Bitcoin miner Core Scientific ditched a huge sum of Bitcoin to pivot towards AI data centers, after posting a huge loss for the first quarter of 2026, per the official earnings release from Thursday.
Core Scientific has sold 2,385 Bitcoins for nearly $208.3 million in Q1 2026, as colocation revenue surpassed mining for the first time.
The funds collected from the sale of Bitcoin have been used to raise capital for expenditures as the firm exists completely from Bitcoin mining. Core Scientific’s moves are in tandem with larger market trends, with crypto miners facing a slump in profits after the 2024 Bitcoin halving and a fall in the prices of the OG-crypto.
Shares of the firm are currently trading down nearly 10 percent at $22.17, hinting at shareholder disappointment after a disappointing result and Bitcoin sale for the quarter.
Core Scientific swings to losses
The crypto miner reported a net loss of $347.2 million, compared to net income of $576.3 million in the first quarter of 2025. The loss comes amid a slump in Bitcoin mining activities, making the company move beyond its traditional Bitcoin mining roots and further into the rapidly expanding AI infrastructure sector.
The Austin-based firm also posted total revenue of $115.2 million, up from $79.5 million during the same quarter last year.
A major reason behind the revenue growth was the company’s AI colocation business, where it provides data center capacity, power, and infrastructure for artificial intelligence operations. Revenue from that segment surged to $77.5 million, compared with just $8.6 million in the first quarter of 2025, reflecting how quickly demand for AI computing infrastructure has grown.
Meanwhile, the company’s Bitcoin mining business moved in the opposite direction. Mining revenue dropped to $30.1 million from $67.2 million a year earlier, showing how the balance of the business is steadily changing.
Management acknowledged that bitcoin mining activity will continue to decline until 2026, with just one or two sites projected to be active by the end of the year. Billable colocation capacity is expected to exceed 450 megawatts by late summer, and 590 megawatts by early 2027.
CoreWeave partnership drives main revenue
The latest results mark the first time AI colocation has become Core Scientific’s largest revenue source, overtaking mining operations that once defined the company. CEO Adam Sullivan described the quarter as “a meaningful milestone,” saying it highlighted the company’s ongoing transition toward becoming a more AI-focused infrastructure provider.
The shift is anchored by a 590 megawatt deal with CoreWeave that is required to earn $10.2 billion over 12 years. In April, a Core Scientific affiliate sold $3.3 billion in senior secured notes to fund the expansion.
Management outlined a “lockbox” arrangement that directs project earnings to debt commitments before releasing any extra revenues.
The net loss of $347.2 million was almost completely due to non-cash impairment charges on mining assets of $266.5 million and a warrant loss of $30.8 million. Adjusted EBITDA was $4.4 million, up from minus $6.1 million the previous year.