2. Core Scientific (NASDAQ:CORZ)
Situational Awareness Stake Value: $389,086,756
Core Scientific (NASDAQ:CORZ) is another former Bitcoin miner in Situational Awareness’s portfolio that is transitioning toward AI infrastructure. Core Scientific builds and operates large-scale data centers that provide the physical infrastructure — power, cooling, and space — that AI computing requires. Its moat lies in its existing grid-connected power capacity, which is available to lease today, and its proven ability to deliver that capacity to customers on tight timelines. Most of its assets are expected to be ready for service within the 12 to 14-month window that hyperscalers and neoclouds are actively trying to fill.
Its key customer is CoreWeave, the fast-growing AI cloud provider, which has contracted 590 MW of capacity from Core Scientific in total. Core Scientific (NASDAQ:CORZ) is already billing CoreWeave for 243 MW of that, equivalent to more than $350 million in annualized revenue, with the remaining 347 MW being delivered in stages through the next 12 months. The long-term anchor from this relationship is management’s own guidance of approximately $850 million in average annual run-rate revenue from the CoreWeave contract over the next 12 years, with long-term gross margins guided at 75% to 80%.
In Q1 2026, total revenues rose 44% year over year, driven by colocation revenue, which was up 801% year-over-year.
Jackson Peak Capital stated the following regarding Core Scientific, Inc. (NASDAQ:CORZ) in its Q1 2026 investor letter:
“A position worth highlighting this quarter is Core Scientific, Inc. (NASDAQ:CORZ). We re-engaged with CORZ during Q1 after exiting in Q4, as the stock retraced to attractive levels just as we were looking to add to the AI infrastructure theme on the developments above. Specifically, CORZ is a beneficiary of the compute shortage as it has valuable data center co-location capacity, which is structurally short of supply heading into the remainder of 2026 as the leading AI labs and hyperscalers all look for power and shovel-ready sites.
CORZ is one of the few public companies with shovel-ready capacity at scale. It is a high-performance computing (HPC) colocation provider that pivoted from crypto mining to AI infrastructure, and the foundation of the business today is its ~590 MW contract with CoreWeave under 12-year hosting agreements, representing over $10 billion in total contracted revenue. Beyond the CoreWeave contract, CORZ has approximately 1.5 GW of total leasable power in the pipeline. Management has stated that they are in active dialogue with multiple parties and that colocation leasing agreements are expected in the near future.
Management is incentivized to diversify away from the single CoreWeave contract after the CoreWeave acquisition fell apart, and the entry valuation in Q1 was not pricing in any additional contracts. The catalyst path is one or more new colocation customers announced over the remainder of 2026, each of which should drive a re-rating as revenue grows and concentration risk declines. The primary risks are execution, the pace of new customer signings, and the broader AI spending cycle.”
