contracts sooner than previously anticipated.
• Behind-the-Meter Power Strategy: Core Scientific is exploring both ownership and partnership models for behind-the-meter power solutions, which could enhance operational flexibility and cost management.
• Competitive Positioning: The company believes its experience and ability to deliver on projects gives it a competitive edge in securing new contracts in a selective market.

Overall, Core Scientific is positioned for growth with strong demand for its infrastructure, although it faces challenges in transitioning away from Bitcoin mining and navigating labor market constraints.