Core Scientific Q4 Earnings Call Highlights

Key Points

• Core Scientific has energized about 350 MW of capacity with nearly 200 MW currently billing and is executing a 590 MW CoreWeave buildout that management expects to fulfill by early 2027.
• The company reports a deep customer pipeline—500 MW under exclusivity with an investment‑grade counterparty, 700 MW of unannounced leasable opportunities, and roughly 1.5 GW of total customer‑leasable capacity—as it shifts from Bitcoin mining toward colocation.
• Core Scientific ended the year with about $530 million in liquidity, sold ~1,900 BTC for ~$175 million (now holding under 1,000 BTC), has financing capacity to raise up to $4 billion against contracted CoreWeave capacity, and disclosed a 10‑K restatement that management says did not affect revenue, adjusted EBITDA, or net cash flow.

Core Scientific NASDAQ: CORZ executives used the company’s fiscal fourth-quarter 2025 earnings call to emphasize progress in building out large-scale AI and high-performance computing (HPC) infrastructure while continuing to rely on Bitcoin mining as the primary revenue source during the transition.

Quarry and CoreWeave buildout: energized capacity rising, billing ramp underway

Chief Executive Officer Adam Sullivan said the company has made “incredible progress” on its Quarry build-out, describing execution as the key metric for investors. As of the week of the call, Core Scientific had energized approximately 350 megawatts of capacity, with close to 200 megawatts currently billing. Management noted that “energized” means power has been delivered and is generally within 90 days of billing, with timing dependent on site and customer requirements. Sullivan said the company will report megawatts when they start billing going forward.

Chief Operating Officer Matt Brown detailed construction progress tied to Core Scientific’s 590 MW commitment to CoreWeave, describing five “AI factories” started over the last 14 months across two brownfield expansions (Denton, Texas, and Marble, North Carolina) and three greenfield campuses (Muskogee, Oklahoma, and Dalton phases one and two in Georgia). Brown characterized the effort as a major expansion, citing the scale of construction activity and investment described on the call.

Site-level updates included:

• Denton, Texas (262 MW campus): By the end of Q4, the campus delivered 67 billable MW across three buildings, with roughly half energized. Brown said Denton North is now fully operational and represents 90 billable MW. Denton South’s first 41 MW data hall has commenced building, and the next 41 MW data hall is beginning energization. Remaining South Campus buildings were described as on track for Q2 energization, with full campus completion by mid-year.
• Marble, North Carolina (65 MW): Achieved full site energization in 2025. Two of three data halls were delivered by the end of Q4, representing 36 billable MW, with the final hall in commissioning and expected to be delivered in the second quarter.
• Muskogee, Oklahoma phase one (70 MW): Vertical construction complete, fully energized, and in commissioning; full delivery remains on track for the second quarter.
• Dalton, Georgia phase one (30 MW): Vertical construction complete and fully energized; commissioning underway with full delivery expected in the second quarter.
• Dalton, Georgia phase two (145 MW): Vertical construction underway; full delivery targeted for early 2027.

In the Q&A, Brown said Core Scientific energized 213 MW by the end of calendar 2025, falling “just slightly short” of its 250 MW goal by one data hall, but added the company had since “made [its] way back ahead of schedule” with 350 MW energized and nearly 200 MW billing. He said the full CoreWeave contract should be fulfilled and fully delivered “going into 2027 or the early part of 2027.”

Customer diversification: no new contract yet, but exclusivity discussions expanded

Sullivan opened prepared remarks by referencing four specific deliverables the company previously outlined for the call, including signing at least one new customer to diversify the base. He said Core Scientific did not sign a new customer contract by the call and added, “we are not satisfied with that,” while stressing that he views it as a timing issue rather than a demand issue.

Management said it has two sites under short exclusivity arrangements and expects these efforts to result in colocation leasing agreements “in the near future.” Sullivan said discussions include hyperscalers, “Neoclouds,” and large enterprises, but added that hyperscalers would not engage while the company was operating under a merger agreement; those conversations restarted after termination.

On tenant selection, Sullivan emphasized counterparty strength, particularly for Neocloud deals, saying Core Scientific is not willing to compromise on credit quality and that many arrangements require an investment-grade guarantee. He said negotiating these guarantees adds steps and coordination and is one reason fewer Neocloud deals have been announced recently across the industry.

During Q&A, Sullivan said the company has 500 MW under exclusivity arrangements with a large investment-grade counterparty and expects to advance toward signing. He also said the company’s presentation included 700 MW of unannounced leasable customer power opportunities, describing that bucket as a mix of potential incremental power at existing sites and new opportunities under exclusivity or due diligence.

Expansion plans: Dalton power growth, Pecos conversion, and Hunt County acquisition

On power expansion at an existing site, Sullivan said the company delivered an expansion in Dalton, Georgia. He said Dalton will expand to 450 MW of total gross power capacity, including 120 MW of uncommitted leasable customer capacity, and that Core Scientific secured an additional 175 acres of land to support the expansion.

