Core Scientific

CORZ

Market cap $6.59B

The pundit in question now feels the shares only rate a hold. He's discouraged by the lack of dynamism in colocation deals.

Shares of AI infrastructure names are bouncing hard in early Monday trading, led by IREN (NASDAQ:IREN), up 17% to $39.28.

Bitcoin miners spent the past decade building out cheap electricity and heavy-duty power infrastructure. Now, some of the biggest artificial intelligence (AI) companies in the world are paying billions of dollars to use it.

Core Scientific is an electric power contractor for data centers. The company is growing quickly with AI, but is currently burning cash.

Core Scientific is transitioning from a volatile Bitcoin miner to a high-density AI colocation provider with long-duration, contracted revenue streams. Q1 2026 results show colocation revenue surged to $77.5M, now the dominant segment, with gross profit margins of 57% and a multi-gigawatt power pipeline. The expanded CoreWeave partnership validates CORZ's AI infrastructure pivot, supporting $10B+ in contracted revenue and 590MW leased, with further upside from pipeline conversion.

The semiconductor rotation and memory stock profit taking puts investors in a bind trying to call the top.

"A rising tide lifts all boats" is a popular piece of market jargon, but you can see why it sticks during rallies like the AI gold rush. Anyone and everyone is trying to get into the data center game today, including some former Bitcoin miners strategically pivoting to the next big thing.

Several ​large data centers and crypto facilities planning to connect to the Texas power grid ahead of ‌peak summer demand have failed key reliability tests, raising the risk of power outages just as electricity use hits its seasonal high, according to the state grid operator.

Bitcoin prices fell this week after cryptocurrency treasury company Strategy revealed it sold a small amount of its bitcoin holding. Traders on prediction market Kalshi think it's likely that the cryptocurrency will fall below $60,000, which would mark a new low in 2026.

If you're not familiar with the name Leopold Aschenbrenner, you should be.