CORZ
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Revenue says “nice,” losses say “not so fast”
Core Scientific came out with first-quarter results after the bell, and the headline was a classic mixed bag. Revenue rose to $115.24 million, topping expectations and jumping from $79.53 million a year ago. But earnings didn’t keep up: the company lost 10 cents per share, wider than the 7-cent loss analysts were looking for.
The business is shifting gears
A lot of the story here is the company’s ongoing pivot. Colocation revenue surged to $77.5 million from just $8.6 million in the year-ago quarter, which suggests Core Scientific is leaning harder into powering customer workloads instead of relying on self-mining alone.
Meanwhile, digital asset self-mining revenue fell to $30.1 million from $67.2 million, helped along by a 45% drop in Bitcoin mined and an 18% drop in the average Bitcoin price. In other words: fewer coins, softer prices, smaller crypto-fueled engine.
Why investors care
Capex was chunky at $389.2 million, with $129.9 million funded by CoreWeave under existing colocation agreements. That’s a big signal that the company is still spending aggressively to build out capacity ahead of demand — which can be good if the contracts hold, but painful if execution slips.
Core Scientific also said it’s pushing ready-for-service dates and moving development forward across multiple sites. Translation: management is betting the race goes to the company that can bolt on infrastructure fastest, not necessarily the one with the prettiest quarterly margin.
Big picture: This was a revenue beat wrapped around a loss miss, which is usually enough to keep traders grumpy. For investors, the real question is whether Core Scientific’s colocation pivot can outrun the drag from lower mining output and heavy spending.