CORZ Shifts to AI Data Centers Amid Institutional Backing

• Core Scientific (CORZ) is pivoting from Bitcoin mining to AI-enabled data centers for diversified revenue streams.

• Major institutional investors have placed significant bets totaling over $120 million on CORZ's strategic shift.

• Core Scientific is executing a strategic shift from volatile Bitcoin mining toward AI infrastructure services. This transition leverages existing power resources to capture higher-margin opportunities in artificial intelligence. Institutional capital supports the pivot despite recent market turbulence. The company terminated its $9 billion merger in October 2025 to focus on organic growth.

Why Is Core Scientific Transitioning to AI Infrastructure?

Core Scientific aims to reduce crypto market exposure through AI data center partnerships. High-density computing solutions now generate $15 million quarterly revenue from colocation services. This diversifies income beyond Bitcoin's price swings toward more stable contracts. The same power infrastructure feeding miners now supports high-performance AI workloads.

Management targets 590MW of operational capacity by 2027. AI hosting typically delivers superior returns compared to traditional mining. Core Scientific's competitive power pricing positions it for infrastructure monetization.

How Are Institutional Investors Positioning on CORZ?

Valiant Capital Management holds a 116 million stake in CORZ as its largest position. The fund added 1.68 million shares during Q3 2025. Zurich-based PSquared Asset Management initiated a $7.28 million position that same quarter. Oaktree Capital and Kintayl also demonstrated confidence through investments.

These bets occurred before the merger termination. Investors tolerate volatility for potential nonlinear payoffs from CORZ's infrastructure. The concentrated positions reflect conviction in the company's strategic redirection.

What Growth Trajectory Does CORZ's AI Pivot Offer?

Analysts see 81.6% upside with a $28.27 median price target. Citizens JMP upgraded CORZ to Buy with a $30 target citing potential. Third-party hosting revenue growth demonstrates early execution success. The company focuses on landing deep-pocketed AI clients for sustained expansion.

Core Scientific's power-rich data centers provide optionality for future deals. Transition risks include retrofitting costs and reduced mining flexibility. The standalone path prioritizes high-margin colocation over merger-dependent growth.