Core Scientific Posts 11% Decline in Q3 Revenue Amid Market Share Erosion

Bitcoin mining and colocation provider Core Scientific (NASDAQ: CORZ) recorded an 11% decline in Q3 revenue compared to Q2 despite bitcoin’s average prices remaining at $28,000 during both quarters.

In a Q3 filing on Monday, Core Scientific reported a total revenue of $112.9 million from its proprietary mining and hosting segments, down from $126.9 million in the previous quarter. It’s worth noting that Q3’s revenue was even lower than those of Q4’22 and Q1’23, when bitcoin’s average prices were around $20,000.

Meanwhile, operating expenses, including the cost of revenue (COGS), selling, general and administration (SG&A) but excluding depreciation and share-based compensation, experienced a slight increase to over $86.7 million in Q3. However, these expenses remained significantly lower compared to the figures in 2022.

The decrease in Core’s self-mining production capacity, driven by increased competition in the network, was the primary factor behind the decline in total revenue.