CoinDesk
Core Scientific (CORZ) reported a $347.2 million first-quarter loss on revenue of $115.2 million, booking the result as the former bitcoin mining heavyweight sold 2,385 BTC for $208.3 million and wrote down $266.5 million of mining-related assets. The company also closed a $3.3 billion offering of 7.75% senior secured notes, with proceeds earmarked for data center development and to repay a $1 billion term loan facility.
The mix has flipped decisively. Colocation revenue for AI workloads rose to $77.5 million from $8.6 million a year earlier, overtaking crypto mining to become the firm's largest business line. Crypto mining revenue, by contrast, fell to $30.1 million from $67.2 million, a decline CORZ attributes to a 45% drop in bitcoin mined and an 18% drop in the average BTC price over the period. The company ended March with $1.04 billion of liquidity, including $1.01 billion of cash and just $37.3 million of bitcoin remaining on the balance sheet.
Why it matters
The bitcoin sales are not a one-off — they extend a pattern of miners liquidating BTC to fund AI data center buildouts, and the scale here is large enough to be a real incremental seller of bitcoin at the margin. Core Scientific's BTC treasury has shrunk from hundreds of millions a few quarters ago to a rounding-error $37.3 million, and the $1 billion bond-and-loan stack now underwrites power capacity that will be leased to AI tenants rather than used to mine blocks. The CoreWeave relationship crystallises the pivot: a February 2025 expansion lifted contracted infrastructure to roughly 590 MW across six sites, with projected revenue of $10.2 billion over 12-year terms — a contract size that makes the legacy mining business a footnote, not a thesis.
Market impact
The read for the bitcoin market is incremental supply pressure from a sector that was once a natural buyer: public miners have increasingly funded AI capex by selling BTC, and Core Scientific is now one of the cleanest examples of that rotation.
Frequently asked questions
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Why did Core Scientific sell $208 million of bitcoin in Q1?
The company said the bitcoin sales funded capital expenditures and other cash needs as it shifts from crypto mining to AI data center operations, a pattern other publicly listed miners have followed to finance AI buildouts.
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What is the size of the CoreWeave contract with Core Scientific?
A February 2025 expansion brought CoreWeave's contracted infrastructure with Core Scientific to roughly 590 MW across six sites, with projected revenue of $10.2 billion over 12-year terms.
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How much bitcoin does Core Scientific still hold on its balance sheet?
Core Scientific ended March with $37.3 million of bitcoin, down from hundreds of millions a few quarters ago, against $1.01 billion of cash and total liquidity of $1.04 billion.
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What were Core Scientific's Q1 revenue figures by segment?
Colocation revenue from AI workloads rose to $77.5 million from $8.6 million a year earlier, while crypto mining revenue fell to $30.1 million from $67.2 million, driven by a 45% drop in bitcoin mined and an 18% drop in average BTC price.
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What concentration risk did Core Scientific disclose in its 10-Q?
The 10-Q disclosed that one colocation customer generated 67% of total revenue in the first quarter, up from 11% a year earlier, leaving the AI-host thesis exposed to a single anchor tenant's renewal cycle.
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