Core Scientific — Income Statement, Cash Flows & Balance Sheet
Is Core Scientific profitable?
Core Scientific's revenue fell sharply as it pivots away from bitcoin mining, and the company posted another significant net loss.
| 2023 | 2024 | Change | |
|---|---|---|---|
| Total revenue ($M) | $502.4 | $510.7 | +2% |
| Total revenue ($M) | $510.7 | $319.0 | -37% |
| Gross profit ($M) | $123.5 | $121.1 | -2% |
| Gross profit ($M) | $121.1 | $37.9 | -69% |
| Gross margin | 25% | 24% | -1 pp |
| Gross margin | 24% | 12% | -12 pp |
| Net loss ($M) | $(246.5) | $(1,437.9) | n/m |
| Net loss ($M) | $(1,437.9) | $(288.6) | Improved |
Revenue dropped significantly in 2025 as Core Scientific deliberately wound down its legacy bitcoin mining business while its newer colocation (AI data center) segment is still ramping up. Gross margin was cut nearly in half, reflecting higher startup and transition costs. The net loss narrowed dramatically from 2024, but that prior-year figure was heavily distorted by a $1.37 billion non-cash accounting charge tied to warrant liabilities — stripping that out, the underlying loss trend is more modest.
Heavy one-time and transition costs are masking the true operating picture.
| Item ($M) | 2024 | 2025 | Change |
|---|---|---|---|
| Colocation startup costs | $13.7 | $48.2 | +252% |
| PP&E impairment charges | $122.9 | $11.4 | -91% |
| Advisor fees | $4.8 | $23.4 | +387% |
| Change in fair value of warrants (non-cash) | $1,369.2 | $33.1 | -96% |
The company is spending heavily to convert its data centers for AI workloads — demolishing old bitcoin mining equipment and building new high-density infrastructure. These transition costs are real cash outlays that reduce reported profit, but they are not expected to be permanent. The auditors also issued an adverse opinion on internal controls, partly linked to a restatement of prior financials after the company discovered it had been improperly capitalizing assets slated for demolition.
Where does Core Scientific's revenue come from?
Bitcoin self-mining is shrinking fast; AI colocation is growing from a small base but is now the strategic core.
| Segment ($M) | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Colocation revenue | $— | $24.4 | $65.4 | +168% |
| Colocation gross margin | — | 11% | 30% | +19 pp |
| Digital Asset Self-Mining revenue | $390.3 | $408.7 | $229.2 | -44% |
| Self-Mining gross margin | 25% | 23% | 5% | -18 pp |
| Digital Asset Hosted Mining revenue | $112.1 | $77.6 | $24.4 | -69% |
| Hosted Mining gross margin | 22% | 31% | 32% | +1 pp |
The colocation segment — leasing power-dense data center space to AI customers like CoreWeave — more than doubled in revenue and its margin improved substantially as more capacity came online. Meanwhile, self-mining revenue nearly halved and its margin collapsed, squeezed by the bitcoin network's rising difficulty (the April 2024 "halving" event cut block rewards in half) and the deliberate shift of facilities toward colocation use. Hosted mining is being actively phased out. All colocation revenue currently comes from a single customer, which is a meaningful concentration risk.
Does Core Scientific generate cash?
Operating cash flow turned solidly positive, driven almost entirely by large upfront payments from its colocation customer.
| Cash Flow Item ($M) | 2023 | 2024 | 2025 | Change (24→25) |
|---|---|---|---|---|
| Net cash from operations | $65.1 | $42.9 | $278.3 | +549% |
| Of which: deferred colocation revenue received | $— | $17.8 | $536.1 | n/m |
| Net cash used in investing | $(3.0) | $(95.2) | $(740.8) | n/m |
| Of which: PP&E purchases | $(16.2) | $(95.0) | $(729.0) | +667% |
| Net cash from financing | $(44.6) | $819.6 | $(63.1) | n/m |
| Net change in cash | $17.5 | $767.3 | $(525.6) | n/m |
The headline operating cash flow number looks impressive, but it is almost entirely explained by $536 million in advance payments from Core Scientific's colocation customer funding construction — money that will be earned over time as services are delivered. Strip that out and underlying operating cash generation is much thinner. The company is in a massive capital expenditure cycle, spending nearly three-quarters of a billion dollars in 2025 to build out AI data center capacity, with roughly $990 million more committed as of year-end.
How strong is Core Scientific's balance sheet?
Core Scientific carries more liabilities than assets — a stockholders' deficit — and holds significant long-term debt.
| Balance Sheet Item ($M) | Dec 2024 | Dec 2025 | Change |
|---|---|---|---|
| Cash & equivalents | $836.2 | $311.4 | -63% |
| Digital assets (bitcoin holdings) | $23.9 | $222.0 | +829% |
| Total assets | $1,475.9 | $2,347.6 | +59% |
| Convertible notes payable | $1,073.9 | $1,060.3 | -1% |
| Warrant liabilities (non-cash) | $1,097.3 | $936.1 | -15% |
| Total stockholders' deficit | $(943.0) | $(962.7) | Wider |
Cash fell sharply as the company funded its construction program, though it now holds roughly 2,500 bitcoin worth about $222 million, which provides a liquid buffer. The balance sheet remains technically insolvent (liabilities exceed assets), though this is partly an accounting artifact: the $936 million warrant liability is a non-cash mark-to-market obligation, not a cash debt. The company's $1.085 billion in convertible notes don't mature until 2029 and 2031, giving it runway. The committed but not-yet-spent capital expenditure pipeline of nearly $1 billion means liquidity management will remain a key watch item.