Core Scientific, a major bitcoin miner, saw its shares drop 7% in pre-market trading on Wednesday after reporting a steep first-quarter net loss, even as total revenue climbed sharply on the back of its expanding colocation business.
The Austin-based company posted total revenue of $115.2 million for the first quarter of 2026, up from $79.5 million in the same period last year, according to its latest earnings report. Gross profit also rose to $30.1 million from $8.2 million a year earlier.
However, the firm swung to a net loss of $347.2 million for the quarter, compared to a net income of $576.3 million in Q1 2025. Core Scientific attributed the loss primarily to $266.5 million in non-cash impairment charges and a $30.8 million non-cash loss linked to changes in the fair value of warrants and contingent value rights.
Non-GAAP Adjusted EBITDA, however, came in at $4.4 million, a notable improvement from the negative $6.1 million reported in the prior year period.
Colocation revenue soars as mining income falls
The company’s colocation segment emerged as the standout performer for the quarter, generating $77.5 million in revenue compared to just $8.6 million a year ago. The jump reflects Core Scientific’s accelerated pivot toward high-density compute infrastructure for AI and high-performance computing workloads.
In contrast, digital asset self-mining revenue dropped to $30.1 million from $67.2 million in Q1 2025. Core Scientific said the decline was driven by a 45% decrease in bitcoin mined, “primarily due to the continued strategic shift to our colocation business and the 18% decrease in the average bitcoin price.”
The miner is currently billing for 243 MW of capacity, representing approximately $350 million in average annualized colocation GAAP revenue.
“Core Scientific is differentiated by our ability to combine capital readiness with speed to delivery,” CEO Adam Sullivan said in the report. “We are investing ahead of contracts, advancing ready-for-service dates and moving development forward across multiple sites. That execution capability is accelerating customer discussions and reinforcing the value of our high-density compute infrastructure platform.”
Capex and liquidity position
Capital expenditures for the quarter totaled $389.2 million, of which $129.9 million was funded by CoreWeave under existing colocation service agreements with Core Scientific.
The company ended the quarter with liquidity of $1.04 billion as of March 31, 2026, comprising $1.01 billion in cash and cash equivalents and $37.3 million in bitcoin holdings.
Stock reaction and recent acquisition
Shares of CORZ had gained 11% to close at $24.63 during Wednesday’s regular session, buoyed by the company’s earlier announcement of a $421 million deal to acquire Oklahoma-based bitcoin miner Polaris DS LLC. The acquisition is expected to give Core Scientific access to 440 megawatts of contracted power through Oklahoma Gas & Electric.
However, the post-market reaction wiped out those gains, with the stock falling roughly 7.2–7.6% in after-hours trading following the Q1 2026 earnings release. CORZ remained down 7.43% in pre-market trading on Thursday morning, quoted at $22.80 (as of approximately 6:27 AM EDT).
Aggressive expansion across Texas and Oklahoma
Core Scientific has been aggressively scaling its data center footprint to capitalize on surging demand for AI infrastructure. The company recently expanded its total gross power capacity pipeline to 4.5 GW, including planned 1.5 GW expansions at each of its campuses in Muskogee, Oklahoma, and Pecos, Texas.
The firm also closed on the acquisition of land and power in Hunt County, Texas, for approximately $233 million, a deal expected to support around 430 MW of gross power capacity with an approved ERCOT interconnection ramp schedule.
Beyond bitcoin mining, Core Scientific has been steadily building out colocation services to host AI workloads across its sites in Texas, Georgia, North Carolina, and Oklahoma.
Capital structure strengthened
On the financing front, Core Scientific announced the closing of a $3.3 billion offering of 7.75% senior secured notes due 2031, aimed at supporting its strategic data center development projects. The miner had earlier disclosed plans for the $3.3 billion private debt offering, with proceeds intended to help repay credit facility loans.
The company has also secured loans totaling $1 billion from JPMorgan and Morgan Stanley to fund its expansion plans.
Core Scientific is scheduled to participate in the TD Cowen 54th Annual Technology, Media & Telecom Conference on May 28, 2026, and the B. Riley Annual Investor Conference on May 20, 2026.
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