Core Scientific Q1 net loss of $347M on $266M impairments

Core Scientific reported a first-quarter net loss of $347.2 million, driven by $266.5 million in non-cash impairment charges and a $30.8 million non-cash loss from changes in the fair value of warrants and contingent value rights. Total revenue for Q1 2026 rose to $115.2 million and gross profit increased to $30.1 million. The company’s shares fell about 7% in after-hours trading following the earnings release.

Colocation revenue was $77.5 million, up from $8.6 million in Q1 2025. Self-mining revenue declined to $30.1 million from $67.2 million a year earlier. The company attributed the drop in self-mining receipts to a 45% decrease in bitcoins mined as it shifts toward colocation services and to an 18% decline in the average bitcoin price.

Core Scientific reported net income of $576.3 million in Q1 2025. Management identified the change in reported results as primarily the result of the non-cash impairment charges and the warrant and contingent value rights fair-value loss, rather than cash operating shortfalls.

Earlier in the week the company announced a roughly $421 million agreement to acquire Oklahoma-based miner Polaris DS LLC. The deal is expected to provide access to about 440 megawatts of contracted power through Oklahoma Gas & Electric. The stock had risen about 11% during the regular session before the after-hours decline; it showed further weakness in pre-market trading the following day.

Core Scientific said its total gross power capacity pipeline has expanded to 4.5 gigawatts, including planned 1.5 GW expansions at campuses in Muskogee, Oklahoma, and Pecos, Texas. The company completed an acquisition of land and power in Texas for approximately $233 million that it expects to support roughly 430 megawatts of gross power capacity.

The company has been building colocation services aimed at AI infrastructure and high-performance computing and is expanding sites in Texas, Georgia, North Carolina and Oklahoma to serve those customers and other colocated workloads.

To fund growth, Core Scientific announced a $3.3 billion private debt offering and secured loans totaling $1 billion from JPMorgan and Morgan Stanley earlier this year.

In the earnings release, Adam Sullivan, chief executive, noted that the company combines “capital readiness with speed to delivery,” and said management is “investing ahead of contracts, advancing ready-for-service dates and moving development forward across multiple sites.”