Core Scientific (CORZ) saw its shares tumble 7% in after-hours trading on May 6 after the bitcoin mining giant reported a significant first-quarter net loss, overshadowing a robust increase in total revenue. For Q1 2026, the firm reported $115.2 million in revenue, a 45% jump from $79.5 million in the same period last year. This growth was primarily fueled by a meteoric rise in colocation revenue, which surged to $77.5 million from just $8.6 million a year ago.
However, the bottom line told a different story. Core Scientific posted a net loss of $347.2 million, a stark reversal from the $576.3 million net income reported in Q1 2025. The company attributed this deficit primarily to $266.5 million in non-cash impairment charges and a $30.8 million loss related to the fair value of warrants. Meanwhile, self-mining revenue fell to $30.1 million as the company pivotally shifted resources toward AI infrastructure and high-performance computing (HPC).
CEO Adam Sullivan emphasized the firm’s “speed to delivery” as it expands its total gross power capacity pipeline to 4.5 GW. This aggressive expansion includes a recent $421 million deal to acquire Oklahoma-based Polaris DS LLC, adding 440 megawatts of capacity. Despite the net loss, the strategic transition into AI colocation remains the core focus, supported by recent billion-dollar loan facilities from JPMorgan and Morgan Stanley. Investors, however, appeared cautious, focusing on the immediate impairment-driven losses and the 45% drop in total bitcoin mined during the quarter.
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