• In the past week, Core Scientific has seen heavy trading in out-of-the-money put options, as investors responded to its recent earnings release and unusually high premiums on longer-dated contracts.
• This surge in put activity, which some traders use to express confidence while earning income from rich option premiums, hints at investors’ willingness to take on downside risk in exchange for potential upside participation.
• We’ll now examine how this unusual put option activity, signaling stronger investor confidence after earnings, may influence Core Scientific’s investment narrative.

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Core Scientific Investment Narrative Recap

To own Core Scientific, you need to believe its pivot from Bitcoin mining to high‑performance computing can eventually outweigh recent heavy losses and concentration in a single anchor customer. The spike in out‑of‑the‑money put trading after Q1 earnings highlights how traders are pricing near term volatility, but it does not materially change the core near term catalyst of building out AI‑focused data centers or the key risk around execution and profitability after recent impairments.

The most relevant recent announcement here is Core Scientific’s Q1 2026 report, which showed revenue of US$115.24 million alongside a US$347.19 million net loss, including a US$266.49 million impairment. When you set that against investors writing rich, longer‑dated puts, it frames the contrast between a balance sheet still absorbing restructuring costs and an options market that appears willing to underwrite additional downside in return for income if the HPC expansion plan works.

Yet while option activity looks constructive, investors should still be aware that revenue concentration in CoreWeave could...

Core Scientific's narrative projects $2.2 billion revenue and $516.2 million earnings by 2029.

Uncover how Core Scientific's forecasts yield a $32.05 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already modeling revenue near US$1.8 billion and earnings around US$1.5 billion by 2029, which is far more upbeat than the baseline and leans heavily on CoreWeave concentration as a positive. This recent surge in put selling could support that stronger view, but it may just as easily prompt you to reassess how much comfort you take from such aggressive forecasts versus more cautious scenarios.

Explore 3 other fair value estimates on Core Scientific - why the stock might be worth as much as 24% more than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Core Scientific research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Core Scientific research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Core Scientific's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.