0001628280-26-031396
SEC filingRevenue grew 45% to $115.2M but net loss widened to $347.2M on $266.5M impairment; colocation revenue surged to $77.5M.
For the three months ended March 31, 2026, total revenue increased to $115.2 million from $79.5 million in the prior year, a 45% rise. The growth was driven by a surge in colocation revenue, which reached $77.5 million (up from $8.6 million) as the company added billable customer power capacity at its Denton, Texas and Marble, North Carolina data centers. Digital asset self-mining revenue declined to $30.1 million from $67.2 million, reflecting lower bitcoin production and lower average realized bitcoin prices. Hosted mining revenue grew to $7.6 million from $3.8 million.
Gross profit improved to $30.1 million from $8.2 million, with gross margin expanding to 26.1% from 10.3%, primarily due to the higher-margin colocation segment. However, operating loss widened to $310.4 million from $47.0 million, driven by $266.5 million in non-cash impairment charges on mining-related property, plant and equipment, as well as a $30.8 million loss from changes in fair value of warrants and contingent value rights (compared to a $621.5 million gain in the prior year). Net loss was $347.2 million versus net income of $576.3 million in the prior period.
Adjusted EBITDA, a non-GAAP measure, improved to $4.4 million from $(6.1) million, signaling underlying operational progress despite the large non-cash charges.
Colocation became the dominant segment, contributing 67% of total revenue compared to 11% a year ago. Its gross margin jumped to 57% from 5%, reflecting the scalability of the high-density colocation model. The segment's revenue growth was fueled by capacity additions at Denton and Marble, with billable customer power capacity reaching 225 MW as of March 31, 2026, up from 120 MW at year-end 2025.
Digital Asset Self-Mining faced headwinds: revenue fell 55%, and gross margin turned negative at -57%, compared to 9% in the prior year. The decline was attributed to lower bitcoin production (due to reduced hash rate and network difficulty) and lower realized prices. The company also recognized a $266.5 million impairment on mining equipment and infrastructure, reflecting deteriorated mining economics.
Digital Asset Hosted Mining grew modestly, with revenue up 101% and gross margin slightly down to 43% from 46%. The growth came from new customer contracts.
Management emphasized the strategic transition toward high-density colocation services, which provide stable, long-term revenue streams with less exposure to bitcoin price volatility. As of March 31, 2026, the company had 590 MW of leased customer power capacity (unchanged from year-end) and 685 MW of unleased capacity, providing a pipeline for future growth. The company expects to continue converting its remaining data centers and is actively pursuing new sites.
Significant capital expenditures are anticipated: $389.2 million was spent in Q1 2026 on colocation expansion, and contractual commitments totaled $1.47 billion as of March 31. The company’s liquidity position was strengthened by a $1.0 billion term loan facility (subsequently refinanced with $3.3 billion of senior secured notes due 2031). Cash and cash equivalents stood at $1,005.1 million as of March 31, 2026.
Management believes available liquidity will be sufficient for at least the next twelve months, but the pace of conversion and customer deployments will influence timing of revenue and cash flows. Tariffs and power costs remain key monitoring areas.
As of March 31, 2026, Core Scientific held $1.0 billion in cash and equivalents (up from $311 million at year-end 2025), primarily from the new term loan. Restricted cash totaled $140.8 million. Total debt stood at $2.06 billion, including $1.0 billion of the new term loan (current portion), $460 million of 3% convertible notes due 2029, and $625 million of zero-coupon convertible notes due 2031. Stockholders' deficit widened to $(1.31) billion due to a $347 million net loss and a $266.5 million impairment charge.
The company reported $1.47 billion in outstanding purchase and construction commitments, substantially all expected within 12 months. These include infrastructure development, power utility deposits, equipment procurement, and labor for existing customer conversions and new greenfield sites. Of this, $434 million will be passed through to a customer. Additionally, operating lease commitments total $132.8 million (undiscounted), with weighted-average remaining lease term of 7.3 years.
No share repurchases or dividends were disclosed. The company completed a $1.0 billion term loan facility in March 2026 (364-day maturity), later refinanced in April 2026 with $3.3 billion of 7.75% senior secured notes due 2031. Capital expenditures (property, plant, and equipment purchases) were $389.2 million in Q1 2026. The company also exercised nominal warrants, resulting in $0.1 million cash proceeds.
Core Scientific operates three segments: Colocation (AI/HPC high-density colocation), Digital Asset Self-Mining (bitcoin mining for own account), and Digital Asset Hosted Mining (hosting third-party miners). Colocation revenue surged 804% YoY to $77.5 million, with gross margin improving from 5% to 57%, reflecting the ramp of CoreWeave contracts. Digital Asset Self-Mining revenue declined 55% to $30.1 million as the company repurposes mining sites, and recorded a negative gross margin (-57%) due to a $266.5 million impairment and lower bitcoin prices. Hosted Mining revenue grew 101% to $7.6 million, with stable gross margin around 43%. All revenue is U.S.-generated. Concentrations: one colocation customer contributed 67% of total revenue; one self-mining pool operator contributed 26%.