Core Scientific is taking an aggressive path that sets it apart from most institutional Bitcoin holders: liquidating nearly its entire BTC stash to fund a pivot into AI data centers. The January sale reduced its holdings from 2,537 BTC at end-2025 to roughly 630 BTC, with further sales continuing through the first quarter of 2026 until reserves are exhausted.
From 2,537 to Near Zero: The Liquidation Roadmap
Core Scientific's management does not view its Bitcoin reserve as a core asset, calling it a "byproduct of mining operations." In an official statement, they explained that funding $10 billion in contracted AI infrastructure demand by selling those reserves was an easy call. The company is partnering with high-density computing specialist CoreWeave to convert existing mining sites into AI-ready facilities, targeting 1.5 gigawatts of rentable energy capacity by 2028, all dedicated to AI workloads.
Crossroads With MicroStrategy
Over the same period, Michael Saylor's MicroStrategy added 3,015 BTC to its balance sheet. The two firms are both high-profile corporate Bitcoin holders, yet their strategies could not be more different: one buys the dip, the other cashes out to build GPU clusters. This divergence in institutional Bitcoin strategy is especially stark during the current transition phase.
Revenue Plunges 40%: Halving and Hashrate Squeeze Margins
Core Scientific's mining revenue dropped 40% year-over-year, leading to a loss of $0.42 per share in Q4 2025. The most recent Bitcoin halving and a rising global hash rate have compressed margins across the industry. Bitcoin's dip below $126,000 added operational pressure. These headwinds pushed the miner to abandon shrinking mining profits for the fast-growing AI sector.
The $10 Billion AI Bet: Data Centers as New Growth Engine
Core Scientific estimates $10 billion in contracted revenue potential from its AI data center pivot. The move mirrors broader industry trends: Riot Platforms is building new sites with AMD, and MARA Holdings has started selling Bitcoin to fund AI investments—though MARA takes a more measured "as-needed" approach, while Riot opts for equity issuance. Miners increasingly reroute energy resources toward AI, but the routes vary.
January Dump of 1,900 BTC: One Piece of the Sell-Side Puzzle
Core Scientific offloaded 1,900 BTC in January at an average price of roughly $92,000 per coin. While not a market-moving event by itself, it added to cumulative sell-side pressure from institutional holders. That month, Bitcoin's price fell 10.1%, marking one of the weakest stretches in its recent decline. Isolating Core Scientific's direct impact is difficult, but the sale contributed to the broader supply-side forces shaping the market.