Core Scientific Q2 Mining Revenue Down 62%, Merger Pending
Core Scientific saw its Q2 Bitcoin mining revenue slump 62% year-on-year to $62.4 million. Hosting revenue dropped to $5.6 million, and gross profit plunged to $5 million. The planned all-stock merger with GPU cloud provider CoreWeave is pending shareholder approval and regulatory clearance. The deal aims to combine mining capacity and data centre operations to boost efficiency. Rising network difficulty, energy costs and BTC price volatility squeezed Bitcoin mining margins across the sector. Traders should watch for the shareholder vote on the CoreWeave merger and any cost-cutting measures as Core Scientific seeks financial recovery and potential upside in mining profitability.
Neutral
The Q2 report highlights significant margin pressures and weak profitability for Bitcoin miners, which could lead to increased BTC sales in the short term as companies cover operating costs, exerting downward pressure on prices. However, the pending CoreWeave merger and planned efficiency measures may bolster miner operations and network stability over the long term, balancing potential sell-offs. Overall, these factors suggest a neutral impact on Bitcoin price, with traders advised to monitor merger developments and cost-control efforts for signs of future market shifts.