TLDR: Core Scientific, a digital infrastructure and asset mining company, announced its Q2 2025 financial results, reporting a substantial decrease in total revenue to $78.6 million, down from $141.1 million in the prior year. This decline was primarily driven by a 62% drop in Bitcoin mined. The company also reported a net loss of $936.8 million, largely due to non-cash adjustments. Despite these challenges, Core Scientific saw growth in its colocation revenue and is progressing with an all-stock merger with CoreWeave, aimed at enhancing its capabilities in high-density computing and AI-related workloads.
AUSTIN, Texas – Core Scientific, Inc. (NASDAQ: CORZ), a leading provider of digital infrastructure for high-density colocation services and digital asset mining, has released its financial results for the fiscal second quarter of 2025, revealing a significant downturn in revenue and profitability. The company reported total revenue of $78.6 million for the quarter, a substantial decrease from $141.1 million in the second quarter of 2024.
The primary driver of this revenue decline was a 62% reduction in Bitcoin mined, which led to digital asset self-mining revenue falling to $62.4 million from $110.7 million in the prior-year period. This was only partially offset by a 50% increase in the average Bitcoin price during the period. Digital asset hosted mining revenue also saw a sharp decrease, dropping to $5.6 million from $24.8 million, a result of Core Scientific’s strategic shift towards its colocation business.
Conversely, the company’s colocation revenue, formerly known as ‘HPC hosting,’ demonstrated positive growth, increasing to $10.6 million from $5.5 million in Q2 2024. This growth is attributed to the expansion of colocation operations into Denton, Texas, during the second quarter of 2025. Notably, this segment includes data center hosting for client computing workloads, including AI training and inference.
Core Scientific’s financial performance also reflected a sharp decline in gross profit, which stood at $5.0 million compared to $38.8 million in the same period last year, with gross margins collapsing to 6% due to pressures from legacy Bitcoin mining. The company reported a net loss of $936.8 million, a significant increase from an $804.9 million loss in the prior-year period. This substantial loss was primarily due to non-cash fair value adjustments totaling $910.0 million, related to warrants and contingent value rights, driven by an increase in the company’s stock price. Adjusted EBITDA also decreased to $21.5 million from $46.0 million year-over-year.
In terms of liquidity, Core Scientific maintained a position of $754.1 million at the end of Q2 2025, comprising $581.3 million in cash and cash equivalents and $172.8 million in digital assets. Capital expenditures for the quarter amounted to $121.3 million, with $90.3 million funded by CoreWeave under existing contractual agreements, and an additional $31.0 million invested in new site development at non-CoreWeave locations.
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A significant strategic development for Core Scientific is the pending all-stock merger with CoreWeave, announced on July 7, 2025. This transaction is anticipated to significantly enhance Core Scientific’s capabilities in high-density computing and artificial intelligence-related workloads. The merger is currently awaiting stockholder and regulatory approvals.
