NEW YORK, July 28, 2026, 12:00 p.m. EDT
- U.S. markets operated as usual. Core Scientific shares fell 2.7% to $20.17 just before midday.
- The package tied to Advanced Micro Devices NASDAQ:AMD involves roughly 530 megawatts and represents over $14 billion in possible base revenue.
- According to an SEC filing, 29% of the initial capacity is allocated to an undisclosed neocloud. AMD was also granted warrants for as many as 30 million shares.
Core Scientific shares declined by 2.7% during late-morning trade on Tuesday. The stock gave up an earlier premarket climb of about 5% after the announcement.
The shift followed as investors looked past the $14 billion headline, focusing on the specifics. These encompass an indirect tenant and the chance of a significant share overhang.
AMD agreed to direct leases totaling 377 megawatts across three locations. A neocloud, whose name has not been disclosed, leased an additional 152 megawatts, amounting to roughly 29% of the initial set. AMD also established individual credit-support deals for these leases.
| Headline item | Filing detail | Preliminary investor measure |
|---|---|---|
| Initial allotment of about 530 MW | 377 MW leased straight to AMD; 152 MW allocated to a neocloud | Approximately 29% not leased out to AMD |
| Warrants at market rates | Up to 30 million shares at $23.47; 6.5 million have vested | 9.4% of shares as of June included; 2.0% have already vested |
| Up to 2.5 GW possible | AMD eligible to reserve an additional 1,925 MW until December 28, 2028 | The majority of further capacity remains available as a reservation |
The estimates are based on Core Scientific’s 319.6 million shares outstanding as of June 30. Exercising all warrants for cash would generate roughly $704 million in proceeds. The figures are preliminary.
The new package comes out ahead in another way. It accounts for close to 48% of Core Scientific’s reported 1.1 gigawatts of leased capacity, but delivers around 58% of the minimum value indicated in the contract.
The ratio suggests a greater contract value for each megawatt. Details such as specific pricing, power pass-through fees and timing of revenue have not been revealed.
The base lease terms are set at 15 years, with an additional three options to extend for five years each. Customer installations are expected to start in 2027.
The deal may also help lower customer concentration. At present, all of Core Scientific’s colocation income comes from CoreWeave NASDAQ:CRWV. In the second quarter, a single colocation client accounted for 83% of overall revenue.
Core Scientific has already shown a change in its operations. Revenue for the second quarter climbed 109% to $164.2 million. The colocation segment generated $136.7 million, accounting for around 83% of overall revenue.
Adjusted earnings before interest, taxes, depreciation and amortization were $41.1 million, up from $28.5 million in the same period last year.
The project continues to demand substantial capital. Capital expenditure for the quarter totaled $797.5 million, almost five times higher than revenue. Available liquidity was $1.82 billion, and long-term debt amounted to $4.30 billion.
The Hunt County and Muskogee AMD lease locations do not have the customer-financed arrangement seen with previous CoreWeave conversions. As a result, Core Scientific faces greater vulnerability to fluctuations in construction expenses and equipment price increases.
The company posted a net loss of $1.16 billion, mainly due to non-cash adjustments in warrant values related to a higher share price. Operating cash flow in the first half was positive at $230.9 million, while cash used in investing activities totaled $1.18 billion.
Mathew Hein, AMD’s chief strategist, stated the collaboration will “expand access” to critical AI infrastructure. Core Scientific’s CEO Adam Sullivan said the deal would “support AMD’s technology roadmap.” Business Wire
AMD stock dropped 6.6% to $462.27 during late-morning trade. According to Reuters, the decrease mirrored softness seen in other chipmakers, reducing the potential for the move to be attributed to any particular deal.
Risks persist. Revenue is expected to start in 2027, subject to factors such as construction, electricity, permitting, and customer credit. Additional warrant vesting may increase the number of shares.
The deal gives Core Scientific a more robust revenue composition and reduces its prospective reliance on CoreWeave. However, it introduces indirect counterparty risk, significant construction expenses and the possibility of dilution. Tuesday’s market move did not settle that balance.
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