Core Scientific, Inc. (CORZ): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Core Scientific, Inc. right now, and honestly, what you're seeing is one of the most significant pivots in the digital infrastructure space: a company moving aggressively from just mining Bitcoin to becoming a premier AI/HPC (High-Performance Computing) landlord. The 2025 numbers clearly show this shift, especially with that massive $10+ billion, 12-year colocation contract with CoreWeave, signaling a future where their power capacity is dedicated to AI workloads, not just hashing. Below, we break down the nine essential blocks of the Business Model Canvas to show you exactly how Core Scientific, Inc. is funding this transformation and where the real money is going to be made as they convert their existing facilities.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Key Partnerships

You're looking at the relationships that underpin Core Scientific, Inc.'s (CORZ) pivot from pure-play mining to high-density colocation (HDC) services, especially after the proposed merger with CoreWeave terminated on October 30, 2025. These partnerships are about securing power and locking in long-term, dollar-denominated revenue streams.

The primary hyperscale partner, CoreWeave, remains central, even after the merger vote failed. Before the termination, the relationship was set to be massive. An expansion announced in February 2025 brought the total contracted HPC infrastructure with CoreWeave to approximately 590 MW across six Core Scientific sites, which was projected to generate total revenue of $10.2 Billion over the 12-year contract terms. The terminated merger would have seen CoreWeave acquire 1.3GW of Core Scientific's gross power capacity. Post-merger termination, Core Scientific is still executing on a goal to deliver an additional 350 megawatts by the end of 2026, with 280 megawatts of that specifically dedicated to the existing CoreWeave contract.

Here's a quick breakdown of the scale of the CoreWeave commitment:

• Total contracted HPC infrastructure with CoreWeave: approximately 590 MW.
• Projected cumulative revenue from the expanded contract: $10.2 Billion over 12 years.
• Denton site load under the agreement: approximately 260 MW.
• Post-merger-termination commitment to CoreWeave by end of 2026: 280 MW.

The strategic financing aspect shows CoreWeave's direct investment into Core Scientific's CapEx. For the fiscal second quarter of 2025, Core Scientific reported total capital expenditures of $121.3 million, and $90.3 million of that was directly funded by CoreWeave under their contractual agreements. This is a clear example of a customer funding the infrastructure build-out required to serve them.

For energy providers, the focus is on securing and optimizing power. Core Scientific is actively planning the conversion of its infrastructure, intending to repurpose every megawatt in its portfolio into high-density colocation sites over the next 3 years as it winds down its digital asset mining portfolio. To demonstrate grid support capabilities, in January 2025, the company reduced power consumption on multiple occasions, delivering 48,236 megawatt hours to local electrical grids.

Regarding the mining fleet and suppliers, the shift to HPC means the existing mining fleet is being actively repurposed rather than simply upgraded. As of March 2025, Core Scientific operated approximately 156,000 owned bitcoin miners, representing a total energized hash rate of 18.1 EH/s. This fleet is being systematically de-cabled and converted to support AI GPU workloads. While the prompt mentions a 15 EH/s fleet upgrade, the latest operational data shows the existing fleet size and hash rate as of early 2025, with the strategic focus now being on infrastructure modification for HPC customers.

The scale of the infrastructure and power commitments can be summarized:

The company is clearly prioritizing these large-scale, long-term hosting contracts over its self-mining operations, planning to convert the majority of its facilities to support these next-generation workloads. Finance: draft 13-week cash view by Friday.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Key Activities

You're looking at the core engine of Core Scientific, Inc. (CORZ) right now, which is all about managing massive power and compute infrastructure. The key activities are a balancing act between their legacy digital asset mining and the aggressive pivot to high-performance computing (HPC) for AI workloads.

Operating and expanding High-Density Colocation (HDC) data centers is clearly the growth driver. As of the end of the second quarter of 2025, Core Scientific, Inc. had a billable power load of approximately 875 MW across ten facilities. This HDC segment is where the future revenue stability is, with HDC revenue hitting $15.0 million in the third quarter of 2025, a solid jump from $10.3 million in the third quarter of 2024. The company is targeting annualized colocation revenue of around $360 million entering 2026.

The self-mining operation is still a key activity, though it's being strategically reduced to free up power for colocation. As of month-end March 2025, Core Scientific, Inc. managed a fleet of over 156,000 owned bitcoin miners. This owned fleet generated 247 self-mined bitcoin in March 2025. The revenue from this segment was $57.4 million in the third quarter of 2025.

