Core Scientific’s years-long decision to diversify beyond Bitcoin mining continued to pay off in the second quarter, as the company reported revenue of $164.2 million, more than double the $78.6 million it recorded a year earlier. Artificial intelligence (AI) colocation has now become its dominant business.

The former Bitcoin mining giant generated $136.7 million from colocation services during the quarter, compared with just $10.6 million a year earlier. By contrast, self-mining revenue continued to decline as the company redirected power capacity toward hosting AI and high-performance computing (HPC) customers. The shift reflects a broader trend among Bitcoin miners seeking more predictable, long-term revenue following the 2024 Bitcoin halving, which cut mining rewards by 50%.

Core Scientific also reported a net loss of $1.15 billion. The company said the loss was largely driven by a non-cash accounting adjustment tied to the rising value of outstanding warrants as its share price increased, rather than deterioration in its underlying operations.

Gross profit rose to $70 million from $5 million a year earlier.

The company’s transformation accelerated alongside a new partnership with AMD, which gives the chipmaker access to more than 500 megawatts of AI-ready data center capacity beginning in 2027, with the potential to expand to 2.5 gigawatts. The agreement builds on Core Scientific’s strategy of monetizing power infrastructure through long-term AI hosting contracts instead of relying primarily on Bitcoin mining income, highlighting how existing mining infrastructure is being repurposed for compute-heavy workloads as demand grows for AI data center capacity.

Once among the world’s largest publicly traded Bitcoin miners, Core Scientific now derives the majority of its revenue from AI infrastructure while maintaining a Bitcoin treasury of fewer than 1,000 BTC. The transition has positioned the company to benefit from demand for AI data centers while reducing its exposure to Bitcoin price swings and post-halving mining economics. Investors and industry watchers will likely focus on how quickly the company can turn its contracted capacity into operating revenue as more of its data center footprint shifts toward AI and HPC use cases.

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