Core Scientific Reveals $232M Texas Acquisition, Sold 2,385 Bitcoin to Fund AI Expansion

Core Scientific (NASDAQ: CORZ) is accelerating its expansion into AI infrastructure while continuing to wind down its legacy bitcoin mining operations, as the company disclosed a previously unreported Texas acquisition, sharply reduced its bitcoin holdings, and outlined plans to further scale its data center footprint.

The Austin-based company said in its first-quarter earnings release that revenue rose to $115.2 million from $79.5 million a year earlier, driven primarily by the scaling of its high-density colocation business tied to AI and high-performance computing workloads. Colocation revenue surged to $77.5 million from $8.6 million a year earlier, while self-mining revenue fell to $30.1 million from $67.2 million.

Executives on the earnings call described the quarter as a “meaningful milestone” in the company’s transition, with colocation revenue increasingly covering operating costs and expanding margins.

Chief Executive Adam Sullivan said Core Scientific has delivered 243 megawatts of billable capacity to CoreWeave and expects that figure to rise to 450 MW by the end of summer and 590 MW by early 2027.

Buried in the company’s quarterly filing was a previously undisclosed acquisition that further expands its Texas footprint.

Core Scientific said it acquired Telios Quinlan One LLC in May for $232.5 million, adding 260 acres and a 430 MW power agreement in Hunt County, Texas. The Telios acquisition comes alongside the company’s previously announced agreement to acquire Polaris DS LLC near its Muskogee, Oklahoma campus, a deal expected to add another 440 MW of power capacity. Combined with earlier expansion plans at Pecos, Texas, the company now sees a pathway toward 1.5 gigawatts of power capacity at both its Muskogee and Pecos campuses.

The company’s AI infrastructure buildout is increasingly being supported by large-scale financing tied to its CoreWeave contracts. In April, a Core Scientific subsidiary priced $3.3 billion of 7.75% senior secured notes backed by the long-term colocation agreements, among the largest financings tied to AI data center infrastructure developed by a former bitcoin miner.

Executives said on the earnings call that the financing uses a “lockbox” structure in which project revenue first services debt obligations before excess proceeds can be distributed to fund additional developments.

At the same time, Core Scientific said it would continue reducing its bitcoin mining operations over the course of the year.

Management said mining activity is expected to continue winding down, with only one or two sites expected to remain operational by year-end as more facilities are converted toward AI and HPC workloads.

The company also disclosed that it sold 2,385 bitcoin during the first quarter for approximately $208.3 million in proceeds, which were used to fund capital expenditures and other cash requirements. As of March 31, Core Scientific held 547 bitcoin remaining on its balance sheet, valued at roughly $37.3 million.

The company reported a first-quarter net loss of $347.2 million, compared with net income of $576.3 million a year earlier, largely driven by impairment charges and fair-value adjustments tied to warrants and contingent value rights.

Executives said demand from hyperscale customers remains active despite the expiration of an exclusivity period with one unnamed customer on the Pecos and Muskogee sites. Sullivan said three other hyperscalers entered discussions shortly after the exclusivity expired, prompting the company to shift toward milestone-based exclusivity arrangements for future negotiations.

The company ended the quarter with approximately $1.04 billion of liquidity, including $1.01 billion in cash and cash equivalents.