Two Bitcoin miners reported nearly $2 billion in profit. The biggest boost wasn’t cash
Core Scientific and TeraWulf reported about $1.89 billion in combined third-quarter net income as data-center hosting for AI customers became their main business. The headline profits were driven largely by $1.76 billion in non-cash gains from revaluing warrants and other financial instruments, rather than operating performance. Core reported $72 million in operating income, while TeraWulf had an $88 million operating loss. Hosting revenue grew at both firms, but expansion requires substantial investment: Core generated operating cash yet spent heavily on construction and acquisitions, while TeraWulf used operating cash and relied on financing and asset-sale proceeds. Their ability to fund further development will depend on customer payments, delivered capacity and access to financing.
