Core Scientific reported a net loss of $347.2 million for the first quarter of 2024, revealing a sharp shift in its financial performance. According to the company’s earnings statement, this translates to a loss of $1.06 per share, a stark contrast from the $1.24 earnings per share in the same period last year.
About Core Scientific
Founded in the United States in 2017, Core Scientific was initially recognized as a leader in Bitcoin mining. Over time, it evolved into a major crypto technology company, expanding its focus into artificial intelligence and high-density colocation services, offering diversified digital infrastructure solutions.
A significant portion of Core Scientific’s Q1 losses came from non-cash asset impairment charges totaling $266.5 million and a $30.8 million loss due to changes in the fair value of derivatives and warrants. Despite these setbacks, total revenue rose from $79.5 million a year ago to $115.2 million, though it still missed analyst expectations of $120.2 million. Zacks Equity Research noted that quarterly revenues landed approximately 4.1% below projections.
Sharp decline in BTC mining income
Core Scientific’s Bitcoin mining income declined steeply in the first quarter. Revenue from mining with the company’s own assets dropped from $67.2 million last year to just $30.1 million. The number of newly mined Bitcoins fell 45% year-on-year, tallying only 279 coins. During the quarter, the company sold 2,385 BTC for a total of $208.3 million, with the proceeds directed towards planned capital expenditures and liquidity needs.
This downturn in mining revenue marked a pivotal transition towards high-density AI-related colocation services as the company’s main growth driver.
AI infrastructure and new contracts
The transformation of Core Scientific’s business model became clear as colocation revenues for Q1 soared to $77.5 million, a dramatic increase from $8.6 million the previous year. By the end of March, customer-billed power capacity reached 243 megawatts, positioning the company for a potential annualized colocation revenue of $350 million.
Growth in this segment accelerated further with new contracts secured with CoreWeave. The two companies signed a 12-year agreement in June 2024, in which Core Scientific committed to providing 200 megawatts of high-performance computing infrastructure. According to a February 2025 SEC filing, the total contract capacity expanded to 590 megawatts across six sites.
Stock performance and new expansion projects
Core Scientific’s shares have shown considerable volatility. Yahoo Finance data indicates that CORZ shares rose 19.6% over the past six months, closing Wednesday at $24.63. However, in premarket trading, the stock retreated by 7.43% to $22.80.
Additionally, the company announced its aim to expand the Muskogee campus in Oklahoma to a gross capacity of 1.5 gigawatts, with roughly 1 gigawatt available for lease. This capacity boost is supported by the acquisition of Polaris DS and the construction of a new 82.5 megawatt facility at the same campus.
The company’s transformation is evident not only in its financials but also in its investment and infrastructure strategies. Investors are increasingly focused on Core Scientific’s pivot from mining to artificial intelligence and computing infrastructure services.
Summarizing its financial report, Core Scientific stated, “Growth in our revenues now primarily comes from high-density colocation and AI infrastructure, while Bitcoin mining has declined compared to prior periods.”
Looking ahead, the share of AI-driven hosting and infrastructure is expected to further increase in Core Scientific’s overall revenue mix.
