Core Scientific, a large company that mines bitcoin, experienced a 7% decrease in its stock price Wednesday evening after announcing a significant net loss for the first three months of the year. This happened despite a considerable increase in overall revenue, largely due to growth in its data center hosting services.
In the first quarter of 2026, the Austin-based company reported revenue of $115.2 million, a significant increase from $79.5 million during the same quarter last year. Their gross profit also grew substantially, rising from $8.2 million to $30.1 million year-over-year, according to their recent earnings report.
The company reported a net loss of $347.2 million for the quarter, a significant drop from the $576.3 million profit it earned in the first quarter of 2025. This loss was mainly due to $266.5 million in impairment charges – accounting losses that don’t involve actual cash – and a $30.8 million loss related to changes in the value of warrants and rights to future stock.
However, our adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $4.4 million, a significant increase from the $6.1 million loss reported in the same period last year.
Colocation revenue soars as mining income falls
Our colocation business really drove growth this quarter, bringing in $77.5 million in revenue, a significant increase from $8.6 million last year. This jump is due to our focus on providing powerful computing infrastructure for artificial intelligence and demanding computing tasks.
However, revenue from Core Scientific’s own digital asset mining fell to $30.1 million in the first quarter of 2025, down from $67.2 million. The company explained this decrease was mainly due to mining 45% less bitcoin, a result of focusing more on providing hosting services for others and a 18% drop in the average price of bitcoin.
The mining operation is currently contracted for 243 megawatts of power, which generates roughly $350 million in yearly colocation revenue based on standard accounting principles.
According to CEO Adam Sullivan, Core Scientific stands out because it’s prepared financially and can deliver quickly. The company is investing in projects even before contracts are signed, speeding up completion dates, and making progress at various locations. This ability to execute efficiently is leading to more customer conversations and proving the worth of their powerful computing platform.
Capex and liquidity position
We invested a total of $389.2 million in capital projects this quarter. Of that amount, $129.9 million came from CoreWeave as part of agreements we have to house our equipment in their facilities with Core Scientific.
As of March 31, 2026, my analysis shows the company has a strong liquidity position of $1.04 billion. This breaks down to $1.01 billion in cash and traditional equivalents, plus $37.3 million held in bitcoin.
Stock reaction and recent acquisition
As an analyst, I’ve been following Core Scientific (CORZ) closely, and today saw a significant jump in their stock price – up 11% to close at $24.63. This was largely driven by their announcement of a $421 million deal to buy Polaris DS LLC, a bitcoin mining company based in Oklahoma. What’s particularly interesting about this acquisition is that it will give Core Scientific access to a substantial 440 megawatts of power through a contract with Oklahoma Gas & Electric, which is crucial for their mining operations.
Despite initial gains, the stock price dropped significantly after the earnings report. After-hours trading saw a decline of around 7.2–7.6%, and as of Thursday morning at approximately 6:27 AM EDT, CORZ was still down 7.43%, trading at $22.80.
Aggressive expansion across Texas and Oklahoma
Core Scientific is rapidly growing its data center capacity to meet the increasing need for AI computing power. They’ve recently increased their total potential power capacity to 4.5 gigawatts, with plans to add 1.5 gigawatts at each of their locations in Muskogee, Oklahoma, and Pecos, Texas.
The company finalized the purchase of land and power resources in Hunt County, Texas, for about $233 million. This investment is projected to enable around 430 megawatts of power generation and has been approved for connection to the ERCOT grid.
In addition to mining bitcoin, Core Scientific is expanding its services to provide hosting for artificial intelligence tasks at its data centers in Texas, Georgia, North Carolina, and Oklahoma.
Capital structure strengthened
Core Scientific recently completed a $3.3 billion financing deal, issuing senior secured notes that mature in 2031. This funding will be used to support the development of its data centers and to pay off existing loans.
The company received $1 billion in loans from JPMorgan and Morgan Stanley, which it will use to grow its business.
Core Scientific will be presenting at two investor conferences in May 2026: the TD Cowen 54th Annual Technology, Media & Telecom Conference on May 28th, and the B. Riley Annual Investor Conference on May 20th.
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2026-05-07 14:14