Data center buildings behind a high-voltage electrical substation

Core Scientific Signed a 15-Year AMD Deal. One Revenue Split Shows What Happens to Bitcoin Mining Next

By Isaac • July 28, 2026 10:01 am • Comments

Core Scientific spent years being valued as a Bitcoin miner.

Its latest quarter says that description is now badly out of date.

High-density colocation generated $136.7 million of the company’s $164.2 million in second-quarter revenue. That works out to roughly 83%.

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Digital-asset self-mining contributed $21.5 million. Mining services for outside customers added another $6 million.

Bitcoin remains part of the business. It has moved from the center of the income statement to the edge.

Then came AMD.

Core Scientific announced 15-year infrastructure agreements covering roughly 530 megawatts across five U.S. sites. The company places the potential base contracted revenue above $14 billion.

The initial capacity is only the anchor. AMD and Core Scientific say the partnership can grow to 2.5 gigawatts.

That would make the deal one of the clearest examples yet of a Bitcoin miner converting its most valuable asset—access to enormous amounts of power—into AI infrastructure.

The Core Scientific and AMD partnership announcement says more than 500 MW of U.S. capacity will begin supporting customer deployments in 2027.

The sites are expected to host systems built around AMD Instinct GPUs, EPYC processors and ROCm software. AMD also receives market-priced warrants to buy Core Scientific shares if specified commercial conditions are met.

The agreement is not an acquisition. The conditional warrants give AMD a financial interest in the company responsible for building and operating the capacity its customers will use.

Core Scientific also said most of its revenue now comes from high-density colocation and that remaining mining sites will be converted when circumstances allow. The partnership places a large future commitment behind a transition already visible in the company’s accounts.

One year ago, Core Scientific reported just $10.6 million of quarterly colocation revenue. In the latest quarter, that figure reached $136.7 million.

During the same period, self-mining revenue fell from $62.4 million to $21.5 million.

The company added an AI business that overtook mining in barely a year. The two operations traded places.

The second-quarter results show average billable customer capacity rising from 225 MW in the first quarter to 395 MW in the second.

By mid-July, 437 MW was billing. Core Scientific said that represented approximately $635 million in average annualized colocation revenue under generally accepted accounting principles, up sharply from the capacity running at the start of the year.

Total leased customer power reached about 1.1 GW, tied to more than $24 billion in potential contracted revenue. The AMD agreements account for about 530 MW across five sites and more than $14 billion of that potential base value.

The quarterly statement also shows the cost of getting there: $797.5 million of capital spending and a construction schedule that must turn contracted megawatts into operating data halls.

The $14 billion attached to the AMD agreements and the $24 billion across the wider customer book are long-term potential values. They are not cash already collected, current annual revenue or guaranteed profit.

Core Scientific still has to finance construction, convert facilities, deliver power on schedule and keep the data centers running for customers whose hardware changes quickly.

The spending is already heavy, and the largest revenue figures extend over many years.

AI data centers also demand different infrastructure than Bitcoin mining farms.

A mining machine can tolerate a more basic building and can shut down when electricity prices spike. Advanced AI clusters need dense racks, fast networking, liquid cooling, strict uptime and carefully engineered power delivery.

The electrical interconnection may be the starting advantage. The conversion is still a major construction and operations job.

The Block reported that the arrangement begins above 500 MW in 2027 and gives AMD a route to scale through Core Scientific’s U.S. footprint rather than waiting to assemble every site from scratch. The possible 2.5 GW expansion is nearly five times the initial commitment.

AMD’s market-priced warrants add another layer to the deal. The chipmaker can gain equity exposure as Core Scientific delivers the infrastructure needed for larger Instinct deployments.

Power has become the bridge between crypto mining and artificial intelligence. Bitcoin miners spent years finding cheap electricity, negotiating with utilities, securing land and building high-capacity substations.

The AI boom arrived with a different workload and the same urgent need for megawatts. A powered site can now be valued by the Bitcoin it can produce or by the long-term compute contract it can support.

One value comes from the Bitcoin a fleet of specialized machines can mine. The other comes from the long-term contract an AI customer will sign to secure scarce data-center capacity.

For Core Scientific, the second value is winning.

The mining numbers make the shift even harder to miss. Self-mining represented about 13% of second-quarter revenue, while hosted mining contributed less than 4%.

The self-mining segment also posted a $12.2 million gross loss for the quarter. Colocation produced an $80 million gross profit on a 59% gross margin.

That comparison gives management a powerful reason to keep moving power from mining machines toward contracted compute customers when a site can support the conversion.

It does not mean every miner can copy the strategy.

Many facilities lack the fiber, cooling, location or power quality an AI deployment requires. Smaller miners may not have the capital to rebuild a campus or survive years between signing a deal and receiving full revenue.

Core Scientific reported a $1.16 billion quarterly net loss, although the company said the result was driven mainly by a noncash change in the value of warrants as its stock price rose.

That accounting effect should not be confused with an operating cash loss of the same size. The real pressure is visible elsewhere: nearly $800 million of quarterly capital spending and a construction pipeline that has to perform.

CoinDesk described the AMD agreement as an acceleration of Core Scientific’s move away from a mining-centered model. Its report connected the new customer commitment to the company’s decision to wind down more of the hardware arrangements that once defined its strategy.

Core Scientific has not announced the instant shutdown of every Bitcoin operation. The second-quarter accounts still include $21.5 million from self-mining and $6 million from hosting outside miners.

The company’s statement says remaining facilities will be repurposed as circumstances allow. Some sites may keep mining until fiber, cooling, financing and a signed customer make conversion technically and financially sound.

The hierarchy changed before the last mining machine switched off. Colocation already supplies more than four-fifths of quarterly revenue and nearly all of the company’s segment gross profit.

Bitcoin mining now provides optional revenue from infrastructure whose highest-value use may be a 15-year AI contract.

That is a profound reversal for a company that once built the infrastructure to chase block rewards.

The AMD partnership puts a huge number on the future—up to 2.5 GW—but Core Scientific’s current revenue split makes the transition real today.

The company is no longer asking whether a miner can become a data-center operator.

It is showing what the income statement looks like after the answer becomes yes.

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