Core Scientific plans to sell virtually its entire Bitcoin (BTC) reserve this year, redirecting proceeds toward an accelerating buildout of AI data center capacity.
The disclosure came alongside a Q4 2025 earnings report that showed deepening tensions between the company's legacy mining business and its colocation ambitions.
In its annual report, the Austin, Texas-based firm stated it "currently expects to monetize substantially all" of its Bitcoin holdings in 2026, subject to market conditions, to cover capital expenditures and liquidity needs.
The company anticipates the majority of sales to occur in Q1 2026.
What Happened
Core Scientific held 2,537 BTC as of Dec. 31, 2025 - a near-tenfold increase from 256 BTC at end-2024 - with a carrying fair value of $222 million at an average price of $101,639 per coin.
The company had already sold 1,900 BTC in January for roughly $175 million, implying an average price near $92,000 per coin. That leaves under 700 BTC remaining in treasury.
Q4 revenue came in at $79.8 million, down from $94.9 million a year prior. Bitcoin mining revenue fell to $42.2 million from $79.9 million in Q4 2024 - a 47% year-over-year decline. Colocation revenue, meanwhile, jumped 268% to $31.3 million from $8.5 million.
Net income reached $216 million compared to a $291 million loss in Q4 2024, though adjusted EBITDA came in negative at $42.7 million.
CEO Adam Sullivan said on the earnings call that the company expects every megawatt in its portfolio to be dedicated to colocation within three years.
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Why It Matters
Core Scientific is not alone in the pivot. Cango recently sold 4,451 BTC to finance AI-related operations. Bitdeer dropped its BTC holdings to zero. Former miner Bitfarms rebranded as Keel Infrastructure, declaring it is "no longer a Bitcoin company."
The pattern across multiple companies points to deteriorating economics in Bitcoin mining - current BTC prices sit well below estimated production costs for many operators - combined with surging demand for AI compute infrastructure.
Core Scientific's commercial relationship with CoreWeave anchors its colocation thesis: a contract worth over $10 billion across 12 years covers 590 megawatts of hosting capacity.
The company is targeting a 1.5-gigawatt leasable pipeline by 2028. Total liquidity stood at $533.4 million at year-end, comprising $311.4 million in cash and $222 million in Bitcoin - the latter of which is now being drawn down.
CORZ shares are up roughly 62% over the past year at around $16.49.
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