Track market-moving stories before they get noisy

A Texas grid operator quietly disclosed something about Cipher Mining that sent the stock surging 9% before the company said a word, and the ripple moved two of its rivals in the same direction.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Shares of Cipher Mining (NASDAQ:CIFR) are up 9% to $16.42 in early Wednesday trading after the Electric Reliability Council of Texas (ERCOT) disclosed conditional grid capacity covering 3.2 gigawatts across Cipher’s Texas projects. The disclosure came through the state grid operator’s Batch Zero process rather than through a company release, which is why the move arrived with no Cipher headline attached to it. That’s an unusual setup for a same-session gain in a name this size.

Peer names are moving in sympathy on the same ERCOT read. Core Scientific (NASDAQ:CORZ) stock is up 4% to $16.76, and IREN (NASDAQ:IREN) stock is up 2% to $42.57. Cipher, Core Scientific and IREN were all sold off a day ago as the artificial intelligence (AI) buildout trade came apart, and today the same three names are bid on a single power disclosure that has nothing to do with mining.

The wider sector is barely participating. The Global X Data Center & Digital Infrastructure ETF (NASDAQ:DTCR) is up 1% to $27.47. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.35% to $760, so CIFR stock is running well ahead of the sector it sits in rather than moving with the group.

ERCOT Batch Zero Drives the Move ERCOT created the Batch Zero process earlier this year to work through a queue of large-load interconnection requests dominated by data centers, evaluating projects in batches rather than in the order they arrived. A base load classification covers power expected to be consumed continuously, and Cipher’s 3.2 gigawatt share sits inside that framework, according to Electric Reliability Council of Texas. These classifications are conditional and remain subject to verification and further audits, so they mark a position in a process rather than a completed grid connection.

The same process has produced conditional classifications for other listed operators, including Core Scientific, which helps explain the sympathy bid across this small cohort. No Cipher press release accompanied the move today, and the disclosure sits with ERCOT rather than with any of the three companies whose stocks are reacting to it. That flips the usual pattern, where a company release drives its own stock.

Why Power Access Now Drives This Cohort Power is the binding constraint on projects like Cipher’s, so a conditional base load classification moves Cipher from a queue position toward capacity it can actually energize. What Cipher has gained is standing and sequence rather than a guaranteed connection, and further audits still have to land before a single megawatt is served. Even so, a spot in an ERCOT queue is the piece of paper the market has been waiting for on this name.

The profit math behind the pivot is stark. CoinShares, in its most recent quarterly Bitcoin (CRYPTO:BTC) mining report, estimated that artificial intelligence workloads generate annualized profit of roughly $1.5 million per megawatt against $0.5 million per megawatt for Bitcoin mining. That report also said Cipher expected mining to become immaterial to its business and was winding that operation down, which puts Cipher’s Texas capacity squarely in the higher-margin AI lane.

Core Scientific and IREN sit in the same trade, both having pivoted from Bitcoin mining toward hyperscale and AI colocation. That power-and-cooling buildout is exactly what our free report on seven AI infrastructure names maps out. Both are also sensitive to how ERCOT sequences Texas load, which is why a Cipher-specific disclosure carries the peer group with it and why yesterday’s selling in the same three names reversed on news from a grid operator rather than any company treasurer.

What to Watch The Cipher stock move rests on a grid-operator disclosure rather than a company update, so any follow-on commentary from Cipher on how that Texas capacity fits into its footprint could shape the next leg, according to Electric Reliability Council of Texas. Investors can watch for whether the sympathy bid in Core Scientific and IREN holds through the session or fades once the initial ERCOT headline is priced in.

Cipher’s broader trade is now about access to electricity rather than anything specific to mining or to any single earnings release. If more Batch Zero classifications land in coming sessions, Cipher, Core Scientific and IREN could keep moving on ERCOT paper rather than on quarterly results, and investors sizing their exposure to the group should treat conditional capacity as standing in a queue rather than as revenue in hand.

Contact [email protected] for any questions or corrections.

Texas Power Play: Hut 8 Sparks a $9.8B AI Infrastructure DealCore Scientific NASDAQ: CORZ said it has entered a commercial partnership with AMD covering up to 2.5 gigawatts of data center capacity, beginning with approximately 530 megawatts across five campuses under 15-year agreements.

Chief Executive Officer Adam Sullivan said the initial agreements represent more than $14 billion of base contracted revenue and include 2.5% annual escalators. The company now has about 1.1 gigawatts of total contracted billable capacity, representing more than $24 billion of base contracted revenue, according to management.

Get Core Scientific alerts:

How TeraWulf’s Anthropic Deal Booted Up a $19B AI EmpireThe AMD commitment includes roughly 380 megawatts delivered directly to AMD through triple-net leases at Core Scientific's Pecos, Hunt and Muskogee sites. The remaining approximately 150 megawatts at the Auburn and Dalton campuses will support an unnamed Neocloud customer through modified gross leases, with AMD providing full credit support for the 15-year terms.

Sullivan said the AMD credit support arrangements do not include equity step-in rights, which he said protects Core Scientific's equity investments in the projects. The company also issued AMD a warrant with a strike price reflecting current market levels, subject to certain commercial conditions.

