Core Scientific shares slip as Q1 loss offsets revenue growth

Core Scientific reported $115.2 million in first-quarter revenue, up from $79.5 million a year earlier. 

Summary

• Core Scientific revenue rose to $115.2 million, driven mainly by fast-growing colocation business demand.
• The miner posted a $347.2 million net loss due largely to non-cash impairment charges.
• Self-mining revenue fell sharply as Bitcoin output dropped and the firm shifted toward AI infrastructure.

Gross profit also rose to $30.1 million from $8.2 million in the same period last year. The growth came mainly from colocation revenue, which reached $77.5 million. That was up from $8.6 million in Q1 2025 as the company delivered more billable power capacity to customers.

The company’s Bitcoin self-mining revenue moved in the opposite direction. It fell to $30.1 million from $67.2 million due to a 45% drop in Bitcoin mined and an 18% decline in the average Bitcoin price.

Net loss weighs on stock

Core Scientific posted a $347.2 million net loss in Q1, compared with net income of $576.3 million a year earlier. The loss included $266.5 million in non-cash impairment charges and a $30.8 million non-cash loss tied to warrants and contingent value rights.

MarketBeat reported that Core Scientific posted an EPS loss of $1.06, missing analyst estimates, while revenue came in slightly below expectations at about $115.2 million. Shares had closed higher at $24.63 on Wednesday before post-earnings pressure returned.

CEO Adam Sullivan said, “Core Scientific is differentiated by our ability to combine capital readiness with speed to delivery.” He added that the company was investing ahead of contracts and moving development across several sites.

AI data center shift accelerates

Core Scientific has been reducing its reliance on Bitcoin mining while expanding high-density colocation and AI infrastructure. Crypto.news reported in April that the company plans to convert its Pecos, Texas, mining site into an AI data center campus with up to 1.5 gigawatts of gross power capacity.

The company said about 1 gigawatt of that Pecos capacity could be available for leasing. It also plans to repurpose about 300 megawatts of power once used for Bitcoin mining into data center operations for AI workloads.

Core Scientific also announced a deal to acquire Oklahoma-based Polaris DS for about $421 million. MarketBeat said the deal would add land, substation access, and up to 440 megawatts of gross power near the Muskogee campus.

Mining sector follows AI demand

Core Scientific’s move fits a wider trend across public Bitcoin miners. As previously reported, MARA Holdings, Riot Platforms, Hut 8, and other miners have been allocating capital toward AI-linked data centers to seek steadier revenue from compute demand.

Hut 8 also announced a 15-year AI data center lease at its Beacon Point campus in Texas. As Crypto.news reported, the base contract is valued at $9.8 billion and covers 352 megawatts of IT capacity.

Core Scientific’s Q1 report shows that the transition is still costly. Revenue is rising, but impairment charges, lower self-mining income, and heavy expansion costs remain central issues for investors.