Q1 Financial Results
Bitcoin miner Core Scientific posted higher revenue but swung to a significant net loss in the first quarter of 2026. The company reported $115.2 million in total revenue, up from $79.5 million in Q1 2025. Gross profit also improved to $30.1 million from $8.2 million last year.
However, Core Scientific recorded a net loss of $347.2 million, compared to a net income of $576.3 million in the same period last year.
Strong Colocation Growth vs Self-Mining Decline
Colocation revenue jumped sharply to $77.5 million in Q1, a massive increase from just $8.6 million a year ago. In contrast, self-mining revenue dropped to $30.1 million from $67.2 million.
The decline in self-mining was mainly due to a 45% drop in Bitcoin mined and an 18% lower average Bitcoin price, as the company strategically shifts focus toward its colocation business.
Reasons Behind the Net Loss
The large net loss was primarily driven by non-cash charges, including $266.5 million in impairment costs and a $30.8 million loss from changes in fair value of warrants and contingent value rights.
Despite the loss, CEO Adam Sullivan highlighted the company’s strong execution, stating they are investing ahead of contracts and accelerating development across multiple sites.
Expansion Plans and Market Reaction
Core Scientific is rapidly expanding its power capacity to 4.5 GW and recently acquired land and power in Texas for $233 million to support 430 MW. The company is also pushing into AI infrastructure and high-performance computing alongside Bitcoin mining.
Shares fell around 7% in after-hours trading following the earnings release and were down about 6.25% in pre-market on Thursday.
