Core Scientific is accelerating its transformation into an AI infrastructure company after announcing a $421 million acquisition of Bitcoin mining firm Polaris DS in Oklahoma.
Key Takeaways
- Core Scientific will acquire Polaris DS LLC for approximately $421 million in cash.
- The deal gives Core Scientific access to 440 megawatts of contracted power in Muskogee, Oklahoma.
- The company plans to expand the site to 1.5 gigawatts of gross power focused on AI and high density computing.
- Core Scientific continues shifting away from Bitcoin mining and deeper into AI data center infrastructure.
What Happened?
Core Scientific announced plans to acquire Oklahoma-based Bitcoin miner Polaris DS LLC as part of a major expansion of its AI-focused data center operations in Muskogee, Oklahoma. The transaction is expected to close in the third quarter of 2026, pending regulatory approvals.
The acquisition gives Core Scientific access to 440 megawatts of contracted power through Oklahoma Gas & Electric, helping the company rapidly scale its high density colocation business for artificial intelligence workloads.
Today, Core Scientific announced a multi-tiered strategy to scale its Muskogee, Oklahoma campus to approximately 1.5 GW of gross power, or approximately 1 GW of leasable power.
— Core Scientific (@Core_Scientific) May 6, 2026
Read the full press release here: https://t.co/RjN716JEuA pic.twitter.com/yUxR0cnusI
Core Scientific Expands AI Infrastructure in Oklahoma
The acquisition marks another major step in Core Scientific’s transition from a crypto mining company into an AI infrastructure provider. The company said its Muskogee campus could eventually reach approximately 1.5 gigawatts of gross power, translating into around 1 gigawatt of leasable capacity.
According to the announcement, Polaris owns approximately 40 acres of land adjacent to Core Scientific’s existing Muskogee operations, including an on site substation and electrical service agreements with Oklahoma Gas & Electric.
The transaction is expected to significantly accelerate the company’s ability to deliver additional computing capacity for future AI customers.
Core Scientific CEO Adam Sullivan said:
Construction Already Underway at Muskogee Campus
Core Scientific confirmed construction has already started on a second 82.5 megawatt facility at the Muskogee site. Initial delivery for the building is expected in the fourth quarter of 2027.
The company is also conducting load studies to increase grid connected power capacity and has developed plans for a scalable behind the meter energy solution. To support the broader expansion strategy, Core Scientific has secured approximately 250 acres of additional land.
The company’s current 70 megawatt facility, leased to AI cloud provider CoreWeave, is progressing through final testing and commissioning. The building is designed to support Nvidia GB300 systems and remains on track for delivery during the second quarter of 2026.
Bitcoin Miners Continue Pivot Toward AI
The deal reflects a broader industry trend where Bitcoin mining companies are increasingly repurposing their infrastructure for AI and high performance computing operations.
Large crypto mining firms already control valuable power infrastructure, industrial land, and cooling systems that are now in growing demand from AI companies seeking large scale compute capacity.
Core Scientific has been one of the most aggressive firms pursuing this transition. The company has steadily reduced reliance on Bitcoin mining revenue while expanding colocation services tied to AI workloads.
Its latest quarterly report showed total revenue declined to $79.8 million from $94.9 million year over year. However, revenue from colocation services increased sharply to $31 million, compared with $8.5 million during the same period a year earlier.
At the same time, Bitcoin mining revenue dropped from $79 million to $42 million.
Earlier this year, Core Scientific also announced a $3.3 billion private debt offering through senior secured notes alongside $1 billion in loans from JPMorgan and Morgan Stanley to support expansion plans.
Oklahoma Emerges as AI Infrastructure Hub
Oklahoma officials welcomed the latest expansion as another sign of growing investment in AI infrastructure and energy intensive computing projects.
“Core Scientific’s expansion shows what’s possible when strong partnerships and business-friendly policy come together,” Oklahoma Governor Kevin Stitt said.
The Muskogee campus was originally announced in 2022 as a large scale blockchain and crypto mining operation. The latest expansion signals how quickly former crypto mining infrastructure is being repositioned for AI demand.
CoinLaw’s Takeaway
In my experience, this deal shows how quickly the crypto mining industry is evolving into something much bigger than Bitcoin production alone. Companies that secured large scale energy access during the crypto boom are now sitting on some of the most valuable infrastructure assets in the AI race.
I found Core Scientific’s strategy especially aggressive because it is not simply adding AI services on the side. The company is actively rebuilding its business around AI data center demand. If AI infrastructure growth continues at its current pace, power access could become more valuable than Bitcoin mining capacity itself.
