Core Scientific Q2 Colocation Revenue Surges as Citadel Expands Stake Amid AMD Pivot

• Core Scientific reported Q2 2026 colocation revenue of $137 million, with billable capacity rising to 437 megawatts by mid-July.
• Citadel disclosed a 6.5% stake in Core Scientific, acquiring shares as distressed fund Situational Awareness liquidated its position.
• The company secured 15-year agreements with AMD for 530 megawatts of capacity, projecting over $14 billion in base contracted revenue.
• Analysts maintain a Moderate Buy consensus with an average price target of $32.18, though shares fell 3.13% following the earnings report.

Core Scientific is scheduled to release its Q2 2026 earnings before market open on Friday, August 14, following a disappointing first quarter. Consensus estimates project a loss of $0.02 per share on revenue of approximately $144.9 million. This follows a significant Q1 miss where EPS fell to ($3.32) against estimates of ($0.06), though revenue beat expectations at $164.20 million. The company operates as a large-scale blockchain infrastructure provider, developing data centers optimized for Bitcoin mining and offering colocation services to enterprise clients.

The transition to artificial intelligence infrastructure is accelerating rapidly. Core Scientific reported Q2 colocation revenue of $137 million, with billable capacity reaching 437 megawatts by mid-July. This represents an increase of nearly 200 megawatts from the first quarter. The company signed a significant deal with AMD covering 530 megawatts across five sites. This agreement is projected to generate over $14 billion in base revenue over 15 years with 2.5% annual escalators.

Despite these strong top-line results, the stock fell 3.13% to $20.09. Investors are cautious due to the $6 billion capital requirement needed to execute the transition. The build-out timeline extends through 2028, with the first AMD megawatts expected in the first half of 2027. The company targets delivering 265 megawatts of capacity in 2027 and the remaining 265 megawatts in 2028. Concurrently, Core Scientific is reducing its Bitcoin mining footprint by 30% from Q1 levels while pursuing an additional 2 gigawatts of site pipeline.

Institutional ownership has shifted significantly as major funds adjust their positions. Citadel-controlled entities disclosed a combined beneficial position of 20.85 million shares, representing 6.5% of the company. This increase occurred shortly after the troubled AI hedge fund Situational Awareness sold over 11.5 million shares through block trades. The sales generated approximately $225.6 million as the fund sought to reduce leverage following steep losses. While filings do not confirm Citadel purchased the shares directly from Situational, the timing suggests Citadel acquired a large portion of the fund's public-equity portfolio.

Other institutional investors are also adjusting their holdings. Vanguard Group increased its holdings by 18.7% to 33.96 million shares. Clearline Capital raised its position by 274.2% to 4.69 million shares. California State Teachers Retirement System increased its stake by 22.1% in the first quarter. Conversely, insider selling was noted, with executive Todd M. Duchene selling 10,000 shares for $222,300 in early August.

Analyst sentiment has shifted moderately positive despite the recent earnings miss. Canaccord Genuity upgraded the stock to 'Buy' with a $36 price target. Keefe, Bruyette & Woods raised their rating from 'Market Perform' to 'Outperform' with a $28 target. Lucid Capital Markets upgraded Core Scientific to a 'strong-buy' rating with a price target of $38.00. However, Weiss Ratings maintained a 'sell (d-)' rating. The overall analyst consensus is a 'Moderate Buy' with an average price target of $32.18.

For the full fiscal year, analysts expect a loss of $1.00 per share, with breakeven projected for the following year. The company aims to deliver 265 megawatts in 2027 and the remaining capacity in 2028, targeting 600 megawatts of annual capacity by the end of the decade. The strategic pivot to AI data centers continues to drive long-term growth prospects, though execution risks remain high due to the substantial capital requirements.

Why Is Citadel Increasing Its Core Scientific Position?

Citadel Securities Group LP reported 15.65 million shares, while Citadel Advisors LLC reported 5.2 million shares as of August 5. This marks a significant increase from March 31, when Griffin beneficially owned 12.79 million shares. The transaction aligns with reports that Citadel agreed to acquire a large portion of Situational Awareness’s roughly $16 billion public-equity book. Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, had grown to over $20 billion in assets under management by making concentrated bets on AI beneficiaries.

Core Scientific fits this infrastructure thesis, having transitioned from cryptocurrency mining to hosting high-density AI workloads. In July, the company announced 15-year agreements with Advanced Micro Devices Inc. to secure 530 megawatts of capacity. These agreements represent more than $14 billion in potential base contracted revenue, reinforcing Core Scientific's pivot to AI data centers. The transfer of assets from a struggling concentrated bettor to a major established investor highlights institutional confidence in the company's long-term strategy.

How Does Core Scientific's AMD Deal Impact Revenue Projections?

The AMD deal represents a cornerstone of Core Scientific's transformation into an AI infrastructure provider. The 530-megawatt agreement covers five sites and includes an option to expand to 2.5 gigawatts. These initial agreements represent over $14 billion in potential base contracted revenue. The company aims to deliver 265 megawatts in 2027 and the remaining capacity in 2028, targeting 600 megawatts of annual capacity by the end of the decade.

Despite the strong revenue potential, the multi-year timeline required to complete the build-out through 2028 poses execution risks. The first AMD megawatts are expected in the first half of 2027, with the company targeting 265 megawatts of delivery in 2027. The remaining 265 megawatts are scheduled for 2028. Investors are weighing these long-term gains against the substantial $6 billion capital requirements needed to execute the transition. The company is simultaneously reducing its Bitcoin mining footprint by 30% from Q1 levels while pursuing an additional 2 gigawatts of site pipeline.