• In early May 2026, Core Scientific, Inc. reported first-quarter revenue of US$115.24 million versus US$79.53 million a year earlier, alongside a net loss of US$347.19 million driven largely by non-cash impairments as it continued shifting away from Bitcoin self-mining toward AI-focused colocation services.
• At the same time, the company advanced an ambitious build-out of its Muskogee, Oklahoma campus toward roughly 1.5 gigawatts of gross power, underpinned by a US$3.30 billion senior secured notes offering and the planned Polaris DS acquisition to expand its AI and high-performance computing data center footprint.
• Now we’ll examine how this Muskogee campus expansion, backed by very large project bond financing, reshapes Core Scientific’s investment narrative.

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Core Scientific Investment Narrative Recap

To own Core Scientific today, you have to believe its pivot from Bitcoin mining to AI and high-performance computing hosting will translate large contracted power capacity into profitable, recurring colocation revenue, while it manages heavy upfront investment and past balance sheet strain. The latest results, with higher revenue but a large, impairment-driven loss, sharpen the near term focus on whether new AI/HPC capacity is filled quickly enough; the key risk remains execution and utilization of that build-out rather than this single quarter’s loss.

The Muskogee expansion plan, targeting roughly 1.5 gigawatts of gross power and supported by the US$3.30 billion senior secured notes, sits at the center of that execution question, because it links Core Scientific’s capital structure directly to scaling AI-focused colocation. That same financing both amplifies the upside if Muskogee and similar sites are leased efficiently and heightens the risk of underused assets and balance sheet pressure if demand or project timelines slip.

Yet behind this growth story, investors should also be aware that...

Core Scientific’s narrative projects $1.4 billion revenue and $439.9 million earnings by 2029. This requires 62.4% yearly revenue growth and a $720.6 million earnings increase from -$280.7 million today.

Uncover how Core Scientific's forecasts yield a $26.40 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were expecting revenue to reach about US$2.1 billion and earnings near US$988 million by 2029, but when you compare that optimism with the risk that aggressive AI capacity build outs like Muskogee could lead to overcapacity if demand cools or shifts, it highlights just how far apart opinions can be and why this new expansion news may ultimately push those narratives to adjust in very different directions.

Explore 3 other fair value estimates on Core Scientific - why the stock might be worth just $26.40!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• 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.