Core Scientific, Inc. Announces Landmark Partnership with AMD and Major Infrastructure Expansion
Key Highlights
- Core Scientific, Inc. (Nasdaq: CORZ) entered into a transformative partnership with Advanced Micro Devices, Inc. (AMD), including a massive lease agreement covering 377 MW of critical IT capacity.
- Additional lease agreements with Neocloud for 152 MW at other sites expands Core Scientific’s footprint, with total new contracted power reaching 529 MW.
- AMD receives a reservation right for up to 1,925 MW of additional capacity through December 2028, positioning Core Scientific for further growth.
- Core Scientific issued AMD a warrant for up to 30 million shares at \$23.47/share, immediately exercisable subject to vesting and expiring July 27, 2031.
- As a result of the leases, approximately 6.5 million warrant shares vested and became exercisable.
- The company is repositioning its remaining bitcoin mining facilities to support high-density colocation (HDC) for AI and compute-intensive workloads.
- Core Scientific’s contracted revenue now exceeds \$24 billion across its ~1.1 GW footprint.
- The company’s fully diluted market cap is approximately \$10.5 billion, with a pro forma share count of ~508 million.
Detailed Analysis
Core Scientific, Inc., a leading provider of digital infrastructure for AI and high-density compute workloads, has announced a major strategic partnership with AMD. The deal includes lease agreements for 377 MW of critical IT capacity at Core Scientific’s Pecos, TX; Muskogee, OK; and Hunt County, TX sites. Additionally, Neocloud has entered into lease agreements for 152 MW at Auburn, AL and Dalton Phase 3, GA locations. Each lease runs for 15 years with three 5-year renewal options, solidifying long-term contracted revenue and capacity.
A significant component of the AMD agreement is the reservation of up to 1,925 MW of additional capacity, granting AMD the right to lease more power through December 28, 2028. This not only secures Core Scientific’s position as a preferred infrastructure provider for AMD, but also positions the company for substantial future growth if AMD exercises these rights.
In connection with the leases, Core Scientific issued AMD a warrant to purchase up to 30 million shares of common stock at an exercise price of \$23.47 per share, based on the volume-weighted average price over the five trading days prior to the lease execution. The warrant is immediately exercisable (subject to vesting conditions) and expires on July 27, 2031. Vesting occurs at a rate of 12,222 shares per each one megawatt of critical IT load. The leases executed on July 27, 2026 resulted in approximately 6.5 million shares vesting and becoming exercisable for AMD.
These warrants were issued under Section 4(a)(2) of the Securities Act, exempting them from registration. The structure may have a significant impact on Core Scientific’s share count and potential dilution, and is a material event for shareholders and investors.
Core Scientific’s business model is evolving rapidly, with a shift away from bitcoin mining toward high-density colocation for AI and compute workloads. The company now operates in seven states, with contracted power exceeding 1.1 GW and contracted revenue topping \$24 billion. The company’s market capitalization, based on the fully diluted share count of 508 million shares, surpasses \$10.5 billion.
Potential Share Price Impact
- Expansion into AI and compute infrastructure: The partnership with AMD and Neocloud, combined with the reservation of nearly 2 GW of additional capacity, could significantly enhance Core Scientific’s growth trajectory, revenue visibility, and strategic positioning, making it highly attractive to institutional investors.
- Warrants issued to AMD: The immediate vesting and exercisability of a large number of shares may introduce dilution risk, but also signals strong institutional confidence in Core Scientific’s infrastructure platform.
- Long-term contracts: The 15-year lease terms with renewal options provide revenue stability and potentially justify a premium valuation for the company.
- Large market cap and share count: Investors should closely monitor the impact of warrants and convertible notes on the fully diluted share count and potential earnings per share.
Other Notable Information
- Press release and investor presentation issued on July 28, 2026, are available for further details.
- Management and legal sign-off by Todd M. DuChene, Chief Legal Officer and Chief Administrative Officer.
- The company holds liens on data center infrastructure assets (excluding GPUs), further strengthening its financial position.
- Estimated average build cost ranges from \$11 million – \$12 million per MW, excluding tenant fit out costs (\$1 million – \$2 million per MW).
- Anticipated profit margins on the new contract are 80% – 85%.
Disclaimer
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. All forward-looking statements are subject to risks and uncertainties, including those described in Core Scientific’s SEC filings. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.