The conversion of facilities is happening at pace to support the new demand. Core Scientific, Inc. is in the process of converting most of its existing facilities to support artificial intelligence-related workloads and next-generation colocation services. This is backed by significant capital deployment, where in the third quarter of 2025, $196.4 million of the total capital expenditures of $244.5 million was funded by CoreWeave, Inc. under existing agreements. This conversion effort is designed to repurpose infrastructure while retaining access to electrical power under their control.

Providing grid support is a crucial, albeit variable, activity that helps manage power costs and maintain relationships with utility providers. Core Scientific, Inc. actively participates in power curtailment programs. For instance, in March 2025, the company delivered 35,295 megawatt hours to local electrical grids by reducing power consumption at its data centers on multiple occasions.

Here's a quick look at the operational scale and financial commitment for these key activities in 2025:

The company is also managing a substantial fleet for hosting customers, providing technology and operating support for approximately 7,000 hosted, customer-owned bitcoin miners as of the end of March 2025. This shows the dual nature of their infrastructure use.

The strategic allocation of contracted power shows the HPC pivot clearly:

• Total Contracted Power: Approx. 1.3 gigawatts (as of February 2025).
• Allocated for HPC Hosting: Approx. 900 MW.
• Allocated for Bitcoin Mining: Remaining 400 MW.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Key Resources

You're looking at the core assets Core Scientific, Inc. (CORZ) relies on to run its digital infrastructure game right now. These aren't just line items; they're the physical and financial muscle supporting the pivot to high-density colocation.

The physical footprint is substantial. Core Scientific, Inc. (CORZ) operates a large-scale digital infrastructure across $\mathbf{10}$ facilities situated in $\mathbf{seven}$ US states. As of the third quarter of 2025, these locations include Alabama (1), Georgia (2), Kentucky (1), North Carolina (1), North Dakota (1), Oklahoma (1), and Texas (3). This geographic spread helps manage power risk and access different markets.

The operational scale is best seen through power and compute capacity. The company reports a significant billable power capacity target of approximately $\mathbf{875}$ MW as of mid-2025. That's a massive amount of power dedicated to compute workloads. Also, check the owned Bitcoin mining fleet's performance; as of March 2025, the energized hash rate stood at approximately $\mathbf{18.1}$ EH/s. That's the raw hashing power they control for self-mining operations.

Financially, liquidity is key to executing this transition. As of the end of the second quarter of 2025, Core Scientific, Inc. (CORZ) maintained a strong liquidity position totaling $\mathbf{\$754.1}$ million. This figure includes both cash and digital assets, giving them the flexibility to fund ongoing strategic shifts, even with significant capital expenditures.

Here's a quick snapshot of these core resource metrics as of the latest reporting periods:

The infrastructure itself is a key resource, especially as they reallocate it. They are in the process of converting a significant portion of these facilities to support high-density colocation services, often for AI workloads, under contracts like the one with CoreWeave. This conversion is supported by the strong cash position.

You can see the breakdown of that Q2 2025 liquidity, which is important for understanding near-term flexibility:

• Cash and cash equivalents: $581.3 million
• Digital assets: $172.8 million

The physical assets-the data centers-are engineered for specific demands. They leverage advanced cooling systems and redundant power feeds, which is what allows them to command the premium pricing associated with high-density compute hosting. It's the foundation for their colocation revenue stream.

Finance: draft 13-week cash view by Friday.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Core Scientific, Inc. is pushing to stabilize its business, moving from volatile mining to long-term infrastructure contracts. The numbers here show where the focus is right now, late in 2025.

High-density colocation (HDC) optimized for AI/HPC workloads and liquid cooling.

The value here is in delivering purpose-built, high-power-density space for Artificial Intelligence (AI) and High-Performance Computing (HPC) customers. Core Scientific, Inc. reaffirmed its target of delivering 250 megawatts (MW) of high-density colocation capacity by the end of 2025. This is part of a larger commitment, with plans to reach 590 MW by early 2027. The strategic partnership with CoreWeave is the primary driver, with a total contracted HPC infrastructure of approximately 590 MW across six Core Scientific, Inc. sites. This relationship is projected to generate over $10 billion in potential cumulative revenue over 12-year contract terms. The HDC segment is showing growth, reporting revenue of $15.0 million in the third quarter of 2025, up from $10.3 million in the third quarter of 2024. Management anticipates entering 2026 with annualized colocation revenue of approximately $360 million. The commitment to advanced thermal management is clear, as the company stated it remains committed to delivering powered infrastructure equipped with advanced liquid cooling systems, specifically optimized for AI GPU cloud workloads, for its HPC customer beginning in the first half of 2025 [cite: 2 (second search)].

