A designer and operator of large-scale data centers, Core Scientific runs high-density facilities that host bitcoin mining rigs and, increasingly, the powerful computers behind artificial intelligence. Founded in 2017 in Seattle as Atlantic Crypto, the company renamed itself Core Scientific and grew into one of the largest publicly traded bitcoin miners in the U.S. It filed for bankruptcy in late 2022 and emerged in early 2024, then struck a major deal with cloud firm CoreWeave to convert much of its power capacity to AI computing.
Colocation revenue more than doubled to $136.6M, reaching 83% of total revenue, while a $1.08B non-cash warrant charge drove a $1.16B net loss.
Colocation became the dominant business this quarter. rose 109% to $164.2 million as colocation revenue reached $136.6 million, but a $1.08 billion from the change in fair value of warrant liabilities drove a net loss of $1.16 billion. The company is now an AI infrastructure provider that also mines bitcoin, but it carries $4.4 billion in debt and still depends on a single customer.
Key takeaways
Colocation rose to $136.6 million, up from $10.6 million a year ago, as billable customer power capacity reached 395 MW, making it 83% of total revenue for the quarter.
A $1.08 billion from the change in , triggered by a rise in the company's stock price, was the primary driver of the $1.16 billion net loss.
Digital asset self-mining fell 66% to $21.5 million, as the number of bitcoin mined dropped 49% and the average realized bitcoin price declined 23%.
Section summaries
Management's Discussion and Analysis
Colocation revenue surged to 77% of total revenue as billable capacity hit 395 MW, while self-mining fell sharply and a $1.5B net loss was driven by non-cash warrant charges.
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Total rose to $279.4M for H1 2026 from $158.2M in H1 2025, driven by colocation revenue jumping to $214.2M as billable customer power capacity reached 395 MW.
expanded to 42.7% from 6.4% a year ago, driven by the shift in mix toward higher-margin colocation services.
Cash and equivalents rose to $1.77 billion at quarter-end, reflecting the proceeds from a $3.3 billion senior secured notes offering completed in May 2026, which was used to repay a term loan and fund .
A new 15-year colocation agreement with AMD for 530 MW was announced in July 2026, addressing the single-customer concentration risk that the company has flagged across multiple filings.
What changed
The single-customer concentration risk flagged in every prior filing began to ease: a new 15-year agreement with AMD for 530 MW was announced in July 2026, though CoreWeave still accounted for 77% of total in the first half of the year.
The $266.5 million mining asset taken in Q1 2026 did not recur this quarter, and the operating loss narrowed to $78.5 million from $310.4 million in the prior quarter.
The in internal control over financial reporting, flagged across multiple prior periods, remains unresolved as of this filing.
The company's debt load rose to $4.4 billion in aggregate principal following the $3.3 billion senior secured notes offering, up from $2.09 billion at the end of Q1 2026, increasing the risk that earlier filings had identified.
What to watch
Whether the AMD agreement progresses from announcement to signed contract and billable capacity, reducing the single-customer dependency that has been the company's most persistent risk.
The fair value of warrant and CVR liabilities at the next reporting date, as these instruments caused a $1.08 billion this quarter and will continue to swing with the stock price.
The pace of colocation growth against the $4.4 billion debt load, to see whether can cover interest on the 7.75% Senior Secured Notes and the 3.00% Convertible Notes.
Progress on remediating the in internal control over financial reporting, which has caused restatements across multiple periods and remains unresolved.
Digital asset self-mining fell to $51.6M in H1 2026 from $129.6M in H1 2025 due to a 49% drop in bitcoin mined and a 23% decline in average bitcoin price.
Net loss widened to $1.5B for H1 2026, primarily from a $1.08B non-cash charge for the change in and a $266.5M on mining assets.
improved to $50.0M in H1 2026 from $26.7M in H1 2025, reflecting the ramp in higher-margin colocation services.
were $954.2M for H1 2026, with $180.9M funded by CoreWeave; liquidity stood at $1.8B in cash and digital assets after a $3.3B senior secured notes offering.
Customer concentration risk is high as CoreWeave accounted for 77% of total , though a new 15-year agreement with AMD for 530 MW was announced in July 2026.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risks are bitcoin price volatility and electricity costs; interest rate risk is minimal after repaying variable-rate debt.
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The company held 848 bitcoin with a $50 million as of June 30, 2026, all from its mining operations.
Bitcoin price changes affect both mining and the of held bitcoin, with prices ranging from $58,097 to $97,877 during the six-month period.
Variable-rate debt was eliminated when the Term Loan Facility was fully repaid and terminated on May 6, 2026.
Remaining debt consists of fixed-rate Senior Secured Notes at 7.75%, 2029 Convertible Notes at 3.00%, and 2031 Convertible Notes with no stated interest.
The company states it has no material interest rate fluctuation risk and does not use interest rate hedging instruments.
Electricity is the primary commodity price exposure, partially mitigated by power in colocation customer agreements.
We are involved in lawsuits, claims and other legal matters that arise in the ordinary course of business. The outcome of these matters cannot be predicted with certainty, and the resolution of one or more of these matters could materially adversely affect our business, financia…
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We are involved in lawsuits, claims and other legal matters that arise in the ordinary course of business. The outcome of these matters cannot be predicted with certainty, and the resolution of one or more of these matters could materially adversely affect our business, financial position, results of operations or cash flows; to the extent the ultimate resolution of any matter differs from amounts accrued, we could incur charges that could be significant. Information regarding our material pending legal proceedings is included in Note 10 — Commitments and Contingencies, to our consolidated financial statements in Item 1 of Part I of this Quarterly Report on Form 10-Q.
No material changes to risk factors except for new or updated risks on customer concentration and high leverage.
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HPC colocation depends entirely on a single customer, and failure to attract new high-density colocation clients could constrain growth and heighten counterparty risk.
The company competes for colocation customers against larger data center , , and purpose-built developers with greater resources and track records.
As of June 30, 2026, the company carried approximately $4.4 billion in aggregate principal debt, which may limit cash flow, operational flexibility, and access to additional financing.
High increases vulnerability to adverse economic conditions and could place the company at a competitive disadvantage versus less leveraged peers.
Change-of-control provisions in the Convertible Notes and Secured Notes may deter or raise the cost of a takeover by requiring cash repurchases or temporarily increased conversion rates.