Core Scientific Generated $208m From Selling Bitcoin

Core Scientific ($CORZ) raised $208.3 million in the first quarter of 2026 by selling its $BTC holdings, using the proceeds to accelerate a wholesale transition from cryptocurrency mining into artificial intelligence and high-performance computing (HPC) infrastructure.

AI Colocation Becomes the Dominant Revenue Line

The strategic pivot is already reshaping the company's financials. Colocation revenue for AI data centers surged to $77.5 million in Q1, making it the company's largest business line. That shift reflects a deliberate wind-down of $BTC mining: management expects mining activity to continue declining through 2026, with only one or two sites remaining operational by year-end.

Core Scientific's 10-Q filing noted that one colocation customer generated 67% of total revenue in the first quarter, up from 11% a year earlier, underscoring the company's heavy reliance on its anchor tenant. The company also closed a $3.3 billion project bond at 7.75% interest, generating approximately $2.9 billion in net proceeds to fund expansion across multiple sites.

CoreWeave Partnership Anchors Long-Term Revenue Outlook

Core Scientific's first high-density colocation contract with CoreWeave was later expanded to 590 MW of leased customer power capacity across six sites, with a February 2025 expansion lifting projected revenue to $10.2 billion over 12-year terms. Management has raised its gross profit target for that contract: the cash gross profit range for the CoreWeave agreement was increased to 80% to 85%, reflecting better visibility into actual operating costs.

The company's billable capacity is expected to surpass 450 megawatts by late summer and reach the full 590 megawatts by early 2027 as execution of the CoreWeave contract advances. Beyond that, Core Scientific outlined a total leasable customer power pipeline of approximately 3.0 gigawatts, anchored by the 12-year CoreWeave agreement.

The company, which emerged from Chapter 11 bankruptcy in 2024, ended March with $1.04 billion in liquidity, including $1.01 billion in cash and $37.3 million in $BTC, signalling that the balance sheet has been substantially repositioned toward its new identity as a digital infrastructure provider.

Sources:
CoinDesk: Core Scientific Sold $208 Million of Bitcoin in Q1 as AI Pivot Continues
Motley Fool: Core Scientific (CORZ) Q1 2026 Earnings Call Transcript
Investing.com: Core Scientific Q1 FY2026 Slides