0001628280-25-039284
SEC filingCore Scientific reports $1.71B colocation capital commitments, $172.8M digital assets, and segment gross margins ranging 5% to 19%.
As of June 30, 2025, Core Scientific held $581.3 million in cash and cash equivalents, down from $836.2 million at year-end 2024, primarily due to capital expenditures. Digital assets increased to $172.8 million (1,612 bitcoins) from $23.9 million. Total debt (net of discounts) stood at $1,059.2 million, comprising $1.085 billion in convertible notes (0% and 3%) and $1.6 million in other notes. The company has a stockholders' deficit of $1,064.7 million. Deferred revenue surged to $150.1 million, reflecting prepayments for colocation services.
The company disclosed $1.71 billion in contractual commitments for colocation infrastructure, including modifications, equipment, and labor. Of this, $1.26 billion will be passed through to the customer, and $427.9 million will be funded via prepaid base license fees. These expenditures are expected within 12-24 months. Additionally, operating lease obligations total $142.2 million in undiscounted payments, with $9.2 million due in the remainder of 2025.
No share buybacks or dividends were reported. Debt activity included the full repayment of five higher-interest facilities totaling $26.6 million, resulting in a $1.4 million loss on extinguishment. Capital expenditures were $209.7 million in the first half of 2025, primarily for colocation buildout. No new debt was issued; the convertible notes remained unchanged.
The company operates three segments: Digital Asset Self-Mining (DSM), Digital Asset Hosted Mining (DHM), and Colocation. For Q2 2025, DSM generated $62.4 million in revenue (down 44% YoY) with a 5% gross margin. DHM revenue was $5.6 million (down 77% YoY) with a 19% margin. Colocation revenue reached $10.6 million (up 91% YoY) with an 11% margin. The CODM evaluates performance using gross profit. All operations are in the United States. Revenue concentration: one customer accounted for 100% of DSM revenue, and one customer accounted for 100% of Colocation revenue.
Net loss improved from -$594.2M to -$356.1M, but operating cash flow deteriorated to -$6.6M from +$23.4M. The divergence is primarily due to large non-cash gains: increase in fair value of warrant liabilities of $289.4M and digital asset self-mining revenue of $129.8M, which reduced the net loss but did not affect cash. Adjustments for depreciation, stock-based compensation, and working capital changes were offset by a $131.3M increase in deferred revenue from colocation services. Capex intensity rose sharply to $209.7M (vs. $35.0M), reflecting build-out for AI colocation contracts. Financing activities swung to -$36.0M due to debt extinguishment payments of $26.9M and principal payments of $8.6M. No share repurchases or dividends were reported. The negative free cash flow (CFO minus capex) of -$216.3M signals heavy investment phase.