Core Scientific shares slip after bitcoin miner swings to Q1 net loss despite higher revenue

Bitcoin miner Core Scientific (CORZ) saw its shares fall 7% in after-hours trading on Wednesday after the firm reported a first-quarter net loss despite higher revenue and gross profit.

The company reported $115.2 million in total revenue in Q1 2026, up from $79.5 million in the same period last year, according to its latest earnings report. Its gross profit reached $30.1 million, compared to $8.2 million in Q1 2025.

Among its revenue streams, colocation businesses generated roughly $77.5 million, up from $8.6 million in the same period last year. Its self-mining revenue fell to $30.1 million from $67.2 million in Q1 2025.

Core Scientific said the decline in self-mining revenue was driven by the 45% decrease in bitcoin mined "primarily due to the continued strategic shift to our colocation business and the 18% decrease in the average bitcoin price."

Impairment-driven net losses

Despite revenue growth, the firm posted a net loss of $347.2 million in the quarter, compared to a net income of $576.3 million a year ago.

Core Scientific said the loss was primarily driven by $266.5 million in non-cash impairment charges and a $30.8 million non-cash loss tied to changes in the fair value of warrants and contingent value rights.

"Core Scientific is differentiated by our ability to combine capital readiness with speed to delivery," CEO Adam Sullivan said in the report. "We are investing ahead of contracts, advancing ready-for-service dates and moving development forward across multiple sites."

Core Scientific's shares traded down 7% in after-hours trading on May 6 following the release of the firm's first-quarter earnings, according to TradingView.

The stock had gained 11% to close at $24.63 during the regular session after the company earlier announced a $421 million deal to acquire Oklahoma-based bitcoin miner Polaris DS LLC. The acquisition is expected to give Core access to 440 megawatts of contracted power through Oklahoma Gas & Electric.

CORZ remains down 6.25% in pre-market trading on Thursday, according to The Block's Core Scientific price page.

Campus expansion

Core Scientific recently expanded its total gross power capacity pipeline to 4.5 GW, including planned 1.5 GW expansions at campuses in Muskogee, Oklahoma, and Pecos, Texas.

The company said it has completed the acquisition of land and power in Texas for about $233 million, which is expected to support roughly 430 MW of gross power capacity.

Core Scientific has increasingly focused on AI infrastructure and high-performance computing as it moves beyond its bitcoin mining business. The company has been expanding mining sites across Texas, Georgia, North Carolina, and Oklahoma to support colocation services for AI workloads.

Earlier this year, the firm announced a $3.3 billion private debt offering as well as loans totaling $1 billion from JPMorgan and Morgan Stanley.