Bitcoin Miner Core Scientific Shares Crash Over 6% as Q1 Net Loss Hits $347M

The company’s colocation business generated strong growth, while self-mining revenue declined due to lower Bitcoin production and weaker average Bitcoin prices. Core Scientific’s stock initially rose after announcing a $421 million acquisition of Polaris DS LLC, but later fell around 7% in after-hours trading following the earnings release.

Core Scientific Hit With $347M Loss

Shares of Core Scientific fell sharply in after-hours trading after the Bitcoin mining company reported a net loss for the first quarter of 2026, despite posting strong growth in both revenue and gross profit.

According to the company’s latest earnings report, Core Scientific generated $115.2 million in total revenue during the quarter, which was a big increase from the $79.5 million recorded during the same period in 2025. Gross profit also improved considerably after rising to $30.1 million compared to just $8.2 million a year earlier. The revenue growth was largely driven by the company’s expanding colocation business, which produced approximately $77.5 million in revenue during the quarter.

Part of Core Scientific’s Q1 2026 results

While the colocation division showed strong momentum, Core Scientific’s self-mining business experienced a big decline. Revenue from self-mining dropped to $30.1 million, down from $67.2 million in Q1 2025.

The company explained that the decrease was mainly due to a 45% reduction in Bitcoin mined during the quarter, which was tied to its strategic pivot toward colocation services as well as an 18% decline in the average Bitcoin price over the period.

Despite the stronger operational performance in several areas, Core Scientific ultimately reported a net loss of $347.2 million for the quarter. This was a sharp reversal from the $576.3 million net income it posted during the same period last year. The company attributed the loss primarily to $266.5 million in non-cash impairment charges, along with an additional $30.8 million non-cash loss related to changes in the fair value of warrants and contingent value rights.

CEO Adam Sullivan explained that the company is still heavily focused on infrastructure expansion and future growth opportunities. He stated that Core Scientific is investing aggressively to accelerate development timelines across multiple sites while preparing capacity ahead of customer contracts.

The market reaction was mixed throughout the trading session. Core Scientific’s stock initially surged around 11% during regular trading hours after the company announced a $421 million acquisition deal involving Oklahoma-based Bitcoin miner Polaris DS LLC. The acquisition is expected to provide Core Scientific with access to 440 megawatts of contracted power through Oklahoma Gas & Electric, strengthening the company’s long-term infrastructure capabilities.

Core Scientific stock price over the past 24 hours (Source: Google Finance)

However, sentiment shifted after the earnings release, with shares dropping roughly 7% in after-hours trading.