Core Scientific (Core Scientific (CORZ)) reported its first-quarter results after Wednesday's closing bell, and the numbers were a mixed bag. The Bitcoin miner posted a loss of 10 cents per share, wider than the 7-cent loss analysts had expected, according to MarketDash data. But revenue told a different story: $115.24 million, beating the Street estimate of $111.25 million and up sharply from $79.53 million a year ago.
The big story here is Core Scientific's pivot from self-mining Bitcoin to colocation — essentially renting out its data center infrastructure to other companies. Colocation revenue soared to $77.5 million, up from just $8.6 million in the first quarter of 2025, driven by incremental billable customer power capacity delivered during the quarter. That's a massive shift, and it's reshaping the company's financial profile.
Meanwhile, digital asset self-mining revenue fell to $30.1 million from $67.2 million a year ago, reflecting a 45% drop in Bitcoin mined as the company allocates more resources to colocation, plus an 18% decline in the average Bitcoin price. Capital expenditures hit $389.2 million, with $129.9 million funded by CoreWeave (CoreWeave (CRWV)) under existing colocation service agreements.
CEO Adam Sullivan framed the strategy as a bet on speed and scale. "Core Scientific is differentiated by our ability to combine capital readiness with speed to delivery," he said. "We are investing ahead of contracts, advancing ready-for-service dates and moving development forward across multiple sites."
Investors weren't thrilled with the earnings miss. Core Scientific stock fell 9.61% to $22.26 in Wednesday's extended trading. The market is clearly focused on the bottom line, but the revenue growth and strategic shift suggest a company in transition — one that's betting big on becoming a data center landlord rather than just a Bitcoin miner.
