TLDR
- Core Scientific rises 7% despite $146.7M Q3 loss amid CoreWeave merger hopes.
- Q3 revenue dips to $81.1M as mining output falls, offset by bitcoin price gains.
- CoreWeave merger set to redefine Core Scientific’s AI-focused colocation future.
- Strong liquidity of $694.8M backs transition despite weaker EBITDA results.
- Market eyes Oct. 30 vote as CoreWeave deal drives long-term growth optimism.
Core Scientific, Inc. shares surged 7.09% to close at $19.34 despite posting a net loss in Q3 2025.
Core Scientific, Inc., CORZ
The company reported a $146.7 million loss, yet saw strong momentum due to optimism around its pending merger with CoreWeave. While financial results showed mixed performance, expectations tied to the all-stock merger kept sentiment buoyant.
Q3 2025 Financials Show Mixed Signals with Declines Across Mining Segments
Core Scientific generated $81.1 million in total revenue for the quarter, down from $95.4 million a year earlier. Digital asset self-mining revenue fell to $57.4 million, mainly due to a 55% drop in bitcoin output. However, this was partially balanced by an 88% increase in the average bitcoin price.
Hosted mining revenue dropped sharply to $8.7 million from $16.9 million in the same period last year. This decline followed a continued push to exit lower-margin segments and focus on higher-value colocation. Meanwhile, the High-Density Colocation business grew its revenue to $15 million, up from $10.3 million year-over-year.
Gross profit stood at $3.9 million, marking a recovery from the $0.2 million loss in the prior-year quarter. Adjusted EBITDA fell into negative territory at $(2.4) million, driven by lower revenue and higher operating expenses. The company’s capital expenditures totaled $244.5 million, with $196.4 million funded through agreements with CoreWeave.
Merger Agreement with CoreWeave Dominates Market Narrative
The company’s July 7 agreement with CoreWeave created a wave of anticipation leading up to the upcoming shareholder vote. The deal proposes an all-stock transaction where each CORZ share would convert into 0.1235 CoreWeave shares. This transaction remains subject to approval at the October 30 special meeting and other standard conditions.
Market interest surged after confirmation that CoreWeave would provide high-density infrastructure, aligning with Core Scientific’s strategic roadmap. The company emphasized that this deal supports its long-term AI-focused colocation transition. As such, the proposed merger forms a cornerstone of Core Scientific’s ongoing operational overhaul.
Amid merger discussions, Core Scientific will not host an earnings call or provide a slide presentation for Q3. Instead, it directed stakeholders to review its filed Form 10-Q for full financial disclosures. This decision aligns with the company’s focus on transaction execution and maintaining regulatory clarity.
Liquidity Position Strengthens Despite Broader Revenue Pressure
Core Scientific ended Q3 with $694.8 million in liquidity, including $453.4 million in cash and $241.4 million in bitcoin holdings. This provides a solid foundation to support capital needs during its infrastructure shift and merger execution. Even with negative EBITDA, the company remains financially positioned to advance strategic priorities.
The smaller fair value adjustment on warrants and rights—$74.9 million versus $408.5 million last year—reduced headline net losses. Core Scientific aims to expand AI-compatible infrastructure and phase out legacy mining operations, aligning with high-margin opportunities. With capital support from CoreWeave, the company continues building out its colocation ecosystem.
As October 30 approaches, market attention remains fixed on shareholder approval and merger closure. The stock’s recent rally reflects confidence in the long-term potential of the CoreWeave transaction. While operational challenges persist, the strategic pivot and robust liquidity position offer a pathway to recovery.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
