Bitcoin miner and AI compute provider Core Scientific reported mixed fourth-quarter 2025 financial results, missing revenue expectations as its core mining business declined sharply. The company's total revenue for Q4 was $79.8 million, a 16% drop from the $94.9 million reported in Q4 2024 and below Wall Street estimates of $90.4 million.
The most significant decline was in Bitcoin mining revenue, which fell to $42.2 million, nearly half of the $79.9 million generated in the same quarter the previous year. This downturn is attributed to the broader crypto market slump, with Bitcoin trading nearly 50% below its early October peak of over $126,000, ending 2025 around $68,000.
In contrast, the company's strategic pivot showed progress. Revenue from high-density colocation services, which involves renting computing infrastructure to clients like AI firms, surged to $31.3 million from just $8.5 million in 2024. CEO Adam Sullivan emphasized the expansion, stating the company is scaling its colocation platform into a 1.5-gigawatt pipeline of leasable capacity and accelerating readiness-for-service timelines across multiple sites.
Financially, the company reported a net income of $216 million for the quarter, largely due to a non-cash fair value gain of $330.3 million on holdings. However, its adjusted EBITDA showed a loss of $42.7 million. Core Scientific ended the year with liquidity of $533.4 million, comprising $311.4 million in cash and $222 million in Bitcoin. Following the earnings release, the company's shares (CORZ) fell 2.8% to $16.49 in regular trading and dipped further in after-hours trading.
The report highlights the ongoing pressure on Bitcoin miners from lower cryptocurrency prices and rising operational costs, prompting many, including Core Scientific, to diversify into AI and data center services. Notably, Core Scientific shareholders rejected a proposed $9 billion all-stock merger with AI cloud provider CoreWeave in October 2025, though the companies maintain a commercial relationship.
