Core Scientific sold $208 million in bitcoin in Q1 2026 to fund its shift to AI data center operations, as colocation revenue surpassed mining for the first time.
Summary
- Core Scientific sold 2,385 BTC for $208.3 million in Q1 to fund capital expenditure tied to its AI pivot.
- Colocation revenue surged to $77.5 million while mining revenue fell to $30.1 million, making AI its largest business line.
- The company reported a $347.2 million net loss, driven primarily by $266.5 million in non-cash impairment charges on mining assets.
Core Scientific sold 2,385 bitcoin for $208.3 million in the first quarter of 2026, using the proceeds to fund capital expenditures as it completes its exit from bitcoin mining. The Austin-based firm reported total Q1 revenue of $115.2 million, up from $79.5 million a year earlier, driven by a surge in its AI colocation business.
Colocation revenue for AI data centers reached $77.5 million, up from $8.6 million in Q1 2025, while mining revenue fell to $30.1 million from $67.2 million. The shift makes AI colocation Core Scientific’s single largest revenue source for the first time. CEO Adam Sullivan described the quarter as “a meaningful milestone” in the company’s transition.
Why Core Scientific is walking away from mining
The pivot is anchored by a 590 megawatt contract with CoreWeave, projected to generate $10.2 billion over 12 years. In April, a Core Scientific subsidiary priced $3.3 billion in senior secured notes to finance the buildout. Management described a “lockbox” structure that routes project revenue to debt obligations before distributing excess proceeds.
The net loss of $347.2 million was driven almost entirely by $266.5 million in non-cash impairment charges on mining assets and a $30.8 million non-cash loss on warrants. Adjusted EBITDA came in at $4.4 million, compared to negative $6.1 million a year earlier.
What comes next for CORZ
Management confirmed bitcoin mining activity will continue winding down through 2026, with only one or two sites expected to remain operational by year-end. Billable colocation capacity is set to surpass 450 megawatts by late summer, reaching 590 megawatts by early 2027.
As crypto.news documented, a broad wave of miners including Bitfarms, IREN, and Cipher Digital are executing similar transitions, selling BTC reserves to finance data center infrastructure for AI clients. Core Scientific shares fell roughly 7% in after-hours trading following the earnings release, as investors weighed the absence of new colocation contracts against strong operational progress.
