Core Scientific: A Singular Conviction

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Helix Partners Management, with a discernment not always evident in their peers, have recently augmented their holding in Core Scientific by 350,000 shares. The transaction, amounting to some $6.10 million based on the quarter’s fluctuating valuations, suggests a faith bordering on the obstinate. One observes such devotion with a mixture of curiosity and mild alarm.

A Peculiar Enthusiasm

The aforementioned Helix Partners, it appears, now allocate no less than 27.41% of their reported assets to this enterprise. A considerable weighting, even in these speculative times. The filing, dated February 13, 2026, reveals a portfolio where Core Scientific dominates, eclipsing more conventional holdings. The overall position, admittedly, has seen a paper decline, a consequence of both market vagaries and, one suspects, a certain zealous reinvestment.

The Landscape of Belief

  • This is not mere diversification, but a declaration. Core Scientific now constitutes a substantial portion of Helix Partners Management LP’s 13F reportable assets.
  • The principal holdings, after this rather emphatic endorsement, are as follows:
    • NASDAQ: CORZ: $81.54 million (27.41% of AUM)
    • NYSE: GNL: $30.96 million (19.1% of AUM)
    • NASDAQ: SATS: $26.09 million (16.1% of AUM)
    • NYSE: CNK: $6.97 million (4.3% of AUM)
    • NYSE: PDM: $5.21 million (3.2% of AUM)
  • As of February 12, 2026, Core Scientific shares traded at $17.48, a gain of 44.6% over the year. A respectable performance, though one notes the S&P 500 managed to keep pace, albeit with less dramatic flair.

A Company in Transition

Core Scientific, Inc. occupies a niche, providing digital asset mining, blockchain infrastructure, and colocation services. They generate revenue from both proprietary mining and hosting solutions for those with the capital and, one imagines, the inclination. The business model, a dual arrangement, relies on direct digital asset mining and recurring fees. Their clientele, predictably, include large-scale digital asset miners and enterprises seeking secure, scalable blockchain infrastructure. A curious confluence of ambition and technology.

The company operates on a scale that suggests seriousness, across North America. They employ advanced data center facilities and proprietary software to optimize mining efficiency and offer robust hosting solutions. It is, in essence, a technology play, though one wonders if the underlying assets are quite as substantial as the rhetoric suggests.

The Implication for Investors

Portfolio concentration, as any seasoned observer will attest, reveals a manager’s true convictions. When a position commands 27.4% of assets, even amidst market turbulence, it speaks volumes. Core Scientific generated $81.1 million in third-quarter revenue, with high-density colocation revenue rising to $15.0 million from $10.3 million a year earlier, even as total revenue declined year over year from $95.4 million. Gross profit improved to $3.9 million versus a loss last year, though the company still posted a $146.7 million net loss, largely tied to noncash fair value adjustments. Liquidity stood at $694.8 million, including $453.4 million in cash and $241.4 million in bitcoin. A reassuring figure, perhaps, though one cannot help but note the inherent volatility of the latter.

The bet here, it seems, is less about the fluctuating price of digital currencies and more about a strategic pivot. Management is converting facilities toward high-density colocation tied to AI workloads, and $196.4 million of capital expenditures were funded by CoreWeave under existing agreements. A commendable ambition, though one wonders if they are chasing a mirage.

Compared with the more modest allocations to GNL or SATS, this holding dominates the risk profile. Long-term investors should watch colocation revenue growth, capital intensity, and the pending CoreWeave transaction. If execution sticks, this becomes infrastructure with optionality. If not, concentration cuts both ways. One might observe, with a touch of cynical amusement, that fortune favours the bold, but rarely the foolish.

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2026-02-14 19:24