Written by Ezra Reguerra, Staff Writer. Reviewed by Bryan O’Shea, Staff Editor.
Written by Ezra Reguerra, Staff Writer.
Reviewed by Bryan O’Shea, Staff Editor.
Core Scientific posts $347M loss as AI hosting overtakes Bitcoin mining
Latest NewsPublishedMay 7, 2026
Core Scientific mined 279 BTC in the quarter, down 45% from a year earlier, while its colocation business became its top revenue source.
Core Scientific (CORZ) reported a $347.2 million first-quarter net loss as its Bitcoin self-mining revenue fell sharply and high-density colocation became its largest revenue source.
In its earnings report published Wednesday, the company reported a net loss of $1.06 per diluted share for the quarter. A year earlier, Core Scientific reported diluted earnings of $1.24 per share.
Core Scientific stated the loss included $266.5 million in non-cash impairment charges and a $30.8 million non-cash loss from changes in the fair value of warrants and contingent value rights.
Revenue rose to $115.2 million from $79.5 million a year earlier, but fell short of analyst expectations. Zacks Equity Research stated analysts expected $120.2 million in revenue, with Core Scientific’s results coming in about 4.1% below expectations.
The results demonstrate Core Scientific’s transition from a Bitcoin miner into an AI infrastructure company, with high-density colocation now generating most of its revenue. The shift gives the company a larger business, but it also highlights how its legacy mining operations have weakened.
Bitcoin mining revenue falls
Core Scientific’s digital asset self-mining revenue fell to $30.1 million from $67.2 million a year earlier, with the company mining 279 Bitcoin (BTC) during the quarter, down 45% from the same period in 2025. as reported by its 10-Q filing, Core Scientific sold 2,385 Bitcoin during the quarter for $208.3 million to fund planned capital expenditures and other cash needs.
Core Scientific’s six-month price chart. Source: Yahoo Finance
Despite the weaker mining results, Core Scientific’s shares have gained over the past six months. Yahoo Finance data shows CORZ closed at $24.63 on Wednesday, up about 19.6% over six months, before falling 7.43% to $22.80 in pre-market trading at the time of writing.
In a separate announcement, Core Scientific stated it plans to scale its Muskogee, Oklahoma, campus to about 1.5 gigawatts of gross power, or about 1.0 gigawatt of leasable power, partly through the planned acquisition of Polaris DS. The company has also started construction on a second, unleased 82.5-megawatt building at the campus.
Related: Trump-linked American Bitcoin reports $82M Q1 loss, revenue miss
Core Scientific expands AI-linked colocation business
Core Scientific’s first-quarter growth came from high-density colocation rather than Bitcoin production, with the company’s mining revenue and Bitcoin output falling while its AI-linked hosting business generated most of its revenue.
The company stated its colocation revenue rose to $77.5 million in the first quarter from $8.6 million a year earlier, driven by additional billable customer power capacity delivered during the quarter.
The company stated it was billing for 243 megawatts of capacity as of March 31, representing about $350 million in average annualized colocation revenue.
The revenue shift follows a series of hosting agreements with CoreWeave. In June 2024, Core Scientific stated it signed 12-year contracts to deliver about 200 megawatts of infrastructure to host CoreWeave’s high-performance computing operations.
The companies later expanded the relationship. In an SEC filing in February 2025, the companies stated CoreWeave’s total contracted high-performance computing infrastructure with Core Scientific had increased to about 590 megawatts across six sites.
Magazine: Guide to the top and emerging global crypto hubs: Mid-2026
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