Core Scientific Stock Surges 75.8% in First Half of 2026

Core Scientific's dramatic 75.8% stock gain in the first half of 2026 marks the continuation of a much longer rally—the company is up 2,000% over the last three years—but the rise reflects a specific inflection in its business. The company was originally a cryptocurrency miner, an industry that consumes enormous quantities of electricity. As Bitcoin and other cryptocurrencies lost favor and prices fell, that business model collapsed. Rather than exit the market, Core Scientific pivoted to serving a different sector with similar power demands: artificial intelligence and the data centers that support it.

Unlike competitors such as CoreWeave, which builds and operates the computing infrastructure (the racks that run AI models), Core Scientific operates as a subcontractor that secures electric power and provides what the article calls the power "shell" for these facilities. This division of labor creates dependencies: CoreWeave and other data center operators need Core Scientific's power supply to build their infrastructure. That interdependence was so strong that CoreWeave attempted to acquire Core Scientific last year for $8.7 billion（約1.4兆円）, but the deal fell apart. Despite the merger's collapse, Core Scientific has strengthened its position by signing long-term power contracts—a model that reduces revenue volatility and demonstrates durable demand.

The company's financial position as of last quarter bears out the momentum. Revenue reached $115 million（約180億円）, primarily from colocation data center services. More significantly, Core Scientific raised $3.3 billion（約5300億円） in bonds and reported a power capacity pipeline of up to 4.5 gigawatts, indicating that it has locked in commitments to expand its infrastructure substantially. If the AI data center buildout continues at its current pace, the company is positioned to deploy that capacity and grow revenues accordingly.

However, the valuation tells a cautionary story. The company trades at a $7 billion（約1.1兆円） market cap while running negative free cash flow: over the last twelve months it has generated only $355 million（約570億円） in revenue but burned $471 million（約750億円） in free cash flow as a result of the capital-intensive nature of building out power infrastructure. This negative cash flow, combined with uncertainty about future unit economics and the durability of AI demand, has led analysts cited in the article to recommend avoiding the stock going forward despite its spectacular near-term performance.

Core Scientific's stock surge reflects a fundamental shift in its business model away from cryptocurrency mining toward providing power infrastructure for AI data centers. The original business of mining Bitcoin required enormous electricity but became unprofitable as cryptocurrency prices declined. The emergence of AI as a major power consumer created a new market for Core Scientific's core competency—securing and delivering large-scale electrical capacity. The failed $8.7 billion（約1.4兆円） merger with CoreWeave, despite its disappointment, has not derailed the company's strategy; instead, Core Scientific is building its position through long-term power contracts that lock in revenue streams independent of any single buyer.

The metrics show momentum but also risk. Revenue of $115 million（約180億円） last quarter represents growth driven by colocation data center services, and the pipeline of 4.5 gigawatts signals substantial future demand. The $3.3 billion（約5300億円） in fresh bond financing gives the company capital to invest in expansion. However, the company's current $7 billion（約1.1兆円） valuation is being applied to a business that is still cash-flow negative (burning $471 million（約750億円） in free cash flow against $355 million（約570億円） in annual revenue), implying that investors are betting almost entirely on future growth and improved unit economics as the AI data center buildout accelerates.