Core Scientific Dumps Bitcoin for AI: $10B Deal Sparks Crypto

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Core Scientific Sells Its <a href="https://tech-oracle.com/btc-usd/">Bitcoin</a> to Fund AI Expansion

Key Takeaways

  • Core Scientific is exiting its Bitcoin treasury strategy, selling 1,900 BTC in January and planning to monetize nearly all remaining holdings to fund AI infrastructure.
  • The company is pivoting toward its $10B+ long-term hosting deal with CoreWeave, with AI colocation revenue already surging 268% year-over-year.
  • Q4 results disappointed on revenue and earnings, and an accounting issue added noise – but liquidity remains strong at around $530 million.

The company’s Bitcoin holdings are dwindling, currently at around 630 BTC, and leadership intends to sell off almost all of it. They have no plans to continue holding Bitcoin long-term.

The Exit Strategy, Spelled Out

Core Scientific announced in its fourth-quarter 2025 earnings report that it plans to sell almost all of its remaining Bitcoin throughout 2026. The company intends to use the money to fund the development of its artificial intelligence infrastructure, a plan that began when it partnered with CoreWeave for hosting services.

This multi-year contract is valued at over $10 billion and provides 590 megawatts of hosting capacity. As of the recent earnings call, more than half of this capacity – around 350 megawatts – was already live and working. Nearly 200 megawatts are currently being billed to customers. The company expects to fully deliver the entire 590 megawatts by early 2027, and once complete, the contract is forecast to bring in about $850 million in revenue each year.

Core Scientific is growing its operations with a new 265-acre site in Hunt County, Texas. This location is expected to provide an additional 430 megawatts of power, becoming fully operational between 2027 and 2029. The company aims to have a total of 1.5 gigawatts of available capacity for lease by 2028.

Q4 Numbers: Revenue Miss, AI Surge

The Q4 2025 earnings report itself was a mixed bag that didn’t sit especially well with markets.

The company’s revenue was $79.8 million, significantly lower than the $122 million analysts predicted. Losses per share were also worse than expected, at $0.42 compared to the anticipated $0.08. As a result, the company’s stock price dropped between 4.5% and 5.4% in after-hours trading, also due to the announcement of an accounting mistake.

The company discovered an old error concerning its property and equipment, and it will be considered a significant weakness in its internal controls for the next year. However, company leaders emphasized that this error doesn’t affect its reported revenue or cash flow.

The reported net income of $216 million isn’t a true reflection of the company’s performance. This figure is largely due to a one-time, $330.3 million accounting gain, not actual business profits. When you remove this gain, the company’s core operating results appear much weaker.

One area where the company performed well was AI colocation, with revenue increasing by 268% compared to last year, reaching $31.3 million. This is a key part of the company’s overall strategy, and the growth is a positive sign.

Core Scientific ended 2025 with approximately $530 million in total liquidity.

Analysts Stay Bullish, Despite the Noise

Even though the company fell short of revenue expectations and had an issue with its financial reporting, analysts generally remain optimistic about its future. They currently predict the stock price could go anywhere from $23 to $34, with most estimating around $25. The recent disappointing results are largely seen as a temporary issue, with increased capacity from CoreWeave expected to significantly improve profits starting in 2026.

The stock’s price suggests investors are valuing its potential as an infrastructure play, not its connection to Bitcoin’s price or how much profit it makes from mining. It currently trades at about 121.74 times its earnings.

The Broader Trend

Core Scientific is making bold moves, but these are understandable given the current situation. After the recent Bitcoin halving, profit margins for miners have shrunk, leading several large companies to invest in data center infrastructure as a way to maintain consistent income.

In late 2025, Riot Platforms sold around $200 million worth of Bitcoin to invest in new areas, including a large data center in Corsicana, Texas. MARA Holdings is collaborating with Starwood to build out AI infrastructure, and currently has a low price-to-earnings ratio of 2.92. Iris Energy, now known as IREN to highlight its focus on AI, has secured a $9.7 billion contract with Microsoft for AI cloud services, receiving an initial prepayment of 20%. TeraWulf is running AI operations using energy sources they claim have a zero-carbon footprint.

CoinShares predicts a dramatic change for Bitcoin miners who use artificial intelligence. Currently, mining accounts for about 85% of their income, but this is expected to plummet to less than 20% by the end of 2026. This won’t be a slow decline; it’s a fundamental shift in how they earn money.

What Comes Next

Core Scientific’s future success depends on how well they carry out their plans. Specifically, whether they can build on time, connect to the power grid, and receive equipment as scheduled will decide if their expansion with CoreWeave goes smoothly or faces delays. Experts have already pointed out these potential challenges.

The trend is clear: people are selling Bitcoin, and data centers are being constructed. The key question now is whether these facilities will be completed quickly enough to support the current high price of Bitcoin.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

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2026-03-03 17:15