Scalable, low-cost, and reliable digital asset mining infrastructure.

While the focus shifts, the legacy digital asset mining infrastructure still provides value, especially given the higher Bitcoin price environment. In March 2025, Core Scientific, Inc. operated approximately 163,000 total bitcoin miners, with a self-mining energized hash rate of 18.1 EH/s. The company earned 247 bitcoin from its owned fleet in March 2025. The fleet efficiency metric, a measure of low-cost operation, stood at an average of 24.3 J/TH in March 2025. For context on the economics, the cost to mine one bitcoin was estimated at $56,627 in the first quarter of 2025. Self-mining revenue for the third quarter of 2025 was $57.4 million.

Proprietary software for mining optimization and data center management.

Core Scientific, Inc. describes itself as a provider of digital infrastructure, including software solutions and services to its third-party customers [cite: 6 (second search)]. The optimization capability is evidenced by the fleet efficiency metric for its miners, which was 24.3 J/TH in March 2025. The company is also in the process of converting facilities to support AI/HPC workloads, which requires sophisticated management of power and compute resources [cite: 6 (second search)].

Energy flexibility and grid stability through power curtailment services.

The ability to flex power consumption provides value to the electrical grid, which can translate into lower operating costs and potential service revenue. In January 2025, Core Scientific, Inc. reduced power consumption on multiple occasions, delivering 48,236 megawatt hours (MWh) to local electrical grids. In March 2025, the company delivered 35,295 MWh to local electrical grids. Furthermore, power costs for the company decreased by 33% in the first quarter of 2025 due to lower rates and usage, which is partially a result of this flexibility.

The company spent $31.0 million in new site development at non-CoreWeave locations in Q2 2025 [cite: 6 (second search)].

Core Scientific, Inc. (CORZ) - Canvas Business Model: Customer Relationships

You're looking at how Core Scientific, Inc. manages its relationships with the entities that pay for its infrastructure and services as of late 2025. The model clearly segments customers based on the service provided, moving aggressively toward long-term, high-density compute contracts.

Dedicated, long-term, take-or-pay contracts for HDC (e.g., CoreWeave)

The relationship with CoreWeave, Inc. is defined by massive, multi-year, capital-intensive agreements for High-Density Colocation (HDC), formerly HPC hosting. This structure shifts significant capital expenditure risk to the customer.

The total contracted HPC infrastructure with CoreWeave is approximately 590 MW across six Core Scientific sites. This relationship is underpinned by projected cumulative revenue reaching $8.7 billion over 12-year contract terms, following the exercise of the final option. Core Scientific anticipates entering 2026 with annualized colocation revenue of approximately $360 million.

The financial commitment is evident in the capital expenditure funding:

The revenue generated from this segment shows clear growth as capacity comes online:

• HDC Revenue (Q3 2025): $15.0 million.
• HDC Revenue (Q2 2025): $10.6 million.
• HDC Revenue (Q1 2025): $8.6 million.

Core Scientific is on track to deliver 250 MW of billable capacity to CoreWeave by the end of 2025. The total operational compute capacity is 1.3 gigawatts.

Managed service agreements for hosted Bitcoin mining customers

This relationship involves Core Scientific managing infrastructure for third-party Bitcoin miners, though the focus is strategically shifting away from this segment toward HDC.

The revenue from this segment has declined as the company executes its strategic pivot:

• Digital Asset Hosted Mining Revenue (Q3 2025): $8.7 million.
• Digital Asset Hosted Mining Revenue (Q2 2025): $5.6 million.
• Digital Asset Hosted Mining Revenue (Q1 2025): $3.8 million.

The Q3 2025 figure of $8.7 million is down from $16.9 million in Q3 2024. The Q2 2025 figure of $5.6 million is down from $24.8 million in Q2 2024.

Transactional relationship with the Bitcoin network for self-mining rewards

This relationship is purely transactional, based on the variable reward from successfully mining a block on the Bitcoin network, which is subject to the block reward halving event.

Self-mining revenue remains a significant, though decreasing, portion of the total revenue stream:

Approximately 400 MW of Core Scientific's power footprint is still dedicated to self-mining BTC. The Q1 2025 self-mining gross profit margin was 9%, compared to 46% in Q1 2024.

