Bitcoin Miner to AI Beast? Core Scientific's $694M Pivot Faces Game-Changing Merger Vote

Core Scientific CORZ could be entering its next chapter as it shifts from bitcoin mining to powering the AI data boom. The company reported third-quarter revenue of $81.1 million, down from $95.4 million a year ago, as its self-mining segment fell to $57.4 million following a 55% decline in bitcoin mined. That hit was partially cushioned by an 88% increase in bitcoin's average price. Meanwhile, high-density colocation revenue climbed to $15.0 million from $10.3 million, underscoring management's pivot toward hosting high-performance computing infrastructurea move that could make Core Scientific a key player in the digital backbone of AI workloads.

Profitability is showing early signs of stabilization. Gross profit improved to $3.9 million, reversing a loss last year, while net loss narrowed to $146.7 million from $455.3 million, helped by smaller fair-value adjustments on warrants and contingent rights. Adjusted EBITDA slipped to $(2.4) million, weighed by higher expenses, but liquidity remains strong at $694.8 million$453.4 million in cash and $241.4 million in bitcoin. Capital expenditures surged to $244.5 million, most of it funded by CoreWeave CRWV, which is already a major partner in Core Scientific's colocation expansion.

That partnership could soon become permanent. In July, Core Scientific agreed to merge with CoreWeave in an all-stock deal that would convert each share into 0.1235 shares of CoreWeave Class A stock. The vote is set for October 30, 2025, and if approved, the merger could accelerate Core Scientific's transformation into an AI infrastructure powerhousepositioned not just for crypto cycles but for the broader wave of compute demand reshaping the digital economy.