Core Scientific lost 56% on Bitcoin mining but $80M in profit from its pivot to AI hosting

Core Scientific, a longtime Bitcoin miner now converting sites for AI computing, reported a negative 56% self-mining gross margin in the second quarter as its colocation business generated sharply higher profit.

The company’s Q2 results show self-mining generated $21.5 million of revenue against $33.7 million of cost of revenue. That left a $12.2 million segment gross loss for the three months ended June 30.

High-density colocation, which provides powered data-center capacity for AI customers, moved in the opposite direction. The segment produced $136.7 million of revenue and $80.0 million of gross profit at a 59% margin. That gross profit exceeded Core Scientific’s $70.0 million consolidated total because mining and other segment losses pulled the companywide figure lower.

The mining result is not a disclosed spot-Bitcoin breakeven or a cash-production-cost estimate. Cost of revenue included $17.9 million of power fees, $9.9 million of depreciation and other operating expenses, so the margin cannot be reduced to the price at which the machines cover electricity alone.

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