Core Scientific, a former bankrupt Bitcoin miner, has reported approximately $24 billion in potential revenue under long-term contracts as it transforms into a US artificial intelligence infrastructure provider. The company's second-quarter results showed that high-density colocation has become its largest business, producing $136.7 million of its $164.2 million in quarterly revenue. Digital asset self-mining contributed $21.5 million.
AI Infrastructure Expansion
Core Scientific's transformation is supported by signed contracts with CoreWeave and companies deploying AMD technology. The company has approximately 1.1 gigawatts of leased customer power capacity and has announced a wider infrastructure partnership with AMD, starting with approximately 530 megawatts across five US sites under 15-year agreements.
The company's turnaround is significant, given its history. Core Scientific filed for Chapter 11 protection in December 2022 after Bitcoin prices fell, electricity costs rose, and financing conditions tightened. However, the company has since reduced its debt by approximately $400 million through conversions of equipment financing and convertible-note claims into equity.
Challenges Ahead
While Core Scientific's potential revenue is substantial, the company still faces challenges, including constructing facilities, delivering capacity on schedule, and keeping customers operating under those agreements. The transition also requires heavy spending and considerably more debt. The company's latest filing shows that it had about $4 million in cash when it filed for bankruptcy, but it has since retained 724 megawatts of operating capacity across five US states, which has become valuable as AI companies compete for sites with secured power, fiber connections, and space for high-density computing equipment.