Finance: draft 13-week cash view by Friday.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Channels

Direct sales efforts target hyperscale and enterprise colocation clients, evidenced by High-Density Colocation ("HDC") revenue reaching $15.0 million in the fiscal third quarter of 2025, a 45% year-over-year increase.

The company has a total contracted power capacity of 1.3 GW, with a strategic allocation plan:

Core Scientific, Inc. operates proprietary data center facilities and infrastructure across ten locations in Alabama, Georgia, Kentucky, North Carolina, North Dakota, Oklahoma, and Texas.

• Total contracted HPC infrastructure with CoreWeave is 590 MW across six sites.
• The company reaffirmed its target of delivering 250 MW of HDC capacity by the end of 2025.
• HDC gross margin in Q3 2025 was 26%.

The channel utilizing the global Bitcoin network for self-mined digital assets saw a significant power shift, as the company is diverting resources to AI workloads.

• Bitcoin mined from the self-mining fleet in Q3 2025 decreased by 55% year-over-year.
• In March 2025, Core Scientific, Inc. earned 247 bitcoin from its owned fleet.
• As of March 31, 2025, the company operated approximately 156,000 owned bitcoin miners, representing an energized hash rate of 18.1 EH/s.

Hosted mining revenue, which also uses this channel, was $8.7 million in Q3 2025, down from $16.9 million year-over-year as the company wound down this segment.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Customer Segments

You're looking at Core Scientific, Inc. (CORZ) and seeing a company in transition, moving from a primary focus on digital asset mining to becoming a major provider of high-density digital infrastructure. This shift means the customer base is evolving, with a clear emphasis on securing long-term, high-value contracts from AI and large-scale computing enterprises. The data from the third quarter of 2025 (Q3 2025) clearly shows this split in the customer base.

The customer segments Core Scientific, Inc. serves are distinct, yet interconnected through their shared need for massive, reliable power and data center capacity. The company essentially operates in three revenue-generating buckets, all tied to its digital infrastructure footprint.

AI Hyperscalers and large-scale High-Performance Computing (HPC) enterprises.

This is the growth engine, now formally called High-Density Colocation (HDC). These customers, which include major AI players like CoreWeave, require massive, dedicated power and cooling for their specialized hardware. The commitment here is substantial; Core Scientific, Inc. anticipates entering 2026 with an annualized colocation revenue run-rate targeted at $360 million. For Q3 2025, the revenue from this segment hit $15.0 million, which was a 45% increase from the $10.3 million seen in Q3 2024. The capital expenditure required for this growth is largely covered by these customers; for instance, $196.4 million of capital expenditures in Q3 2025 were funded by CoreWeave under existing agreements. The near-term goal for this segment was delivering 250MW of billable capacity to CoreWeave by the end of 2025.

Institutional digital asset miners requiring hosting and operational support.

This segment involves institutional clients who own their own mining hardware but pay Core Scientific, Inc. to host, power, and maintain it. This is the Digital Asset Hosted Mining revenue stream. In Q3 2025, this revenue was $8.7 million. This figure reflects the strategic shift away from this business line, as it was down from $16.9 million in the prior-year period. This intentional reduction is freeing up power and operational focus for the higher-value HDC customers. The total energized hash rate dedicated to hosting customers was approximately 1.0 EH/s as of March 2025, representing about 4% of the total energized hash rate at that time.

The broader financial market through the sale of self-mined Bitcoin.

This is the legacy core business, the Digital Asset Self-Mining segment. While the company is pivoting, this activity still generates the largest portion of top-line revenue, though its profitability is pressured by the Bitcoin halving and operational shifts. In Q3 2025, self-mining revenue was $57.4 million. This revenue was achieved despite a 55% decrease in the actual Bitcoin mined during the quarter compared to the prior year, with the decline partially offset by an 88% increase in the average Bitcoin price. As of March 2025, the company operated approximately 156,000 owned bitcoin miners, representing a self-mining energized hash rate of 18.1 EH/s.

Here's the quick math on the revenue mix for Q3 2025, which shows the current state of these customer segments:

The segments tied to digital asset mining (Self-Mining and Hosted Mining) combined for $66.1 million in Q3 2025, down year-over-year, but the HDC segment is clearly the area of strategic focus and growth. If onboarding takes 14+ days for a new HPC client, churn risk rises, so speed in deployment is key. The company maintains a strong liquidity position to support this transition, ending Q3 2025 with $694.8 million in total liquidity, including $453.4 million in cash.

