Core Scientific (CORZ) rises 11.8% after receiving $3.3 billion Muskogee AI Campus expansion loan – What’s changed?

• In early May 2026, Core Scientific reported first-quarter revenue of USD 115.24 million compared to USD 79.53 million in the same period last year, while at the same time reporting a net loss of USD 347.19 million, primarily due to non-cash impairments, as it continued to transition from Bitcoin self-mining to AI-focused colocation services.
• At the same time, the company moved forward with an ambitious expansion of its Muskogee, Oklahoma, campus, aiming for approximately 1.5 gigawatts of total power, supported by a $3.3 billion senior secured debt offering and the planned acquisition of Polaris DS to expand its AI and high-performance computing data center footprint.
• Here we consider how this Muskogee campus expansion, backed by very large project bond financing, will reshape Core Scientific’s investment story.

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Core science investment story summary

To own Core Scientific today, you must believe that the company’s pivot from Bitcoin mining to AI and high-performance computing hosting will turn large contracted power capacity into profitable recurring colocation revenue, while managing significant up-front investment and historical balance sheet strain. The latest results, although revenue increased, highlighted the short-term focus on whether new AI/HPC capabilities can be filled quickly enough, with higher impairment losses. The key risk lies not in losses this quarter but in the execution and utilization of that enhancement.

The Muskogee expansion plan, targeted for approximately 1.5 gigawatts of total power and supported by $3.3 billion in senior secured debt, is at the heart of Core Scientific’s execution issues as it directly ties Core Scientific’s capital structure to its AI-focused colocation expansion. The same financing amplifies returns if Muskogee and similar sites are leased efficiently, increasing the risk of asset underutilization and balance sheet stress if demand or project schedules are delayed.

But behind this growth story, investors should also be aware of…

Read the full story on Core Scientific (it’s free!)

The Core Scientific story projects revenue of $1.4 billion and revenue of $439.9 million by 2029. This would require a 62.4% increase in annual revenue and an increase in revenue of $720.6 million from the current -$280.7 million.

We reveal how Core Scientific’s forecasts yield a fair value of $26.40, 18% above the current price.

explore other perspectives

Some of the most optimistic analysts expected revenue to reach approximately US$2.1 billion and profits to reach nearly US$988 million by 2029, but that optimism and aggressive AI capacity builds like those at Muskogee could be compounded by cooling or shifting demand. Compared to the risks that could lead to overcapacity, it highlights just how far the divide is and why this new expansion news could ultimately align those narratives in a completely different direction.

Check out 3 other fair value estimates for Core Scientific – Why the stock is only worth $26.40!

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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