Expansion rights and development plans These 3 Bitcoin Miner Stocks Are Riding the AI Data Center BoomAMD has exclusive reservation rights, at specified times and under specified conditions, to lease as much as an additional 2 gigawatts of capacity. Core Scientific said it believes it can make that capacity available through additional grid-connected power, capacity progressing through load studies and behind-the-meter power solutions at Pecos, Hunt and Muskogee.

Management did not provide specific timing for the additional capacity. Sullivan told analysts that the company would work closely with AMD on future requirements and would not discuss capacity covered by the reservation agreement with other prospective customers.

The company said Pecos and Muskogee each have the potential to support up to 1 gigawatt of leasable capacity through a combination of additional grid power and behind-the-meter solutions. During the question-and-answer session, management said behind-the-meter development timelines could be driven by lateral pipeline construction and equipment availability, depending on the site. The company is considering technologies including turbines, fuel cells, linear generators and other alternatives.

Separately, Core Scientific said it has identified a pipeline of more than 2 gigawatts of potential incremental power at new sites, with initial capacity potentially available from late 2028 through 2030. The company said it intends to selectively acquire powered land and develop new locations while continuing to execute contracted projects.

Construction milestones and delivery schedule Chief Operating Officer Matt Brown said Core Scientific is currently billing for 437 megawatts of capacity, having substantially completed four of five CoreWeave campuses ahead of its prior timeline. The company had expected to substantially complete those sites before the end of summer.

Dalton Phase Two, the fifth and final CoreWeave campus, is expected to begin delivering its remaining 150 megawatts at the end of 2026 and be completed in early 2027, Brown said.

For AMD, Pecos is expected to be the first location to begin delivery, with initial megawatts scheduled for the first half of 2027. Management said about half of the 530-megawatt commitment is expected to be delivered in 2027, with the balance delivered in 2028.

Brown said vertical construction is underway at Pecos, major infrastructure equipment is arriving, and the building shell for the first 185 megawatts is nearing completion. Hunt, Auburn, Muskogee and Dalton Phase Three are advancing through design, procurement, site preparation and construction.

Management said the company had begun developing several AMD-related locations before customer contracts were signed. It had secured long-lead equipment, released capital for substation construction at multiple sites and engaged general contractors and labor resources. Sullivan said the company has equipment secured and contractors on site across the five campuses.

Core Scientific expects all-in construction costs of approximately $11 million to $12 million per megawatt for high-density AI infrastructure. Brown said that estimate includes construction labor, owner-furnished equipment such as transformers, switchgear, generators and cooling systems, as well as engineering, permitting, utility interconnection, insurance, testing and other soft costs.

He said higher costs relative to the earlier CoreWeave program reflect increases in equipment and labor costs, supply-chain constraints, tariffs and differences in site design. Management said labor availability remains a significant construction cost driver in competitive U.S. markets.

Second-quarter financial and funding update Chief Financial Officer Jim Nygaard said second-quarter GAAP colocation revenue rose sequentially to $137 million, aided by the increase in billable capacity. He said the company expects another meaningful increase in colocation revenue during the third quarter.

Under GAAP accounting, revenue from the CoreWeave contracts is recognized on a straight-line basis over the 12-year lease terms, effectively recognizing contractual escalators earlier in reported revenue, Nygaard said.

Core Scientific continued to wind down its Bitcoin mining operations during the quarter. The company ended June with nearly 30% fewer miners online than at the end of the first quarter and was self-mining at only two sites. Nygaard said mining activity is expected to continue declining through the remainder of 2026 as the business is operated primarily to offset contractual power costs.

Second-quarter cash selling, general and administrative expense was about $36 million, up $4 million sequentially, primarily due to one-time professional fees related to recent debt financing. Nygaard said the company views the low-$30 million range as a reasonable quarterly SG&A baseline, though expenses may vary as it supports growth.

Core Scientific ended the second quarter with approximately $1.8 billion in liquidity. The company estimates the initial AMD build-out will require about $6 billion of capital and expects to finance it through project-level bonds. It also said it is prepared to invest up to approximately $1 billion to advance roughly 500 megawatts of initial future capacity ahead of customer contracts.

Nygaard said the company expects to use project-bond structures similar to those used for its CoreWeave projects. He added that the direct AMD leases and the Neocloud leases backed by AMD credit support would have distinct contractual structures but would be financed through similar project-level vehicles.

About Core Scientific (NASDAQ:CORZ)Core Scientific, Inc NASDAQ: CORZ is a leading provider of large-scale blockchain infrastructure and digital asset mining services. The company develops, owns and operates high-performance data centers optimized for the mining of Bitcoin and other proof-of-work cryptocurrencies. In addition to its core mining operations, Core Scientific offers colocation, hosting and managed services designed to support institutional clients and enterprise users in deploying and scaling blockchain nodes and computing hardware.

Core Scientific's service portfolio includes hardware procurement, deployment and maintenance, real-time monitoring, power management and network connectivity.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in Core Scientific Right Now?Before you consider Core Scientific, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Core Scientific wasn't on the list.

While Core Scientific currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.

Get This Free Report