Bitcoin miners have faced significant challenges in the first quarter of 2026, reporting heightened net losses fueled by declining Bitcoin prices and various market pressures. Notable firms in the sector, including Hut 8, Core Scientific, American Bitcoin, Cipher Digital, and Riot Platforms, each disclosed substantial losses.
Hut 8 announced a net loss of $253.1 million for the quarter, a significant increase from the $134.3 million loss recorded in the same timeframe the previous year. The company indicated that the bulk of this loss stemmed from $295.7 million in primarily unrealized losses on its digital assets, up from $112.4 million last year.
American Bitcoin, co-founded by Eric Trump, reported an $81.8 million net loss for the quarter, a rise from the $59.5 million loss experienced in the previous quarter. The firm attributed much of its losses—totaling $117.18 million—to declines in its digital asset holdings. Despite these challenges, Matthew Prusak, President of American Bitcoin, noted that the company maintained a 52% gross margin in Bitcoin production, thanks to cost improvements that lower mining costs to approximately $36,200 per Bitcoin from about $46,900 in the prior quarter.
Core Scientific reported the most substantial loss in the sector, totaling $347.2 million. This figure was primarily driven by $266.5 million in non-cash impairment charges and a $30.8 million loss linked to changes in the fair value of warrants and contingent value rights. Cipher Digital faced a $114 million loss, influenced by the shutdown of its Black Pearl mining operation and an increase in interest expense associated with new debt facilities. Riot Platforms also struggled, experiencing a quarterly loss that exceeded $500 million.
Following the disclosure of these losses, mining stocks saw modest declines in after-hours trading. Hut 8’s stock had initially surged to $108.94, a 35% increase during regular trading, but then fell 1% in after-hours. Core Scientific’s shares rose 11% to $24.63 before declining 7.2% to $22.85 in after-hours trading. American Bitcoin experienced a slight rise of 1.6% to $1.25 in regular trading but subsequently lost those gains in pre-market activity.
The earnings reports were released alongside announcements of strategic pivots toward AI data center operations across the sector. Hut 8 shared plans for a substantial $9.8 billion lease agreement for its Beacon Point data center. Cipher Digital continued its expansion by signing a third hyperscale lease in Q1, while Riot Platforms reported $33.2 million in data center revenue. Core Scientific is also repurposing its mining facilities to support colocation services, reflecting a broader industry shift toward leveraging AI capabilities.
