Core Scientific's Mining Loss Masks $80M AI Hosting Gain

Core Scientific, once a prominent Bitcoin miner, reported a significant decline in its self-mining business's gross margin during Q2. The segment posted a negative 56% margin, generating $21.5 million of revenue against $33.7 million of cost of revenue.

This resulted in a $12.2 million segment gross loss for the three months ended June 30.

In contrast, Core Scientific's high-density colocation business generated $136.7 million of revenue and $80.0 million of gross profit at a 59% margin, exceeding the company's consolidated total.

The disparity highlights the shift in focus from mining to AI hosting, with Core Scientific repurposing its remaining mining facilities for high-density colocation 'as circumstances allow.'