Core Scientific reported a $347 million loss for the quarter, with its colocation business — primarily AI hosting — surpassing Bitcoin mining as the company's top revenue source. The firm mined just 279 BTC during the period, a 45% drop from the same quarter last year.
The colocation pivot
Core Scientific's colocation segment, which houses and powers high-performance computing gear for AI firms, brought in more revenue than its own mining operations for the first time. The shift marks a strategic turn for the company, which built its name as one of the largest publicly traded Bitcoin miners. Executives have increasingly framed the firm as an AI infrastructure provider, but the numbers show the transition is still early — and expensive.
Mining numbers slide
The 279 BTC mined is the lowest quarterly haul in recent memory for Core Scientific. Hashrate challenges, power costs, and the April 2024 halving have all squeezed production. The 45% year-over-year decline outpaces the network-wide reduction in mining rewards, suggesting the company faced operational headwinds beyond the halving. The company didn't break out mining revenue separately in the release.
The $347 million loss includes impairment charges on mining equipment and other write-downs, though the company didn't detail the exact composition. Bitcoin's price during the quarter hovered around $85,000 to $95,000, well below the highs of late 2025, which would have further pressured margins.
What the numbers say about the road ahead
Core Scientific's transformation into an AI infrastructure provider is underway, but the $347 million loss shows the transition isn't cheap. The company's next earnings report will show whether the colocation business can grow fast enough to offset the slide in mining revenue — and whether investors are willing to wait.
