In the first quarter, Core Scientific (CORZ) experienced a loss of $347.2 million despite an increase in revenue to $115.2 million. The company sold 2,385 bitcoins for $208.3 million and recorded a $266.5 million write-down on mining-related assets. These bitcoin sales were allocated towards capital expenditures and other cash requirements, continuing the trend among miners of selling BTC to fund AI data center ventures.
Core Scientific also completed a $3.3 billion offering of 7.75% senior secured notes. The proceeds are intended for data center development and to repay a $1 billion term loan facility, supporting its transition from cryptocurrency mining to AI-focused operations.
The company disclosed that colocation revenue surged to $77.5 million from $8.6 million the previous year, becoming Core Scientific’s largest business segment as per their earnings release.
Revenue from crypto mining dropped to $30.1 million from $67.2 million, attributed to a 45% decrease in bitcoin mined and an 18% reduction in average bitcoin price, CORZ reported.
As of March’s end, the company managed 10 data centers across seven U.S. states, providing approximately 1.9 GW of gross utility power capacity and 1.3 GW of leasable customer power capacity, according to its latest 10-Q filing.
Core Scientific noted in its filing that their initial high-density colocation contract with CoreWeave expanded to include 590 MW of leased customer power capacity.
A February 2025 expansion increased CoreWeave’s contracted infrastructure at Core Scientific to about 590 MW across six sites, raising anticipated revenue over a 12-year term to $10.2 billion.
Customer concentration remains high; the company’s 10-Q reported that one colocation client accounted for 67% of total first-quarter revenue, up from 11% a year prior.
Core Scientific’s pivot towards AI has garnered investor attention since CoreWeave’s unsuccessful attempt at a roughly $9 billion all-stock acquisition. Emerging from Chapter 11 in 2024, the company exemplifies bitcoin miners leveraging power access to generate contracted AI infrastructure revenue.
As of March’s conclusion, Core Scientific held $1.04 billion in liquidity, comprising $1.01 billion in cash and $37.3 million in bitcoins.