Core Scientific bills CoreWeave for 485 MW of 590 MW contract in Q3 2026

The 485 MW represented about 82% of the 590 MW contract. Third-quarter GAAP colocation revenue rose nearly 60% from the second quarter to $215 million, and adjusted EBITDA more than tripled to $134 million from $41 million, chief financial officer Jim Nygaard said. The adjusted EBITDA margin widened to 57% from 25%.

Nygaard credited 90 MW of new capacity entering billing during the quarter and a full quarter of contributions from capacity delivered in the second quarter. He expects a double-digit sequential rise in fourth-quarter revenue as more capacity enters billing. The remaining roughly 100 MW under the 590 MW agreement is expected to be delivered by early 2027, chief executive Adam Sullivan said.

CoreWeave contract revenue is recognized on a straight-line basis over the 12-year lease terms, which pulls contractual escalators forward, Nygaard said.

AMD build-out

Core Scientific's initial 530 MW agreement with AMD remains on schedule, with first delivery expected in the first half of 2027 at Pecos, Texas. About half of that capacity is due online in 2027 and the balance through 2028, Sullivan said. The company has already invested its required equity contribution for that phase and is working to secure the remaining project financing. AMD also holds exclusive reservation rights over roughly 1.9 GW of additional capacity that is not yet contracted; most commitment deadlines fall in 2027, with a final deadline at the end of 2028.

The company estimates build costs for the current AMD leases at $11 million to $12 million per megawatt. Once the roughly 1.1 GW contracted across CoreWeave and AMD is fully delivered and billing, Core Scientific expects it to generate $1.8 billion in average annual run-rate revenue and $1.6 billion in net operating income, Sullivan said.

Project bonds remain the expected financing route for the AMD projects, though the company is evaluating other debt options. Nygaard said Core Scientific does not expect to issue additional equity or equity-linked securities to fund the first phase. Lenders and investors have sought more comprehensive diligence on project details, but the company has not seen changes in financing terms or covenants, he said.

Liquidity and mining exit

Core Scientific ended the quarter with about $1.7 billion in liquidity: $800 million in cash, $840 million in restricted cash and debt service reserves, and $100 million of revolver availability. That was down about $1 billion from the second quarter, reflecting $540 million of capital expenditure and roughly $440 million for the Polaris acquisition.

Nygaard said the company expects about $650 million in cash proceeds from the exercise of Tranche 1 warrants around their January 2027 expiration. The priority for that capital is to support proactive builds and serve as equity for additional sites, he said.

Both Texas sites have secured stormwater permits, and Core Scientific is still working through air permits for backup generators, which it expects to qualify under a permit-by-rule framework, Sullivan said. Pecos remains on schedule for initial delivery in the first half of 2027, while the Hunt campus has been included in an upcoming grid stability assessment, he said.

Core Scientific continued to wind down Bitcoin mining in the quarter and expects to complete the exit in the fourth quarter, entering 2027 as a pure-play high-density colocation provider, Nygaard said.