Core Scientific's Leverage Questioned as $7 Billion Valuation Sparks Debate

Core Scientific's transformation from a struggling crypto mining company to a $7 billion AI infrastructure business has sparked debate over its financial leverage. The company's bankruptcy in December 2022 was initially seen as a failure, but it allowed Core Scientific to restructure and preserve its assets. By the time it emerged from Chapter 11 in January 2024, it had cut about $400 million in debt and retained approximately 724 MW of operational capacity.

The turning point came with the June 2024 agreement between Core Scientific and CoreWeave, a hosting contract that valued contracted megawatts, billable capacity, and delivery timelines over hash rate and Bitcoin holdings. The initial 200 MW deal was expanded to about 590 MW, carrying a potential cumulative value of around $10.2 billion over 12-year terms.

The AMD partnership in 2025 marked another significant development, with signed 15-year agreements covering approximately 529 MW generating more than $14 billion in base contract revenue. However, the company's accounting picture remains uneven, with high-density colocation generating a gross profit of around $80 million in the second quarter of 2026.