Core Scientific’s Strategic Pivot Attracts Major Investment

A significant strategic shift at Core Scientific is drawing increased attention from institutional money managers. The company is moving its focus toward high-density colocation services and AI infrastructure, a move designed to reduce its reliance on the volatile cryptocurrency mining sector.

Market sentiment toward Core Scientific remains optimistic, with analysts maintaining a "Moderate Buy" rating. Research from Simply Wall St. points to a fair value estimate of $27.65 per share, suggesting a potential upside of approximately 62% from current levels. This projection is based on a forecast of $1.5 billion in revenue and $334.4 million in profit by the year 2028.

The stock's recent performance reflects this growing confidence. Shares closed at $17.11 last Friday, marking a modest daily gain of 0.176%. Over the past week, the equity advanced 5.56%, and it has climbed 12.86% across the preceding two-week period.

Institutional Investors Increase Their Stakes

This positive outlook is being mirrored by concrete action in the market, as several institutional investors have recently built or expanded positions in the company.

Should investors sell immediately? Or is it worth buying Core Scientific?

• VR Advisory Services acquired over 1.2 million shares.
• Ardmore Road Asset Management LP established a new position in Q2, purchasing one million shares valued at roughly $17.1 million. This investment makes Core Scientific the 27th-largest holding in Ardmore's portfolio.
• Kintayl Capital initiated a new stake of 570,054 shares during the third quarter.

These transactions coincide with the company's improving operational metrics in colocation and AI infrastructure. They signal a broader view among investors that Core Scientific is increasingly being evaluated as a data infrastructure company rather than a purely crypto-centric operation.

Financial Results Highlight the Strategic Transition

The company's evolving financial profile provides clear evidence of its strategic redirection. Growth in its new focus areas is closely tied to its contract with CoreWeave and other capacity expansion initiatives.

A key success metric is the surge in colocation revenue, which reached $10.6 million in Q2 2025—a substantial increase from the $5.5 million reported for the same quarter the previous year. This growth is attributed to the expansion of colocation operations, particularly at its facility in Denton, Texas.

Concurrently, revenue from proprietary digital asset mining declined to $62.4 million in Q2, down from $110.7 million year-over-year. This decrease was primarily driven by a 62% reduction in the amount of Bitcoin mined, underscoring the intended de-emphasis of this historically core business line.