Sullivan also said Core Scientific increased leasable customer capacity in Pecos, Texas, to 200 MW and is moving forward with converting Pecos from Bitcoin mining to colocation. He described Pecos as being in a “Goldilocks zone” for customer signing with a general contractor secured, long-lead equipment locked in, and conversion work underway, targeting readiness for service within 12 months. Sullivan reiterated the company’s longer-term intent that every megawatt in its portfolio be dedicated to colocation within the next three years.

For new land and power, management highlighted an agreement to acquire a new site in Hunt County, Texas. Sullivan said the site spans approximately 265 acres and is expected to support roughly 430 MW of gross power capacity, or 285 MW of customer leasable capacity. The company expects the transaction to close by the end of Q1. Power is expected to begin coming online in 2027 and ramp through 2029, with the ERCOT energization schedule approved in 2024.

In Q&A, Sullivan said the company was told the Hunt project would not be re-studied by ERCOT and that it is not impacted by Senate Bill 6 or recent ERCOT changes, which he said supports confidence in the site. Management also said a substation still needs to be built and that work on pre-construction activities would need to begin soon to align with the late-2027 energization target.

Pipeline size and “Forward Observer” development strategy

Sullivan said the company’s pipeline is approximately 1.5 GW of customer leasable capacity, which he described as non-speculative and limited to opportunities with a clear path to development. While power is often viewed as the bottleneck, he said Core Scientific believes other constraints can be more limiting in practice, including long-lead equipment and the availability of experienced general contractors and subcontractors.

Brown outlined a development and go-to-market approach dubbed “Operation Forward Observer,” which he described as advancing multiple sites through early stages to the first commissioned data hall while also securing long-lead equipment, in order to provide customers greater certainty on readiness-for-service timelines and expansion.

Brown listed Forward Observer sites as:

• Hunt Campus: 285 leasable MW planned near Dallas-Fort Worth, with initial delivery planned in the second half of 2027.
• Pecos campus: planned 200 leasable MW, with phase one designed to deliver 185 MW and initial delivery expected to begin in early 2027.
• Dalton phase three: planned to deliver 120 MW of leasable capacity, with initial delivery targeted for the second half of 2027.
• Auburn, Alabama: first phase of a 30 MW leasable data center under construction, with the first 10 MW expected in the second half of 2026.

Executives described Auburn as a smaller, multi-tenant, tier-three-style facility with dense connectivity intended to serve enterprise AI customers, and said it may be suitable for inference workloads as well as other enterprise segments.

Liquidity, financing options, and a 10-K restatement

Chief Financial Officer Jim Nygaard said 2025 was a “transitional year,” with most revenue still coming from Bitcoin mining while the company focused on scaling colocation. He said the company expects an inflection point in the coming months as it begins billing additional megawatts, which he said should bring colocation revenue to a level that covers operating costs and drives margin expansion.

Nygaard said Core Scientific ended the year with total liquidity of approximately $530 million. He also said the company sold just over 1,900 Bitcoin in January for approximately $175 million at prices “materially higher” than current market levels, and that it now holds under 1,000 Bitcoin.

On financing, Nygaard said the company has multiple capital formation options, including raising up to $4 billion against contracted capacity with CoreWeave at “stabilization.” In response to a question, he said a substantial portion of that capital could be available under the existing asset base already under construction, and he expects scaling to be fast given the company’s progress on billing, with most of the ramp expected before the end of the year. He also said the company expects to use project-based financing structures at pipeline sites, with 60% to 85% advance rates depending on customer credit quality and site characteristics.

Nygaard also addressed a historical restatement disclosed in the company’s 10-K filed that day. He said after switching auditors to KPMG from Marcum, the company identified an error in historical accounting back to 2024 involving certain property, plant, and equipment demolished during legacy mining site conversions to colocation. Nygaard said amended statements were filed and that there was no impact to revenue, adjusted EBITDA, or net cash flow, though a material weakness will be noted in filings for the next four quarters.

In closing remarks, management said 2026 priorities include diversifying the customer base and executing on the CoreWeave contract, while continuing to transition power and sites away from Bitcoin mining and toward colocation over time.

About Core Scientific NASDAQ: CORZ

Core Scientific, Inc NASDAQ: CORZ is a leading provider of large-scale blockchain infrastructure and digital asset mining services. The company develops, owns and operates high-performance data centers optimized for the mining of Bitcoin and other proof-of-work cryptocurrencies. In addition to its core mining operations, Core Scientific offers colocation, hosting and managed services designed to support institutional clients and enterprise users in deploying and scaling blockchain nodes and computing hardware.

Core Scientific's service portfolio includes hardware procurement, deployment and maintenance, real-time monitoring, power management and network connectivity.

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