Core Scientific — Financial Results
Revenue Fell 38% as the Bitcoin-to-AI Transition Takes Hold
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $319.0M | $510.7M | -38% |
| Colocation Revenue | $65.4M | $24.4M | +169% |
| Self-Mining Revenue | $229.2M | $408.7M | -44% |
| Hosted Mining Revenue | $24.4M | $77.6M | -63% |
Core Scientific is deliberately dismantling its old business to build a new one. Bitcoin mining revenue collapsed as the company decommissioned miners to make room for AI data center customers. Colocation (renting power and space to AI computing customers) more than doubled, but from a small base — it still only represents 20% of total revenue. The company is essentially shrinking today to reposition for tomorrow.
Mining Economics Were Squeezed From Multiple Directions
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Bitcoin Mined | 2,276 | 6,595 | -65% |
| Average Bitcoin Price | $101,639 | $65,894 | +54% |
| Self-Mining Gross Margin | 5% | 23% | -18 pts |
The company mined 65% fewer bitcoin in 2025, a consequence of three overlapping pressures: a smaller active fleet, the April 2024 halving (an automatic industry-wide 50% cut to mining rewards), and rising network competition. A 54% rise in the bitcoin price softened the revenue blow, but margins on mining collapsed to just 5% — meaning almost every dollar earned from mining went straight back out the door in costs.
Colocation Is Gaining Real Margin, But Capacity Is Mostly Undeployed
| Capacity Metric | Megawatts |
|---|---|
| Total Leasable Customer Power | 920 MW |
| Leased (contracted) | 590 MW |
| Currently Billing | 120 MW |
The colocation segment achieved a 30% gross margin in 2025, up from 11% in 2024 — a meaningful improvement showing the business can be profitable at scale. However, of the 590 MW contracted with its key customer CoreWeave, only 120 MW is currently active and generating revenue. The remaining 470 MW represents future revenue that has not yet been switched on, making conversion speed the single most important near-term driver of financial results.
A Proposed Merger with CoreWeave Was Rejected by Shareholders
Core Scientific signed a merger agreement in July 2025 to be acquired by CoreWeave in an all-stock deal. Shareholders voted it down in October 2025. The company spent $21.6 million in advisory and legal fees on the failed transaction, adding to operating losses with no benefit. The relationship with CoreWeave as a customer remains intact, but the episode is a reminder of governance and strategic uncertainty at a company still early in its transformation.
Capital Spending Surged to $729M While Cash Reserves Dropped Sharply
| Metric | 2025 | 2024 |
|---|---|---|
| Capital Expenditures | $729.0M | $95.0M |
| Cash & Equivalents | $311.4M | $836.2M |
| Bitcoin Holdings (fair value) | $222.0M | $23.9M |
The company is spending heavily to convert its facilities — capital expenditures jumped nearly eightfold in a single year. Cash fell from $836M to $311M, but bitcoin holdings grew to $222M, which management says it plans to largely sell in early 2026 to fund ongoing construction. More spending is planned for 2026, so liquidity management will be closely watched.
Overhead Costs Ballooned, Pushing Adjusted EBITDA Into Negative Territory
Adjusted EBITDA (a measure of operating profitability that strips out one-time and non-cash items) swung from positive $157.4M in 2024 to negative $29.7M in 2025. Selling, general and administrative expenses rose 40% to $159M, driven largely by a $34M increase in stock-based compensation (paying employees in company shares rather than cash). Colocation startup costs also jumped to $48.2M. These are partly transitional costs, but they signal the company is burning cash operationally while its new revenue stream is still ramping up.