Core Scientific (CORZ) reported a loss of $347.2 million in the first quarter despite revenue increasing to $115.2 million as the former Bitcoin mining executive sold 2,385 Bitcoins for $208.3 million and wrote down $266.5 million in mining-related assets.
The company said the Bitcoin sales will be used to finance capital expenditures and other cash needs, extending the pattern of miners selling BTC to fund AI data centers.
The company also completed a $3.3 billion offering of 7.75% senior secured notes, the proceeds of which will be used for data center development and repayment of a $1 billion term loan facility. The bond sale was intended to fund the transition from cryptocurrency mining to AI-focused data center operations.
Colocation revenue rose to $77.5 million from $8.6 million a year earlier, making it Core Scientific’s largest business line, the company said in its earnings release.
CORZ said crypto mining revenue fell from $67.2 million to $30.1 million, driven by a 45% drop in Bitcoin mined and an 18% drop in the average Bitcoin price.
As of the end of March, the company operated 10 data centers across seven U.S. states, representing approximately 1.9GW of total commercial power capacity and 1.3GW of leasable customer power capacity, according to its most recent 10th quarter.
Core Scientific said in a filing that its initial high-density colocation agreement with CoreWeave was later expanded to 590MW of leased customer power capacity.
The February 2025 expansion brings CoreWeave’s contracted infrastructure with Core Scientific to approximately 590 MW across six sites, increasing its 12-year projected revenue to $10.2 billion.
Customer concentration remains high. Colocation customers generated 67% of total revenue in the first quarter, up from 11% in the same period last year, according to Core Scientific’s 10th quarter report.
Core Scientific’s AI efforts have come under intense investor scrutiny since Coreweave’s nearly $9 billion all-stock acquisition plan fell through. The company emerged from Chapter 11 in 2024 and has since become one of the leading examples of Bitcoin miners looking to turn access to electricity into revenue for AI infrastructure contracts.
At the end of March, it had $1.04 billion in liquidity, including $1.01 billion in cash and $37.3 million in Bitcoin.
