Core Scientific Reports 55% Drop in Bitcoin Mining Output — Signals a Tough Quarter for Miners

As Bitcoin flirts with $112K, one of the world’s largest mining companies faces a sharp decline in self-mined revenue — raising questions about miner resilience ahead of the next difficulty adjustment.

Core Scientific, one of North America’s largest Bitcoin mining companies, has reported a 55% year-on-year decline in self-mined Bitcoin revenue for Q3 2025, according to the firm’s latest interim filing released today.

The report reveals a substantial hit to profitability despite stable network hash rates, marking one of the most challenging quarters for the mining sector this year.

A Breakdown of the Numbers

The company mined significantly fewer BTC compared to Q3 2024, even as Bitcoin’s price averaged above $105,000 during the period.

While the filing did not disclose the exact BTC quantity mined, analysts estimate Core Scientific’s yield dropped by over half, largely due to:

• Higher electricity and operational costs amid global energy price surges,

• Network difficulty spikes, driven by aggressive hash rate expansion in Kazakhstan, the U.S., and China,

• Increased equipment depreciation and hosting inefficiencies following the rollout of newer-gen ASIC rigs.

This combination led to a net revenue decline of over 55% year-over-year — a sharp contrast to the broader market rally.

Why This Matters for Bitcoin

Bitcoin mining output is a direct indicator of the network’s health and miner sentiment. A sustained drop in mined output or profitability could:

• Force smaller miners to capitulate, selling BTC reserves to cover costs,
• Lead to temporary hash rate declines,
• Potentially trigger a difficulty reduction during the next adjustment window.

However, given Bitcoin’s steady price action around $112K and institutional accumulation patterns, market analysts argue that miner weakness may have limited short-term impact on price but could reshape mining concentration over the coming quarters.

Caption: How the 2024 Bitcoin halving reshaped miner economics — Core Scientific’s 55% revenue drop underscores rising costs and network difficulty.

Industry Reaction

Crypto market analysts at Binance Square noted that miner margins are “being squeezed by macro pressures despite price appreciation,” pointing to a disconnect between BTC price strength and miner profitability.

Other experts suggest that if Bitcoin continues its climb toward the projected $135K target by year-end (as per Brave New Coin’s latest model), the current miner downturn could reverse rapidly.

Still, the contrast between price growth and miner strain highlights the fragility of the mining ecosystem — where operational inefficiency or power market volatility can quickly erode gains.

Broader Context: Miner Economics Post-Halving

This quarter marks the first full quarter post the 2025 Bitcoin halving, which cut block rewards from 3.125 BTC to 1.5625 BTC per block.

Even though transaction fees have increased, they haven’t fully offset lost rewards, leaving many mid-tier miners struggling to maintain break-even levels.

Core Scientific’s report underscores what analysts have long warned:

“The halving doesn’t kill the market — it tests who’s truly built for it.”

What to Watch Next

Over the coming weeks:

• Watch for hash rate adjustments — a major drop could indicate miner shutdowns.

• Monitor miner BTC outflows on-chain; a spike could signal forced selling.

• Keep an eye on Core Scientific’s forward guidance — if it reduces capacity or announces restructuring, other miners may follow suit.

If Bitcoin maintains above $110K, this could become a short-term pain but long-term resilience test for the mining sector.

Editorial Takeaway

Core Scientific’s tough quarter isn’t just a company story — it’s a microcosm of how post-halving mining economics are evolving.

Bitcoin’s rising price no longer guarantees miner prosperity. The next bull phase may reward efficiency, energy diversification, and smart treasury management, not just hash power.

As the market eyes new highs, miners are learning — profitability now demands strategy, not brute force.

See all our insights: Bitcoin World News