Core Scientific (CORZ) released its Q1 2026 earnings on May 6, revealing a stark contrast between its mining business and emerging AI data center hosting operation. The company posted a net loss of $347.2 million on total revenue of $115.2 million.
The loss was driven primarily by $266.5 million in impairment on property, plant and equipment, along with $30.8 million in fair value changes of warrants and contingent value rights. During the quarter, Core Scientific liquidated 2,385 bitcoins, generating $208.3 million in proceeds used for capital expenditures and general cash needs. Separately, the firm completed a $3.3 billion offering of senior secured notes at 7.75% interest, maturing in 2031, earmarked for building out AI data center capacity.
AI hosting revenue skyrockets 9x while mining revenue halves
The company's AI data center hosting business turned in standout results: revenue surged to $77.5 million from just $8.6 million a year earlier, a gain of more than 9x. With 243 megawatts under billing, annualized hosting revenue now runs at roughly $350 million, making it Core Scientific's top revenue line.
Meanwhile, cryptocurrency mining revenue fell to $30.1 million from $67.2 million, nearly cut in half, as the company's bitcoin production dropped 45% and the average BTC price declined 18%. Core Scientific ended the quarter with about $1.04 billion in liquidity, including $1.01 billion in cash and $37.3 million in bitcoin. Shares slid more than 9% in after-hours trading following the report.