Finance: draft 13-week cash view by Friday.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Cost Structure

You're looking at the cost side of Core Scientific, Inc. (CORZ) as they aggressively pivot from pure-play mining to high-density colocation (HDC) infrastructure. This transition means a massive shift in their cost profile, moving from primarily variable power costs to significant, front-loaded capital investment.

High variable cost of electricity/power for mining and colocation.

The cost of power remains a core variable expense, though the mix is changing as the company shifts focus. While specific electricity cost per megawatt is not explicitly detailed for Q3 2025, the operational strain is visible in the expense metrics. The company saw a $14.4 million increase in cash operating expenses year-over-year for the third quarter of 2025. This reflects the ongoing, high-energy demands of both the remaining self-mining operations and the expanding colocation footprint. To be fair, the shift to HDC is showing margin improvement in that segment; the colocation gross margin reached 26% in Q3 2025, up from 13% in the prior-year period. Still, the overall consolidated gross profit for the quarter was only $3.9 million on total revenue of $81.1 million.

Significant Capital Expenditures for HDC conversion and expansion (e.g., $244.5 million in Q3 2025).

The most striking cost element in late 2025 is the sheer scale of investment required for the strategic transformation. Core Scientific, Inc. reported Capital Expenditures of $244.5 million for the third quarter of 2025. This spending represents the front-loaded investment for building out the high-density infrastructure needed for new customers. Honestly, the company managed to de-risk a huge portion of this outlay; $196.4 million of that Q3 2025 CapEx was funded by CoreWeave, Inc. under their colocation service agreements. Year-to-date, the total capital expenditures had ballooned by 586% to $467 million.

Data center operations and maintenance expenses.

Beyond the massive CapEx, the day-to-day costs of running the facilities are substantial and growing. The total Operating Expense for Q3 2025 was reported at $52.89 million, marking a 30.42% year-over-year increase. A major driver of this was the Selling, General, and Administrative (SG&A) expenses, which spiked 72% year-over-year to $69.4 million in Q3 2025. This widening structural overhead contributed to the operating loss of $(57.4) million for the quarter.

Here's a quick look at the key Q3 2025 expense and cost-related metrics:

Depreciation and amortization of digital infrastructure and miners.

While Core Scientific, Inc. does not explicitly break out Depreciation and Amortization (D&A) separately from other non-cash charges in the readily available summaries, its impact is embedded within the GAAP net loss. The net loss for Q3 2025 was $146.7 million. A significant portion of the year-over-year improvement in the net loss was due to a smaller GAAP non-cash fair value adjustment for warrants and contingent value rights, which was $74.9 million in Q3 2025 versus $408.5 million in Q3 2024. The actual D&A, which reflects the wear and tear on the massive digital infrastructure and miners, is a key component of the operating expenses and the resulting operating loss of $(57.4) million. The company's total assets stood at $2.29 billion in Q3 2025, which will continue to generate significant depreciation charges against future earnings.

Core Scientific, Inc. (CORZ) - Canvas Business Model: Revenue Streams

You're looking at Core Scientific, Inc. (CORZ) and seeing a company actively pivoting its entire revenue engine away from pure digital asset mining toward high-density colocation, which is where the big long-term contracts are. The latest figures from the third quarter of 2025 show this transition clearly in action.

The total revenue for the fiscal third quarter of 2025 was $81.1 million, which was a decrease from the $95.4 million reported in the third quarter of 2024. This drop reflects the deliberate strategy to divert power away from self-mining to support the growing colocation business.

Here is the breakdown of the revenue streams for the third quarter of 2025, showing the current mix:

The company is executing on its commitment to the high-density colocation segment, which is now the primary growth driver. This segment is supported by major capacity delivery milestones, like the plan to deliver 250MW of billable capacity to CoreWeave by the end of 2025.

The forward-looking revenue expectation for this segment is substantial, signaling the success of the strategic pivot. Core Scientific, Inc. is targeting $360 million annualized colocation revenue entering 2026. This is the number that matters most for the new valuation narrative.

To give you a sense of the scale of the shift, the first quarter of 2025 showed a different mix, though the Q3 data is fresher:

• Digital asset self-mining revenue in Q1 2025 was $67.2 million.
• Colocation revenue in Q1 2025 was $8.6 million.
• Digital asset hosted mining revenue in Q1 2025 was $3.8 million.

The HDC segment is expected to generate over $10 billion in revenue over a 12-year contract period with CoreWeave, with anticipated profit margins in the 75% to 80% range for that colocation business. That's the real prize here.

Finance: draft 13-week cash view by Friday.