Core Scientific sold 2,385 BTC for $208.3 million in the first quarter of 2026, using the proceeds to fund capital expenditures tied to its move into AI data center operations. The Austin-based company reported $115.2 million in total revenue for the quarter, up from $79.5 million a year earlier. The biggest contributor was no longer bitcoin mining.
AI colocation became the largest revenue line
Revenue from AI data center colocation climbed to $77.5 million in Q1, compared with $8.6 million in the same period of 2025. Mining revenue moved the other way, falling from $67.2 million to $30.1 million. That made colocation Core Scientific’s largest single business line for the first time. CEO Adam Sullivan called the quarter “a meaningful milestone” in the company’s transition.
A 590-megawatt deal sits at the center of the shift
The company’s move away from mining is anchored by a 590-megawatt contract with CoreWeave, which Core Scientific expects will 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 tied to that project. Management also described a “lockbox” structure under which project revenue is directed first to debt obligations before any excess proceeds are distributed.
Impairment charges drove a $347.2 million net loss
Even with higher revenue, Core Scientific posted a $347.2 million net loss for the quarter. The company said the result was driven mainly by non-cash items, including $266.5 million in impairment charges on mining assets and a $30.8 million non-cash loss on warrants. Adjusted EBITDA came in at $4.4 million, compared with negative $6.1 million a year earlier.
Mining wind-down will continue through 2026
Management said bitcoin mining operations will keep shrinking through 2026, with only one or two sites expected to remain active by the end of the year. Billable colocation capacity is projected to exceed 450 megawatts by late summer and reach 590 megawatts by early 2027.
Core Scientific shares fell about 7% in after-hours trading after the earnings release. The reaction reflected investor attention on the lack of newly announced colocation contracts, even as the company reported strong progress on its operating transition. The source article also noted that miners including Bitfarms, IREN, and Cipher Digital are pursuing similar strategies, selling BTC reserves to fund data center infrastructure for AI customers.